HSBC SAAB Tender

Page 1

Saab AB Response to tender March 2009


HSBC INSURANCE BROKERS

Saab Tender 2009 Contents

HSBC Group

1

Contact information

2

HSBC Insurance

3

HSBC Insurance Brokers

6

• Intelligent alternative

HSBC Aviation Practice

8

• Capabilities and credentials • Our service proposal • Saab account service team • Our achievements 2003 – 2009

Aerospace market conditions

17

Programme renewal strategy – 2009

19

• Saab Counter Cyclical Strategy • Conceptual pricing 2009

Lansen

24

Proposed remuneration

25

A final word

26

Appendices

27

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HSBC INSURANCE BROKERS

Our attributes

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e

Perceptive

Responsive

Open-minded

Kn

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a ic

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l

Re

E

fu

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Original thinkers

The intelligent alternative

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HSBC INSURANCE BROKERS

HSBC Group

Our strategy has been tested and validated. Group Chairman Stephen Green

This was a unique year, and in a unique situation we were profitable Group Chief Executive Michael Geoghegan

HSBC remains profitable in exceptionally tough markets. HSBC has reported pretax profits of US$ 9.3 billion for 2008, remaining one of the world’s most profitable banks despite exceptionally challenging market conditions. 1


HSBC INSURANCE BROKERS

Contact information – the senior Saab team HSBC Insurance Brokers Limited Registered office: 8 Canada Square London E14 5HQ United Kingdom

Mailing address: Bishops Court 27- 33 Artillery Lane London E1 7LP United Kingdom Tel:

44 (0) 207 247 5433

Fax:

+44 (0) 207 377 2139

www.hsbc.com www.insurancebrokers.hsbc.com Primary contact people:

Morley Speed Head of Complex Risks Tel:

+44 (0) 207 661 2212

Fax:

+44 (0) 207 661 2222

Mobile: +44 (0) 7768 215 523 Email:

morley.speed@hsbc.com

Peter N R Mills Head of Aviation Practice Tel:

+44 (0) 207 661 2919

Fax:

+44 (0) 207 661 2933

Mobile: +44 (0) 7899 895 180 Email:

peter.n.r.mills@hsbc.com

Graham Hersey Senior Technical Director Tel:

+44 (0) 207 661 2823

Fax:

+44 (0) 207 661 2933

Mobile: +44 (0) 7786 524 423 Email:

2

graham.hersey@hsbc.com


HSBC INSURANCE BROKERS

HSBC Insurance – global reach HSBC Insurance remain uniquely positioned to give Saab access to the services of Europe’s largest banking, insurance and financial services organisation.

O

surance Busines n I s ur

HSBC Insurance

• Over 30 million policy holders in 53 countries and territories worldwide • Top 17 insurer • Over 10,000 staff employed worldwide • In 2008, HSBC’s insurance businesses generated: > Premium growth 20% to US $11 billion > US $2.6 billion profit before tax (15% of total Group profits) • In-house customer base of over 128 million customers and companies

es

HSBC Insurance Brokers

• International specialist insurance and reinsurance broker; with global operating presence • Only major insurance broker that forms part of a global Banking Group > Founded 1808 and joined HSBC Group in 1980 > Handles premiums of US $ 2,100 million per annum > Employs over 2,400 people in 20 countries and territories worldwide • Founder member of owned network – Assurex Global

3


HSBC INSURANCE BROKERS

HSBC’s global insurance presence

UK

US

• HSBC manufactures life, pensions and investments products within HSBC Life (UK) for distribution through the HSBC network and external IFAs • GI products are distributed through HSBC network, First Direct and Marks and Spencers stores • These products are underwritten by 3rd party insurance companies, with a JV currently being formed with Aviva Norwich Union. Other parties include Allianz. • Insurance Broking • Reinsurance services in Ireland • Actuarial consultancy and pension services • Health insurance underwritten by Westfield Contributory Health Scheme Limited.

• HSBC Insurance Agency (USA) – 100% owned • Offers life insurance and also underwrites • Offers credit protection to 50 million HSBC finance customers.

Central America

Brazil

• Grupo Banistmo bought in 2006, with presence in Panama, Honduras and El Salvador.

• HSBC Seguros – 100% owned • Long-term distribution agreement whereby HDI a subsidiary of Talanx offers GI products through the HSBC Brazil branch network following 2005 sale of HSBC GI arm to HDI

Mexico • HSBC Seguros – 100% owned • HSBC Afore – 100% owned • HSBC Pensiones – 100% owned • Seguros provides a range of Life and GI products; products are distributed through bank branches • HSBC Pensiones provides annuities and survivorship insurance brokerage arm and the network of more than 2,000 points of sale.

France

• ERISA and ERISA IARD • Distributes Life insurance, GI and investment products Exclusive distributors of insurance through HSBC’s network of member banks (includes HSBC France and 10 regional banks)

Argentina

• HSBC La Buenos Aires Seguros – 100% owned • JVs with New York Life • Maxima – 59.99% owned • Specialises in pensions • HSBC New York Life • A top three market share leader • Distributes through HSBC’s insurance brokerage arm and the network of more than 2,000 points of sale.

4

India • 25.9% stake in HSBC Insurance Brokers (India) Private Limited • Insurance broking company • Direct and reinsurance broker • JV with OBC and Canara Bank being formed.


Our heritage... HSBC acquires 10% in Bao Viet Insurance

2007

HSBC acquires Bank of Bermuda, a client of HSBC

2004

Insurance Brokers since around 1920

China • 16.8% stake in Ping An Insurance • Beijing HSBC Insurance Brokers Limited – 24.9% owned JV • Partnered with Shanghai Hua Yu Asset Management and Beijing Zhang Ke Engineering company • CEPA partnership with National Trust.

HSBC Insurance Brokers name replaces Gibbs

1998

Hartley Cooper

GHC acquires Holmwoods Group

1996

GHC acquires Richards Longstaff

1993

GHC acquires UK arm of Frizzells

1991

Gibbs Hartley Cooper (GHC) established

1984

Malaysia

• HSBC Amanah Takaful • 49% JV with Jerneh Asia Berhad and The Employee Provident Fund of Malaysia • Offers Shariah compliant insurance (home, fire, motor, mortgage) underwritten by Syaikat Takaful Malaysia Berhad.

Macau

following acquisition

• Established HSBC Life branch in 2006.

Singapore

• HSBC Insurance (Singapore) Limited • 100% owned.

HSBC acquires remaining 60% of Gibbs Sage

1981

HSBC takes 40% stake in Gibbs Sage

1978

Gibbs Sage Limited established following merger

1976

Lionel Sage & Co. Ltd. incorporated

1917

James Hartley Cooper formed following merger

1900

E.E. Cooper and Co. established

1874

Hong Kong and Shanghai Banking Corporation founded

1866

James Hartley and Co.

