Baden-Baden Reinsurance Symposium Assesses Future Impact of Current Market Conditions

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New York, NY (Oct. 20, 2014) – Guy Carpenter & Company, LLC, the leading
global risk and reinsurance specialist and a wholly owned subsidiary of Marsh & McLennan Companies,
hosted “The Reinsurance Industry of the Future,” the Reinsurance Symposium held in Baden-
Baden on October 19. A distinguished line-up of industry luminaries expressed their views on
whether the current changes impacting the reinsurance sector are permanent and structural in
nature, are a tactical response to short-term conditions, or are part of the normal evolutionary

Nick Frankland, Chief Executive Officer of EMEA Operations at Guy Carpenter, provided the
Symposium’s opening remarks and the event was moderated by Chris Klein, Managing Director
and Head of EMEA Strategy Management at Guy Carpenter. The keynote speakers were: Ulrich
Wallin, Chairman of the Executive Board of Hannover Re Group; Amer Ahmed, Chief Executive
Officer of Allianz Re; and Brian Duperreault, Chief Executive Officer of Hamilton Insurance Group.
Margret Mergen, Lord Mayor of Baden-Baden, welcomed attendees to the city.

Introducing the theme for the Symposium, Mr. Frankland said that present market conditions were
not necessarily all “doom and gloom”, adding that: “The wide variety of supply means choice for our
customers. So we must become expert in and able to advise our clients on all that is available,
helping to create solutions that exploit this cornucopia. We must also work with the reinsurers and
insurers to stimulate demand by filling known insurance gaps and providing solutions for the new
breed of risks.”

Offering the reinsurer’s perspective, Mr. Wallin stated that traditional reinsurance offers far more
than just capacity. “Our long-term orientated business model provides extensive experience in
assessing current and future risks, in managing risks, and in creating tailor-made risk transfer
solutions.” He added: “We offer a consistent client relationship approach and high stability due to
reinstatement covers.” Mr. Wallin stated that new product and distribution initiatives will become
even more important in the future. He continued: “We support the development of covers for
emerging and future risks, for instance infectious diseases, technological and cyber risks. In
addition to the support offered for sensing new business opportunities, we also provide distribution
capabilities particularly for life and health products in new markets.”

Providing insight into the changing approach of the reinsurance buyer, Mr. Ahmed highlighted the
increasing strategic value that reinsurance provided. “We are seeing a shift towards the use of
reinsurance as a strategic tool,” he said, “to manage capital and earning volatility from a Group
perspective, and away from a trading activity at an individual entity or line of business level.” In
terms of how this shift is influencing reinsurance buying within his own organization, he added: “The
market offers a range of alternative instruments – varying by coverage scope, term, capacity
provider and security – and we use several of them to manage our retrocession landscape as a

Mr. Duperreault considered the impact of the capital markets and addressed the question of
whether the reinsurance industry faced an existential threat. “I don’t think that the threat faced by
the industry is existential. Yes, it is at a critical inflection point, but we have seen a number of
inflection points before and it is usually a place where real opportunities lie.” He concluded: “At the
end of the day we are all risk takers. We place a risk and match it up with the best possible capital.
How well we match risk to capital will be driven by how well insurers, reinsurers and brokers adapt
to the winds of change. The brush strokes we use to paint the future of our industry should be big
and bold – and I have no doubt that they will be.”

Drawing the discussion to a close, Mr. Klein said: “We have been reminded today that not
everything stands still, but also that some things do not change. Risk will always exist and there will
always be those who see risk either as a threat or an opportunity for reward. Our business remains
bringing the two together even if the method and means of doing so changes over time.”

About Guy Carpenter

Guy Carpenter & Company, LLC is a global leader in providing risk and reinsurance intermediary services.
With over 50 offices worldwide, Guy Carpenter creates and executes reinsurance solutions and delivers
capital market solutions* for clients across the globe. The firm’s full breadth of services includes line-ofbusiness
expertise in agriculture; aviation; casualty clash; construction and engineering; cyber solutions;
excess and umbrella; excess and surplus lines; healthcare & life; marine and energy; mutual insurance
companies; political risk and trade credit; professional liability; property; retrocessional reinsurance; surety;
terrorism and workers compensation. GC Fac® is Guy Carpenter’s dedicated global facultative reinsurance
unit that provides placement strategies, timely market access and centralized management of facultative
reinsurance solutions. In addition, GC Analytics®** utilizes industry-leading quantitative skills and modeling
tools that optimize the reinsurance decision-making process and help make the firm’s clients more
successful. For more information, visit

Guy Carpenter is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), a global
professional services firm offering clients advice and solutions in the areas of risk, strategy and human capital.
Marsh is a global leader in insurance broking and risk management; Mercer is a global leader in talent, health,
retirement, and investment consulting; and Oliver Wyman is a global leader in management consulting. With
annual revenue exceeding $12 billion, Marsh & McLennan Companies’ 55,000 colleagues worldwide provide
analysis, advice, and transactional capabilities to clients in more than 130 countries. The Company prides itself
on being a responsible corporate citizen and making a positive impact in the communities in which it operates.
Visit for more information.

*Securities or investments, as applicable, are offered in the United States through GC Securities, a division of MMC Securities Corp., a US
registered broker-dealer and member FINRA/SIPC. Main Office: 1166 Avenue of the Americas, New York, NY 10036. Phone: (212) 345-5000.
Securities or investments, as applicable, are offered in the European Union by GC Securities, a division of MMC Securities
(Europe) Ltd. (MMCSEL), which is authorized and regulated by the Financial Conduct Authority, main office 25 The North Colonnade,
Canary Wharf, London E14 5HS. Reinsurance products are placed through qualified affiliates of Guy Carpenter & Company, LLC. MMC
Securities Corp., MMC Securities (Europe) Ltd. and Guy Carpenter & Company, LLC are affiliates owned by Marsh & McLennan
Companies. This communication is not intended as an offer to sell or a solicitation of any offer to buy any security, financial instrument,
reinsurance or insurance product. **GC Analytics is a registered mark with the U.S. Patent and Trademark Office.

**GC Analytics is a registered mark with the U.S. Patent and Trademark Office.