The Energy Insurance Marketplace. A North American perspective.

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The Energy Insurance Marketplace.A North
American perspective.
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The Energy Insurance Marketplace.A North
American Perspective.
3
Significant Oil Company Mergers

• Pre-Merger
• BP
• Arco
• Amoco
• Union Texas Petroleum
• Exxon
• Mobil
• Total
• Fina
• Elf Aquitane

• Post-Merger
• BP Amoco
• Exxon Mobil
• Total Fina Elf

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Significant Oil Company Mergers (cont.d)

• Pre-Merger
• Saga
• Statoil
• Repsol
• UPF
• Amerada Hess
• Triton
• Conoco
• Phillip

• Post-Merger
• Statoil
• Repsol
• Amerada Hess
• ConocoPhillips

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Significant Oil Company Mergers (cont.d)

• Pre-Merger
• Chevron
• Texaco
• Kerr McGee
• ORYX
• Burlington Resources
• Canadian Hunter
• Pan Canadian Petroleum
• Alberta Energy Corp.

• Post-Merger
• Chevron Texaco
• Kerr McGee
• Burlington Resources
• Encana

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Significant Oil Company Mergers (cont.d)

• Pre-Merger
• Anadarko
• Union Pacific Resources
• El Paso
• Coastal
• Shell
• Enterprise
• Dominion Energy
• Louis Dreyfus Natural Gas

• Post-Merger
• Anadarko
• El Paso
• Shell
• Dominion Energy

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Significant Oil Company Mergers (cont.d)

• Pre-Merger
• Ocean Energy
• Pennzoil
• Devon
• Andex
• Mitchell Energy
• Santa Fe Snyder

• Post-Merger
• Devon

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Offshore Energy Physical Damage Loss Ratio
Development
loss Ratio




NBLoss ratio is expresses before underwriting
expenses 9 months as of October 2002
Source Lloyds
9
Energy Control of Well loss ratio development
loss Ratio





NBLoss ratio is expresses before underwriting
expenses 9 months as of October 2002
Source Lloyds
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The Energy Insurance Marketplace.A North
American Perspective.
11
The Energy Insurance Marketplace.A North
American Perspective.
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The Energy Insurance Marketplace.A North
American Perspective.
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The Energy Insurance Marketplace.A North
American Perspective.
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J. Peter Connors President and CEO Zurich Global
Energy
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Offshore Property Capacity 2002
2.3bn
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Offshore Property Capacity 2003
2.49bn
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Offshore Property Capacity in Use 2003
1.25bn
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Number of Offshore Energy Insurers Worldwide
120
110
100
90
80
70
60
50
40
1996
1997
1998
1999
2000
2001
2002
2003
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Market Trends - Capacity/Rate
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Offshore Global Premium Levels
1.5bn
1.8
1.3bn
1.6
1.2bn
1.4
1.0bn
1.2
0.80bn
1.0
0.75bn
billions
0.8
0.80bn
0.6
0.81bn
1.2bn
0.4
1.5bn
0.2
0
'02
93
94
95
96
97
98
99
'00
'01
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Aggregate Losses per annum versus premium
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Offshore Construction Claims 1992-2002Excess of
US1M
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Offshore Construction Claims 1992-2002Estimated
Annual Premium Volume
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CONCLUSIONS

• History will repeat itself if you do nothing to
  prevent it.
• Customers do not want to do business with losers.
• Capital is KingToo much is a waste of resources
  and too little will limit opportunities.
• If the hard market stops short for P C
  companies, it will end badly for some insurers.
• If all you have to offer is pricing, your
  customers will soon be mine.
• GOOD LUCK

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(No Transcript)
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Commonwealth Insurance Company
HOUSTON MARINE INSURANCE SEMINAR State of the
Energy Market - A Domestic View Monday,
September 22, 2003
Presented by Robert R. Smith Sr. Vice President,
Energy International
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(No Transcript)
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Commonwealth Insurance Company
HOUSTON MARINE INSURANCE SEMINAR State of the
Energy Market - A Domestic View Monday,
September 22, 2003
Presented by Robert R. Smith Sr. Vice President,
Energy International
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Corporate Information
Commonwealth Insurance Company was incorporated
by an act of the Canadian Parliament on July 17,
1947 and has operated as a federally registered
insurer since April, 1950. In April of this
year, the ownership of Commonwealth and three
sister, Canadian insurance companies was
transferred to Northbridge Financial Corporation,
a Canadian holding company. An Initial Public
Offering of Northbridge shares was completed in
June. At year-end 2002, the Northbridge
Companies had Written Premiums of 1.78 billion.
The groups Shareholders Equity stands at 686
million.
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Corporate Information cont...

• Approx.. US 182 Million Capital and Surplus
  (CDN255 Million)
• 89.45 Combined Ratio in 2002
• 89.3 Combined Ratio in 1st half 2003
• The company is eligible to write insurance on
  an excess and surplus lines basis in 44 U.S.
  states plus the District of Columbia.

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Commonwealth Capital Surplus
255 mm
160 mm
104 mm
76 mm
40 mm
10 mm

TODAY
5 Years Ago
10 Years Ago
15 Years Ago
20 Years Ago
25 Years Ago
30 Years Ago
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Composition EI Offshore/Marine Book
Premium Income 50 million
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Location
Premium Income 50 million
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Commonwealth Insurance Company 595 Burrard
Street, Suite 1500 Box 49115, Bentall Tower
Three Vancouver, B.C., V7X 1G4 Telephone (604)
683-5511 Facsimile [phone] www.commonw.com