1843

Vietnam

• HSBC participated in the IPO and acquired a 10 per cent stake in Vietnam’s leading insurance and financial services group, Vietnam Insurance Corporation (Bao Viet).

South Korea

• HSBC Hana Life partnership 2007.

Hong Kong • HSBC Insurance (Asia Pacific) Holdings Limited – 100% owned • HSBC Life (International) Limited – 100% owned • HSBC Insurance (Asia) Limited – 100% owned • Hang Seng Life and Hang Seng Insurance Company Limited – subsidiaries of Hang Seng bank (62.14% owned by HSBC).

(Steamship Brokers) incorporated

Antony Gibbs & Sons incorporated as merchant bank

1808


HSBC INSURANCE BROKERS

HSBC Insurance Brokers – our structure

Philip Gregory Chief Executive

HSBC Insurance Brokers Limited

HSBC Shipping Services

HSBC Actuaries and Consultants

HSBC Insurance Brokers is part of the strongest financial services brand in the world.

investment management, treasury and foreign exchange,

We see things differently and find solutions that others

Working closely with Saab – we can deliver any type of insurance product or solution you may require

miss. We have a unique ability to leverage expertise across the world and across a wide range of disciplines, and this diversity of outlook underlies our status as ‘The Intelligent

as well as processing services and financial controls and disciplines.

Alternative’. We look forward to continuing to place our

Saab need an Insurance Broking Partner with a truly global

resources at the disposal of Saab.

presence – HSBC are positioned to deliver this.

• Only major insurance broker that forms part of a global

We are a founder member of the Assurex Global network,

banking group • Founded in 1808, and joined the HSBC Group in 1980 • Handling premiums of £1,000 million per annum • Founder member of owned network – Assurex Global • Employs over 2,300 people in 17 countries and territories worldwide.

Global perspectives individual solutions HSBC Insurance Brokers is one of the largest international insurance broking, risk management and employee benefits organisations in the world.

which ensures that we are represented by leading brokers and agents worldwide. Assurex Global forms the world’s largest independent broking network of commercial insurance, risk management and employee benefits. • Employs over 20,000 insurance professionals on six continents • 110+ independent insurance brokers • Generates annual premiums in excess of US $28 billion See Appendix B

Assurex Global is the world’s #1 independent commercial insurance brokerage group

As members of the HSBC Group we share an international network with offices in countries and territories in Europe,

Broker

the Asia-Pacific Region, the Americas, the Middle East and Africa.

1. Marsh 2. Aon

6

The Group enables us to evaluate insurance in a broader

3. AssurexGlobal Global 3. Assurex

business sense with immediate access to specialist advice

4. Willis

and services in areas such as trade finance, cash and

5. A.J. Gallagher 6. Wells Fargo 7. Jardine Lloyd Thompson

2006 Brokerage


HSBC INSURANCE BROKERS

HSBC Insurance Brokers – our practices Complex Risks

Specialty

• Aviation

• Education

Wholesale and Programs

• Construction

• Care Homes and Health Trusts

• Accident, Health and Contingency • Cargo

• Energy

• Estates and Private Clients

• Financial Institutions

• Professional Indemnity

• Specie

• Global Marine

• Trade Credit, Surety and Political Risks

• US Property and Casualty

Corporate

Commercial

Overseas

• UK offices

• Business Insurance

• Asia

• Development

• Commercial Insurance

• Middle East

• Market Relations

• Legal and Protection

• Mergers and Acquisitions, Management Liability

• Reinsurance

• Intermediary Marketing

• Strategic Risk Consulting

• National Project Management • Risk Management • Special Projects

Revenues (000) No. of Offices US$ 11,281,000

700

US$ 7,096,000

500

US$ 3,385,000 US$ 3,385,000

558 558

US$ 2,463,000

321

US$ 1,457,241

150

US$ 1,282,130

171

US$ 947,346

75

7


HSBC INSURANCE BROKERS

HSBC’s Aviation Practice – capabilities and credentials 280 aviation clients

45 countries

Aviation Practice

Global presence – our network

• A leading global aerospace broker

• 10,000 offices in 53 countries and territories

• Over 60 insurance and aviation industry professionals

• Over 30 million policy holders • We offer an ‘intelligent alternative’

Our history • Since the 1940’s we have served the aerospace industry

HSBC’s Aviation Insurance Practice hires key industry figure… HSBC Insurance Brokers (Aviation Practice) recently hired Brian Moore the ex Chairman of leading Aviation Broker Marsh Aerospace. The above is yet another clear indication that as other brokers down size and seek to ‘survive’ the economic downturn, HSBC’s remains poised to take advantage and aggressively expand it’s aviation presence, capabilities and horizons. HSBC is now living up to it’s “Intelligent Alternative” reputation.

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Airlines

General Aviation

Specialist Aircraft

Bank and Aircraft Finance

Manufacturers

Airports

ATC

Insurance Management

HSBC INSURANCE BROKERS

Aviation Practice

“We are not part of a one dimensional Insurance Broker – Aviation is part of an integrated banking, insurance and financial services organisation”.

Aviation Practice – global market share

Market share

As a global banking, insurance and financial services organisation – HSBC were encouraged by their aerospace clients to enter the insurance market to provide an intelligent alternative to the limited choice of brokers that were available to them. In 2002 HSBC Group decided to invest in creating an aerospace broking capability to introduce real competition and challenge the major US brokers. In establishing the Aviation Practice HSBC recruited from the most experienced and innovative practitioners in the market and continues to do so.

Many of HSBC’s most important corporate and investment banking clients use and trust our global insurance network.

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HSBC INSURANCE BROKERS

Our aerospace experience

Our team has been involved in managing/servicing the following clients: • ASA Mexico

• Grupo Aeroporto Pacifico

• Airod

• BAE

• French Airports

• Panasonic Aviation

• Superior Air Parts

• ATC Lasham UK

• 3M

• De Havilland

• CAV Aerospace UK

• Equity Aviation

• Rolls Royce

• Flight Safety International

• ASUR

• DENEL

• Vietnam Airports (Noi Bai)

• Dassault

The HSBC Aviation Practice has a diverse Aerospace capability – secured from a world wide experience base. A focus on our technical achievements – we have an aerospace industry centric capability.... Recently the Gulf Consortium Committee (GCC) asked HSBC Aviation (as co lead broker) to consider and prepare a Report on the use of composite materials in aircraft manufacture and the effect this may have on potential claims experience. Our final Report was then presented to the GCC members and the following brokers (Marsh, Aon and Willis). Further, the Report went on to include the liability issues resulting from a post aircraft impact fire. HSBC were also specifically invited by Airclaims to a seminar on this subject with Boeing.

