Asbestos Reserve Study

1/14/2003


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Table of Contents

Asbestos Reserve Study

Forward Looking Statements

Participants

Agenda

Major Conclusions and Actions Taken

Major Conclusions and Actions Taken

Major Conclusions and Actions Taken

Major Conclusions and Actions Taken

Agenda

Historical Methodology

Changing Asbestos Environment

Expanded Methodology

Segmentation of Asbestos Exposures

Reserves by Policyholder Category

Structured Settlements

Structured Settlements

Reserves by Policyholder Category

Coverage in Place

Coverage in Place

Reserves by Policyholder Category

Wellington Accounts

Wellington Accounts

Reserves by Policyholder Category

Home Office Review

Home Office Review

Reserves by Policyholder Category

Field Office Review

Policyholders with First Notice Last 3 Years

Reserves by Policyholder Category

Assumed Reinsurance

Reserves by Policyholder Category

Unallocated IBNR

Coverage Disputes and Other Litigation

Asbestos Related Reinsurance Recoverables

Claim Payment Pattern

Agenda

Types of “Non-Product” Exposure

“Non-Product” Exposure: Conclusion

Agenda

Independent Actuarial Review

Agenda

Legal Environment – Potential Upside

Agenda

Financial Review

Asbestos Charge and Reserve Level

FY Operating Income After Charge

Significant Earnings and Capital Accumulation

Capital Restored by Mid 2003

Survival Ratios at December 31, 2002

Financial Summary

Agenda

Expansion of Annual Disclosures in 10K

Agenda

Summary

Disclosure

End Slide

Author: jjmcfarl