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Technical servicing support

2

Core additional services

3

Claims handling experience

4

Aviation Risk Management

5

Specific additional services

HSBC INSURANCE BROKERS

1

1. Technical servicing support Our technical servicing support team will provide advice on all aspects of cover, contract agreements and aviation insurance regulations around the world in support of Saab. This would include: • Insurance market clauses

Regular Publications – Broking Matters is a monthly electronic publication produced by HSBC which is available to our client’s covering a wide range of risk and

• Ground handling and related supply services

insurance related topics to keep you fully appraised of new

• Aircraft maintenance

developments, products and legal and regulatory changes.

• Crew training/Aircraft ferry flights • EU Initiatives/ Rome Convention • Terrorism Risk conventions

Marketing, Communications and Research (MCR) – Our MCR team are responsible for collection, analysis and distribution of information to our clients

• IATA standard contract development • Minimum liability limits eg Germany, Hong Kong etc

2. Core additional services Training – at HSBC we consider any opportunity to share knowledge with our clients an investment. As part of our service package we provide structured aviation risk and insurance training courses tailored to individual client needs. Saab have already benefited from various seminars and training courses.

MCR team members drawn on their diverse experience to offer a multi-disciplinary approach: • Business analysis • Insurance and Reinsurance • Captive management • Marketing and PR We provide information to our clients on areas including the following: • Aerospace Liability analysis

Safety/Liability Programmes – it is the practice of HSBC to seek a contribution from insurers to a client’s safety and liability programmes and upon re-appointment would seek to discuss the best way to engage here.

• Liability limit review • Regional analysis • Market forecasts/conditions • Aerospace industry news

Passport – has been designed for risk and insurance managers to collaborate with their global brokers on multinational insurance information. It acts as a key tool to ensure control, co-ordination and consistency in global service delivery and cover. Passport is also a global e-communication platform. It will enable you to monitor your global service proposition from wherever you are in the world.

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HSBC INSURANCE BROKERS

Our claims performance for Saab 2003 – 2009:

Claims management experience Our Claims Management team, led by Simon Bredin, will manage all of Saab’s claims requirements ensuring fast and efficient claims finalisation and payment. Our claims team will support Saab needs with: • Claims Handling Procedure Manuals (CHPM) • Past Claims Audits • Ongoing Claims reviews • Negotiation and Set-up of Claims Funds

HSBC agreed to take on the handling of 30 open

• Negotiation and Set-up of Settlement Authorities

claims dating back to 1996. We have now successfully

• Claims seminars/training

concluded all of these files.

The Claims team utilizes the specialist knowledge of:

We inherited a testing position on the Lansen

Peter Mills who joined HSBC from Lloyd’s Aviation

reinsurances from Marsh and have had positive success

Department where he was Managing Director for eight

on the 2000, 2001 and 2002 years. With work still to be

years and;

done to re-build the 1993 – 1999 policies. Dale Bolton who previously worked for 12 years as Hawker Pacific has proved a challenging client for our

assistant manager at Lloyd’s Aviation Claims Centre.

claims team. With this said, we have achieved a number

Further, Dale has specific responsibility for the Hawker

of excellent commercial settlements for Hawker Pacific.

Pacific part of the program.

Saab submitted a claim under the 2002 policy for some

HSBC has experience of working with all of the major

satellite parts that became delaminated in the testing

law firms and loss adjustors, enjoying an outstanding

stage. The work was carried out under a sub-contract

professional reputation and relationship with these

with a Saab subsidiary. Due to a number of exclusions

organisations.

involving subsidiaries and space products, we needed an inventive solution here! Working with Saab’s Risk

Our claims team have been involved in some of the largest

Manager this was achieved.

and most complex claims in aviation history:

Saab submitted a claim under the 2004 policy for a Total Loss of a Saab 340. The aircraft was returned off-lease, with ten years of accelerated corrosion. After extensive negotiations with Global and the following insurers, we finally got this paid in full as a Total Loss with a single date of loss.

1. Saudi Arabian Airlines – Riyadh 2. Indian Airlines – Bangalore

An emergency procedures manual and supporting presentations were provided to several sub-divisions within Saab. 1. China Airlines – Nagoya We have successfully coordinated a full products

2. Airbus Hull claim – Toulouse (US$ 110m)

integrity review at Saab, with both UK and US law firms, maximising the use of insurance policy allowance. HSBC conducts an annual claims review on site in Sweden. Supported by further visits as required.

1. Multiple ATP’s damaged by Hail – Zaragoza 2. Air France – Concorde. 3. Qantas BAE 146 – Cabin Air contamination.

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1. Hispasat 1 – Failure during early orbit and testing 2. Hispasat 2 – Failure during early orbit and testing

non-marine insurance programmes. • Acts as our industry focused specialist advising our aerospace client’s globally

3. Westar 4 and 5 – Failure of satellite before life

HSBC also have a broad range of competencies with

expectancy.

specialists in fields including:

Aviation Risk Management Within the HSBC Aviation Practice we have available the unique skills and capability of a former airline risk manager from British Airways – Adrian Acres – to offer professional

• Physical Risk Engineering • E-commerce and Cyber risks • Ergonomics/Back to work strategies • Environmental Risks and Regulation

risk management advice on all aspects of aerospace

• Crisis Management/Contingency Planning

operations. In addition, he will co-ordinate the wider

• Business Continuity/Interruption Risks

resources and capabilities of HSBC and their consultants to

• Supply chain risks

support Saab.

Adrian Acres – Risk Management Director • During a 25 year career at British Airways, Adrian was

Specific additional services Strategic Risk Consulting – uniquely our competencies vary from business continuity planning to derivatives to

involved in providing insurance and risk advisory services

insurance. We have the capability to synthesize concepts

to airlines that made up the one world alliance within the

and products from the insurance and banking worlds to

British Airways Programme.

produce a solution tailored to each client’s particular needs.

Key achievements include • Risk Management Involvement with many of the worlds

HSBC INSURANCE BROKERS

Space claims:

HSBC can help with the optimisation of a client’s Risk and Capital management by:

largest airports; including: • JFK – New York (T4) • Atlanta – Georgia (Fuel Farm) • Heathrow / Gatwick / Birmingham International / Manchester • Responsible for the aviation insurance programmes of the British Airways Franchise airlines. • Insurance adviser to the IATA airline and ground handling committees for the 1998 and 2004 IATA AHM 810 agreements – Article 8.5

Looking at risks holistically through Enterprise Risk Management to help make better decisions over how risks are treated, either through hedging, risk transfer or risk retention. • More efficient use of risk mitigation techniques such as Physical loss control, Business Continuity Planning and Crisis management. • Optimisation over the deployment of capital and levels of risk retention.

• Had specific responsibility for the BA Group’s aviation and

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HSBC INSURANCE BROKERS

• Capability to offer various financial instruments for large,

• Quality/spread of assets

potentially catastrophic risks We would be delighted to discuss these services in more detail with Saab.

Insurance entity/carrier security We place insurer/carrier security at the centre of our

Non-financial • Company profile • Country profile • Ownership & Management • Business segment

business process, in order that our employees and clients

• Reinsurance arrangements

are able to select the insurers/carriers who are most suited

• Rating

to their individual requirements.

• General intelligence

Our Insurance Carrier Security Director co-ordinates the following activities: • Review of approved carriers – including Lloyd’s of London

• Internal records HSBC Insurance Brokers cannot guarantee that an insurance company/carrier will be able to pay claims

• Review of all potential new carriers

In the even that it ever became necessary to replace any

• Decision on those carriers with whom we conduct

individual insurers for Saab, we would discuss the best and

business • Data sourcing from a wide range of public information sources – including the main rating agencies • Client query/advice service including information on distressed companies

Analysis of insurance entities/carriers [Through rating agencies]

most practicable solution with you at the time.

Other value added services Other insurance products that Saab may wish to consider include inter alia: • Loss or Use • Political Risks • Lease payment default

Financial • Premium volumes • Claims performance • Investment performance • Expense ratios • Overall profitability • Solvency ratios • Technical reserves

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• K&R • Directors & Officers • Global Property Insurance • Employers Legal Liability / WCA We would be happy to discuss any of these in more detail if required.


HSBC INSURANCE BROKERS

Saab account service team Peter Mills Account Director

Morley Speed Head of Complex Risks

Brian Moore Saab Client Advocate

Graham Hersey Service Director

Simon Bredin Claims Director

Paul Flack Assistant Service Director

Dale Bolton Assistant Claims Director

Jason Humphreys Marketing / Broking Director

Richard West Assistant Marketing / Broking Director

Chris Tranter International Marketing Director James Whiter Assistant International Marketing

Adrian Acres Risk Management Director

Sharon West Premium / Account Reconciliation

Michael Bristow Research, Analysis and Marketing Director

Maureen Stevenson Assistant Premium / Account Reconciliation

Coran Barford Assistant Research, Analysis and Marketing Director

Summary CV’s for the key members of our team can be found in Appendix A.

HSBC – Saab: a partnership HSBC’s Aviation Practice has specialised in offering a dedicated, cost effective and personalised service aligned to their major clients buying needs.

Our on going approach will continue to keep Saab as a “Premier” client guaranteeing that you will be treated in a bespoke manner and not disappear into the general client portfolio – a common problem for our competitors.

It is this special treatment that bonds us to our clients and

The Saab Team have all worked closely together in the past,

has contributed to our success.

working on numerous projects/accounts involving clients in Europe, The Far East, Asia and the UK.

Saab’s business is highly valued by our Aviation Practice and was identified as a “premier” client within our major

Individually they bring complementary insurance and ‘hard’

client portfolio.

business skills to the team. Morley Speed, Peter Mills, Brian Moore and Graham Hersey have all held leadership

“Premier” clients are protected from the day to day

positions within the industry. Their combined management

interruptions and delays in service by having dedicated

of the Saab account, will ensure that the highest standards

personnel assigned to their business.

of industry knowledge, professionalism and competitive advantage/pricing are consistently achieved. 15


HSBC INSURANCE BROKERS

Programme renewal strategy – 2009 How can HSBC and Saab create real market competition in 2009? Currently all possible leading/quoting insurers of ‘major’ Manufacturers/Products accounts are either committed to the Saab Programme or are not involved by choice – due to the highly competitive level of Saab’s

C HSB

H S BC

terms of demonstrating that Saab had

ark et

Whilst this situation is satisfactory in

t e k Mar

M

premium.

the most competitive pricing possible in 2008 and that HSBC performed; we still need to be clear that aggressive competition again needs to be generated in 2009.

HSB C

With the above said HSBC have devised a unique and innovative renewal

Market

strategy for Saab that will seek to confront, challenge and test the market and the current programme structure.

The Saab ‘Counter Cyclical Strategy’ (SCCS) – a strategy for a changing world The SCCS strategy will challenge prevailing aviation market conditions and seek to simultaneously take advantage of current global economic factors.

Macro economic conditions

Micro aviation market conditions

COMPETITION

Consistent market capacity

Reducing aerospace premium base

COMPETITION

COMPETITION

COMPETITION The same number of insurers are competing for a reducing premium base 19


HSBC INSURANCE BROKERS

Global recession: • MRO’s – reduced turnover and sales worldwide • Airlines – over 37 airlines ceased flying in 2008; with more to fail in 2009 • Airport/ATC – global passenger numbers falling • Ground Handlers/Service Providers – reduced activities tracking airline/airport down turn The SCCS Advantage – as insurers face reduced premium income generation as a result of aerospace/airline exposure reductions, they will have to compete with their co insurers to increase their shares just to maintain their existing premium income levels. HSBC will exploit this convenient anomaly to Saab’s benefit.

Our Saab ‘Counter Cyclical Strategy’ (SCCS) will have eight distinct phases (1-2-3-4-5-6-7-8).

1 Quoting/Lead Markets 2 AIG 3 CV Starr 4 GAUM

5 Vertical Marketing

6 Place Renewal

7 Documentation Phases 1-5 will stimulate, develop and exploit insurer competition. Each phase logically feeding in to the next driving a continuous competitive process. Phases 6-8 will then formalise the negotiation process and conclude the 2009 renewal transaction.

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8 Post renewal report


HSBC INSURANCE BROKERS

1. Quoting/lead markets – negotiate with and simultaneously “multi leverage” • Firstly, all non committed insurers will be approached and asked to quote to lead or to quote for their own share – results will then be logged in the marketing matrix Mitsui – Amlin – ACE – CV Starr – QBE • Secondly, all those markets currently committed will be approached and asked to quote to lead or for their share – again, results will be logged and entered in to the marketing matrix Allianz – AIG (see below)

Market A

Price

e

Pric

e

Pric

Market B

Price

Market C

Price

DRIVING PRICE DOWN

Price

COMPETITION

Once the above results have been analysed and competitive outcomes maximised, we move to the next phase.

2. AIG – exploit current vulnerability • Whilst AIG remains a central market to clients world wide, they are presently uniquely vulnerable to client/

3. CV Starr – determine appetite for involvement • The recruitment of Jim Herbert from AIG (where he

broker pressure given the turmoil surrounding their future

was Aerospace SVP) to set up an enhanced Aerospace

• This vulnerability should create a defensive reaction from

Underwriting capability at CV Starr presents a ‘one off’

AIG – which can then be swiftly turned in to competition

opportunity to create competition for two distinct reasons

• Currently AIG have a 7.5% share at lead terms

1. CV Starr need to develop market share and income quickly

• We propose that AIG are forced to prove their value to

to pay for their new team – so will be competitive and

Saab by offering a ‘standalone’ vertical price lower than the lead (perhaps by a pre agreed percentage, or at the very minimum split their line 50% lead 50 % at vertical X% off the lead) • As well as this aggressive approach we may also offer them an incentive, in the form of a chance to increase their 7.5% line to 10% (at vertical terms of course)

2. The new team is actively seeking to take business and shares from AIG who they see as vulnerable

4. GAUM – begin formal negotiations with lead • Negotiations with GAUM will commence from a position of knowledge, intelligence and strength • HSBC will be able to purposefully direct GAUM on our renewal coverage objectives and pricing targets

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HSBC INSURANCE BROKERS

• If at any time during the negotiations GAUM begin to fall short of our requirements on the Saab renewal, we will immediately introduce the other options we have. Thereby bringing negotiations back to where we want them to be and not allowing GAUM to dictate events • HSBC will again be focused and decisive in our negotiations with GAUM in 2009 GAUM must be put under pressure and competition created – thereby building up momentum and pressure on them. HSBC will be adopting an overtly more aggressive and confrontational style in 2009, which reflects our growing market share, practice size and influence; as well as our more experienced and aggressive management team. HSBC’s clear objective will be to confidently guarantee to Saab that the most competitive renewal pricing possible has been achieved from the global insurance market.

5. Vertical marketing – London and international markets • The London broking team will approach all possible existing (and new) following markets and make them

8. Post renewal report • This will be prepared and delivered to Saab in London or Linkoping at Saab’s choice

Seeing beyond the horizon – Positioning for the future….

compete for their renewal share / a new share by offering

Whilst the above strategy will take advantage of all possible

vertical prices

opportunities to drive down pricing in 2009, we will also be

• The international broking team will approach all possible existing (and new) following markets and make them compete for their renewal share / a new share by offering vertical prices • Once negotiations are exhausted and the marketing

positioning Saab for what may be difficult buying conditions in 2010 and beyond. With the above mantra in mind, we also share the following renewal sub strategies which will form part of our overall renewal strategy on Saab.

matrix is complete, we will mathematically calculate the best possible placing formula and move to the next

1. Longer term policy – currently accounts including BAE

phase.

and Bombardier have longer term deals which we are

6. Place renewal – allocate participations • Formal renewal offers will be made to all London and

2. Primary Policy on a longer term basis; with an excess

International Markets who have earned the right to

layer on a shorter term basis to circumvent certain insurer

participate in the Saab programme – in conjunction with

restrictions.

the wishes of Saab • Advice will be sent to all insurers who have failed to renew or secure a new share of the Saab programme

7. Documentation • Our 2009 renewal documentation will be prepared and sent to Saab’s Risk Management Department in the required format

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evaluating relative to Saab.

3. Placement of the Hawker Pacific exposure on a standalone primary basis (in London or with QBE in Australia) and an excess basis within the main Saab program. 4. Work with Saab to review the values of your leased aircraft; as SLV reductions may translate in to premium savings.


HSBC INSURANCE BROKERS

Lansen

Lansen – Saab Group captive

For the period 2003 to 2007 Lansen participated in the Aviation

Saab Group are 100% owners of a captive insurer, Lansen

each year (but USD 307,500 for 2007). Whilst losses have eroded

Försäkrings AB. Historically, Lansen took a vertical share in the Hull and Liability programme, which was protected by reinsurance. In 2008 this arrangement ceased so currently there is no captive involvement. Given the volatility of the exposure (high severity / low frequency) we believe that generally this is a sensible decision. If we take the approach of pricing this volatility relative to Saab’s Balance Sheet it is clearly beneficial to transfer this exposure to the insurance market. In crude terms, the cost of reinsurance (c.US$ 3.3M) against the maximum limit (US$ 1Bn) implies a cost of capital (0.33%) which makes risk transfer a compelling solution. We are also conscious of the general economic and financial environment whereby capital is in limited supply and it is certainly not a ‘free good’. This supports the view that it would not be sensible to retain any more volatility on Saab’s Balance Sheet. However, we must not overlook the exposures which are currently retained by Saab, notably the Deductibles and the aggregate retentions held by Lansen for the period 2003–2007 inclusive. These exposures may be either actively managed (via the captive) or passively absorbed within the Group Balance Sheet. In general terms our recommendations would be to integrate these retained Deductibles within the Captive, provided the volatility thereby imported can be absorbed within the rest of the portfolio (which we would assume to be concentrated on low severity/high frequency exposures). We would recommend that the diversification benefit should also be assessed since, given its non-correlated nature, the Hull risk may provide added value in portfolio terms. At the same time this analysis may suggest that some form of Deductible ‘buy-back’ may provide value to Saab; by providing risk transfer at economic terms (on the metric of capital value) and providing further added value to the Captive (also on the metric of capital value).

programme retaining the first USD500,000 in the aggregate for some of these aggregates there is still potential for further liability claims arising from occurrences during these policy years. We would therefore suggest Lansen purchases a policy to protect the current balance of retention which is currently in the area of USD1,800,000 over all years. We have reinsurers who are willing to provide favourable terms for this cover if it is required. Our Actuarial Department will be able to do the required analysis (subject to receipt of the full information) and we would also draw attention to the fact that HSBC is a major player in the Captive Sector globally. In summary, we are very much aware of the high profile and expertise of risk management within Saab. Therefore the use of a Captive is recognized as being the culmination of a rational and financially robust process, rather than as a ‘dust bin’ for ‘difficult risks’ or a supposed ‘cash low’ for high volatility risks – as long as the frequency remains low. Given the background we would suggest a financial / actuarial approach to assessing the options of managing the retained Deductible exposures within the Captive, possibly in combination with further risk transfer.

A possible use of Lansen would be to use it as a strategic marketing vehicle. HSBC could inform the insurers that 20% (for example) of the program in 2009 must involve Lansen. This will act to “squeeze” the direct order and potentially deliver two benefits; 1. Insurers who want to only write the direct order will be forced to be more competitive in terms of price. 2. Encourage insurers who want to maintain / increase their share to support the Lansen order or face disappointment We would like to discuss the relative merits here with Saab.

24


HSBC INSURANCE BROKERS

A final word

We reiterate our opening comments – Saab AB and HSBC have a longstanding business relationship of which we are immensely proud. The opportunity to continue that relationship by winning the tender has been fully embraced by the HSBC Saab team and to that end we hope we have more than demonstrated this intention to Saab AB through our response to this tender. We look forward to hearing from you and on behalf of our Aviation Practice Team, we once again thank Saab AB for inviting us to be part of this tender process. Graham Hersey Senior Technical Executive HSBC Aviation Practice.

26


HSBC INSURANCE BROKERS

Appendices A. Service Team – key members

Peter N R Mills Head of Practice – Aviation HSBC Insurance Brokers Limited Bishops Court, 27-33 Artillery Lane, London Direct Line: + 44 (0) 207 661 2919 Fax: + 44 (0) 207 661 2933 Mobile: + 44 (0) 7899 895 180 Email: peter.n.r.mills@hsbc.com

Graham Hersey Senior Technical Executive HSBC Insurance Brokers Limited Bishops Court, 27-33 Artillery Lane, London Direct Line: + 44 (0) 207 661 2823 Fax: + 44 (0) 207 661 2933 Mobile: + 44 (0) 7786 524 423 Email: graham.hershey@hsbc.com

Jason Humphreys Senior Broking Executive – Aviation HSBC Insurance Brokers Limited Bishops Court, 27-33 Artillery Lane, London Direct Line: + 44 (0) 207 661 2857 Fax: + 44 (0) 207 661 2933 Mobile: + 44 (0) 7795 145 170 Email: jasonhumphreys@hsbc.com

Name:

Peter N R Mills

Position:

Head of Practice – Aviation

Role:

Co-ordination of all aspects of Saab relationship

Biography: Peter joined HSBC October 2005 following an extensive career in the aviation insurance industry spanning some 30 years. During which he spent time with Sedgwick Aviation (now Marsh) as Director with responsibility for their Far East Business and latterly with Lloyd’s running the loss adjustors Lloyd’s Aviation Department (LAD). Peter took up the role as practice head in 2008 and prior to that he was the Aviation Practice’s Chief Operating Officer and Development Director.

Name:

Graham Hersey

Position:

Senior Technical Executive

Role:

Dealing with all technical aviation related insurance work

Biography: Graham Hersey is our Senior Technical director. He has thirty years aviation insurance experience Graham joined us from Miller Insurance having previously been with Aon.

Name:

Jason Humphreys

Position:

Senior Broking Executive– Aviation

Role:

Co-ordination of HSBC’s marketing strategy on the Saab account

Biography: Jason Humphreys joined HSBC in 2006. Prior to this he was a Director within the Aviation Division at Jardine Lloyd Thomson. He has over 15 years experience with a specialist background in North/South American aerospace business and has travelled extensively. Jason has had responsibility for the clients including the following Cintra Group, Sky Chefs, BRA Transportes Aereos, MK Airlines, Pegasus.

27


HSBC INSURANCE BROKERS

Richard West Senior Broking Executive HSBC Insurance Brokers Limited Bishops Court, 27-33 Artillery Lane, London Direct Line: + 44 (0) 207 661 2894 Fax: + 44 (0) 207 661 2933 Mobile: + 44 (0) 7717 483 958 Email: richardwest@hsbc.com

Adrian Acres Director – Aviation Risk Management HSBC Insurance Brokers Limited Bishops Court, 27-33 Artillery Lane, London Direct Line: + 44 (0) 207 661 2833 Fax: + 44 (0) 207 661 2933 Mobile: + 44 (0) 7767 003 753 Email: adrianacres@hsbc.com

Simon Bredin Claims Director HSBC Insurance Brokers Limited Bishops Court, 27-33 Artillery Lane, London Direct Line: + 44 (0) 207 661 2891 Fax: + 44 (0) 207 661 2933 Mobile: + 44 (0) 7717 483 142 Email: simon.bredin@hsbc.com

28

Name:

Richard West

Position:

Senior Broking Executive

Role:

Supporting Jason Humphreys in the marketing of the Saab account

Biography: Richard has more than 26 years in the aviation market. Prior to joining HSBC, Richard worked for Arthur J. Gallagher and had started his career as an Aviation Underwriter at Lloyd’s of London, with responsibility for major airlines and aerospace clients with particular emphasis on United Sates of AMerica. RIchard has specialised in Manufacturers Products and Airports whilst at HSBC.

Name:

Adrian Acres

Position:

Director – Aviation Risk Management

Role:

Adrian is our focus for risk management and would be your point of contact for all matters requiring risk management, advice, support and resources.

Biography: Adrian Acres was Risk Manager at British Airways before joining HSBC in 2004. He brings with him a wealth of Risk Management knowledge gained over twenty five years with BA. He also acted as a risk advisor to the airlines that made up the One World Alliance insured within the British Airways programme

Name:

Simon Bredin

Position:

Claims Director

Role:

Co-ordination of all Aviation Claims activities

Biography: Simon Bredin has spent nearly twenty years dedicated to handling aviation claims issues. He joined us in 2005 from Marsh to become our head of Claims.


HSBC INSURANCE BROKERS

B. Global Office Network

ASIA / PACIFIC AUSTRALIA

THAILAND

CROATIA

IRELAND

OAMPS INSURANCE BROKERS LTD East Melbourne Phone: 61-39-412-1555 Fax: 61-39-412-1601

TRAFALGAR INTERNATIONAL LTD. Bangkok Phone: 66-2-645-1170 Fax: 66-2-645-1180

MAI INSURANCE BROKERS (CROATIA)* Zagreb Phone: 385-1-3664-868 Fax: 385-1-3820-287

ARACHAS CORPORATE BROKERS LTD Dublin Phone: 353-1-213-5000 Fax: 353-1-213-5001

CHINA BEIJING HSBC INSURANCE BROKERS LIMITED* Beijing Phone: 86-10-5166-0028 Fax: 86-10-8518-8861 BEIJING HSBC INSURANCE BROKERS LIMITED GUANGZHOU BRANCH* Guangzhou Phone: 86-20-8328-1101 Fax: 86-20-8328-1522 XIMCO CORPORATION Shanghai Phone: 86-21-5404-5068 Fax: 86-21-6249-1819

HONG KONG HSBC INSURANCE BROKERS (ASIA-PACIFIC) LIMITED Wanchai Phone: 852-2828-7200 Fax: 852-2598-4937

INDIA J.B. BODA & COMPANY PVT. LTD. Mumbai Phone: 91-22-5631-4949 Fax: 91-22-2262-3747

INDONESIA MIR- PT. MITRA, ISWARA & RORIMPANDEY Jakarta Barat Phone: 62-21-530-5888 Fax: 62-21-530-5875

JAPAN CORNES & COMPANY LIMITED Tokyo Phone: 81-3-5730-1650 Fax: 81-3-5730-1624 KYORITSU INSURANCE BROKERS OF JAPAN CO., LTD. Tokyo Phone: 81-3-6811-0361 Fax: 81-3-5919-2931

KOREA

EUROPE / MIDDLE EAST / AFRICA AUSTRIA ASSURANCE PARTNERS Vienna Phone: 43-1-310 13 03 500 Fax: 43-1-310 13 03 505

ARMENIA MAI INSURANCE BROKERS (ARMENIA)* Yerevan Phone: 374-105-274-28 Fax: 374-15-478-83

BELARUS

MAI INSURANCE BROKERS (REPUBLIC OF BELARUS)* Minsk Phone: 375-296-687-848

CYPRUS HSBC INSURANCE SERVICES (CYPRUS) LIMITED* Limassol Phone: 357-25-878100 Fax: 357-25-355869

CZECH REPUBLIC MAI INSURANCE BROKERS (CZECH REPUBLIC)* Prague Phone: 420-222-244-550 Fax: 420-222-244-551

ASCOMA COTE D’IVOIRE* Abidjan Phone: 225-20-300-300 Fax: 225-20-300-301

EQUATORIAL GUINEA

MAI INSURANCE BROKERS (KAZAKHSTAN)* Almaty Phone: 732-729-12-629 Fax: 732-729-16-695

ESTONIA

LATVIA

ASCOMA BENIN* Cotonou Phone: 229-90-07-26-94

MAI INSURANCE BROKERS (ESTONIA)* Tallinn Phone: 372-6271-764 Fax: 372-6271-766

MAI INSURANCE BROKERS (LATVIA)* Riga Phone: 371-731-3433 Fax: 371-727-3566

BERMUDA

FINLAND

HSBC INSURANCE SOLUTIONS (BERMUDA) LIMITED Hamilton Phone: 441-292-7505 Fax: 441-292-1243

IIZI FIRSTBROKERS OY Helsinki Phone: 358-20-7619-220 Fax: 358-20-7619-229

ALLIA INSURANCE BROKERS Antwerp Phone: 32-3-233-19-70 Fax: 32-3-225-12-22

BENIN

BULGARIA MARINS INTERNATIONAL LTD* Varna Phone: 359-52-602-103 Fax: 359-52-602-537

BURUNDI

FRANCE VERSPIEREN GROUP Paris Phone: 33-1-49-64-13-50 Fax: 33-1-49-64-10-23

GABON

ASCOMA CAMEROON* Douala Phone: 237-342-80-80 Fax: 237-342-61-75

MAI INSURANCE BROKERS (GEORGIA)* Tbilisi Phone: 995-32-227012 Fax: 995-92-421778

CENTRAL AFRICAN REPUBLIC

GERMANY

ASCOMA CENTRAFRIQUE* Bangui Phone: 236-61-19-33 Fax: 236-61-44-70

LEUE & NILL GMBH & CO Dortmund Phone: 49-231-5404-0 Fax: 49-231-5404-144

DEMOCRATIC REPUBLIC OF CONGO

GREECE

SINGAPORE

ALLIA INSURANCE BROKERS* Kinshasa Phone: 243-81-700-5034 Fax: 322-70-65940

EUROBROKERS INSURANCE BROKERS S.A. Athens Phone: 3-010-8123800 Fax: 3-010-6140201

HSBC INSURANCE BROKERS (SINGAPORE) PTE LTD Singapore Phone: 65-535-5766 Fax: 65-535-0393

ASCOMA RDC* Kinshasa Phone: 243-997-55-77-00 Fax: 243-997-5-77-00

HUNGARY

TAIWAN

REPUBLIC OF CONGO

ASIAN ALLIANCE RISK SERVICES TAIWAN Taipei Phone: 886-2-2381-8151 Fax: 886-2-2382-5503

ASCOMA CONGO* Pointe Noire Phone: 242-94-27-43 Fax: 242-94-52-27

GOTUACO, DEL ROSARIO & ASSOCIATES, INC. Makati City Phone: 632-888-0001 Fax: 632-888-0009

* Branch of Partner

KAZAKHSTAN

ASCOMA GUINEE EQUATORIALE* Malabo Phone: 240-09-81-27 Fax: 240-09-99-88

BELGIUM

GEORGIA

PHILIPPINES

GPA PULSAR S.R.L. Milan Phone: 39-02-67812-1 Fax: 39-02-67812-540

IVORY COAST

CAMEROON

TRADEWINDS INTERNATIONAL INSURANCE BROKERS SDN BHD Kuala Lumpur Phone: 603-2612-8686 Fax: 603-2732-1961

ITALY

DAHLBERG ASSURANCE BROKERS A/S Copenhagen Phone: 45-33-11-48-28 Fax: 45-33-70-44-75

ASCOMA BURUNDI* Bujumbura Phone: 257-22-25-64-23

MALAYSIA

LEADERIM INSURANCE BROKERS (1995) LTD. Ramat Gan Phone: 972-3-753-0530 Fax: 972-3-575-0362

DENMARK

ASCOMA GABON* Libreville Phone: 241-77-29-09 Fax: 241-76-04-39

HSBC INSURANCE BROKERS (KOREA) LIMITED* Seoul Phone: 822-20-04-08-90 Fax: 822-20-04-08-95

ISRAEL

MAI CENTRAL EASTERN EUROPE LTD. Budapest Phone: 36-1-461-0540 Fax: 36-1-461-0541

LEBANON IBC, MIDDLE EAST SARL* Beirut Phone: 961-4-724-762 Fax: 961-4-724-763

LITHUANIA MAI INSURANCE BROKERS (LITHUANIA)* Vilnius Phone: 370-521-05383 Fax: 370-521-05384

MADAGASCAR ASCOMA MADAGASCAR* Antananarivo Phone: 261-20-22-231-62 Fax: 261-20-22-227-85

MALTA HSBC INSURANCE MANAGEMENT (MALTA) LIMITED* Blata L-Bajda Phone: 356-2293-8608 Fax: 356-2293-8691

MAURITANIA ASCOMA MAURITANIE* Nouakchott Phone: 221-889-09-00 Fax: 221-889-09-90

MOLDOVA MAI INSURANCE & REINSURANCE (MOLDOVA)* ERVAX GROUP Chisinau Phone: 373-22-52-10-11 Fax: 373-22-52-10-11

MONACO ASCOMA AC Monte-Carlo Phone: 377-97-97-22-04 Fax: 377-97-97-22-05

Rev. 04/08/08

29


HSBC INSURANCE BROKERS

Assurex Global Partners Page 2 MOROCCO

SOUTH AFRICA

COLOMBIA

NEW BRUNSWICK

ACECA Casablanca Phone: 212-22-23-7575 Fax: 212-22-25-9357

GIB INSURANCE BROKERS (PTY) LTD. Johannesburg Phone: 27-11-483-1212 Fax: 27-11-728-4426

CORRECOL - CORREDORES COLOMBIANOS DE SEGUROS S.A. Bogotá Phone: 571-530-0053 Fax: 571-530-8495

WILSON INSURANCE LTD. Fredericton Phone: 506-458-8505 Fax: 506-450-8691

SPAIN

DOMINICAN REPUBLIC

ALKORA EBS S.A. VERSPIEREN GROUP Madrid Phone: 34-91-417-4850 Fax: 34-91-837-4828

ROS Santo Domingo Phone: 809-567-1021 Fax: 809-562-4764

NETHERLANDS MEEÙS ASSURANTIËN B.V. Amsterdam Phone: 31-20-301-7917 Fax: 31-20-301-7986

NIGERIA AFN BROKERS* Lagos Phone: 234-1-497-24-75 Fax: 234-1-497-24-76

NORWAY NORWEGIAN BROKER AS Lysaker Phone: 47-23-89-7389 Fax: 47-67-59-1022

OMAN RISK MANAGEMENT SERVICES LLC* Ruwi Phone: 968-704-004 Fax: 968-798-423

POLAND MAI INSURANCE BROKERS (POLAND)* Warsaw Phone: 48-22-560-5750 Fax: 48-22-560-5756

PORTUGAL MEDIATOR - SOC. CORRETORA DE SEGUROS, S.A. Lisbon Phone: 351-21-311-32-10 Fax: 351-21-311-32-11

ROMANIA MAI BROKER DE ASIGURARE SRL (ROMANIA)* Bucharest Phone: 40-21-321-3471 Fax: 40-21-321-3454

RUSSIA AL INSURANCE SERVICES Moscow Phone: 7-495-299-9176 Fax: 7-495-787-1195

RWANDA ASCOMA RWANDA* Kigali Phone: 250-55-10-06-92

SAUDI ARABIA IBC SAUDI GENERAL INSURANCE* Jeddah Phone: 966-2-6512056 Fax: 966-2-6511720

SODERBERG & PARTNERS INSURANCE CONSULTING KB Stockholm Phone: 46-8-410-267-00 Fax: 46-8-650-17-70

SWITZERLAND GWP INSURANCE BROKERS Zurich Phone: 41-44-317-9541 Fax: 41-44-318-9541 IBC INSURANCE BROKING AND CONSULTING SA Lausanne Phone: 41-21-614-30-70 Fax: 41-21-614-30-79

TUNISIA

MEXICO LORANT MARTINEZ SALAS Y COMPANIA Mexico City Phone: 52-55-3093-6700 Fax: 52-55-3093-6788

ALABAMA

PANAMA KAM Y ASOCIADOS, S.A. Colon Phone: 507-441-0555 Fax: 507-441-5964

PERU

PUERTO RICO

STRATEJI SIGORTA VE REASURANS BROKERLIGI A.S. Istanbul Phone: 90-216-469-11-11 Fax: 90-216-469-03-67

CARRION, LAFFITTE & CASELLAS, INC. San Juan Phone: 787-641-2738 Fax: 787-641-2679

UKRAINE

URUGUAY

MAI INSURANCE BROKERS (UKRAINE)* Kiev Phone: 380-44-236-9047 Fax: 380-44-236-9048

MAKLER ROU S.A.* Montevideo Phone: 59-82-902-0058 Fax: 59-82-902-0074

UNITED KINGDOM HSBC INSURANCE BROKERS LTD. London Phone: 44-20-7247-5433 Fax: 44-20-7661-2565

LATIN AMERICA / CARIBBEAN ARGENTINA

ASCOMA SENEGAL* Dakar Phone: 221-889-09-00 Fax: 221-889-09-90

MAKLER S.A. Buenos Aires Phone: 54-11-4878-6255 Fax: 54-11-4312-6976

SERBIA

BRAZIL

MAI INSURANCE BROKERS (SERBIA)* Belgrade Phone: 381-11-313-0780 Fax: 380-11-313-0731

ADAMS & PORTER SOCIEDADE DE CORRETAGEM DE SEGUROS LTDA. São Paulo Phone: 55-11-5504-5258 Fax: 55-11-5505-0700

SLOVAK REPUBLIC

CHILE

MAI INSURANCE BROKERS (SLOVAK REPUBLIC)* Bratislava Phone: 421-2-5932-4382 Fax: 421-2-5296-6490

LILIENFELD, CORREDORES DE SEGUROS LIMITADA Santiago Phone: 562-757-4300 Fax: 562-757-4360

GROUPE VIAU, INC. Montreal Phone: 514-723-9262 Fax: 514-723-9273

UNITED STATES

TURKEY

HSBC INSURANCE BROKERS LTD. Dubai Phone: 971-4-3242600 Fax: 971-4-3241727

QUEBEC

RISK MANAGERS NICARAGUA* Managua Phone: 809-567-1021 Fax: 809-562-4764

GABEL CORREDORES DE SEGUROS SAC Lima Phone: 51-1-460-9090 Fax: 51-1-261-4138

UNITED ARAB EMIRATES

FRASER & HOYT INSURANCE LTD. New Glasgow Phone: 902-752-8451 Fax: 902-755-2005

NICARAGUA

GEPAR Tunis Phone: 216-1-288-105 Fax: 216-1-798-946

SENEGAL

* Branch of Partner

30

SWEDEN

NOVA SCOTIA

VENEZUELA MAKLER SOCIEDAD DE CORRETAJE DE SEGUROS, C.A. Caracas Phone: 58-212-907-3211 Fax: 58-212-975-2237

COBBS, ALLEN & HALL, INC. Birmingham Phone: 205-414-8100 Fax: 205-414-8105 THAMES BATRÉ MATTEI BEVILLE & ISON Mobile Phone: 251-473-9000 Fax: 251-473-9010

ARIZONA THE MAHONEY GROUP Casa Grande Phone: 520-836-7483 Fax: 520-836-6681

CALIFORNIA BARNEY & BARNEY, LLC San Diego Phone: 858-457-3414 Fax: 858-452-7530 BOLTON & COMPANY Pasadena Phone: 626-799-7000 Fax: 626-441-3233 DIBUDUO & DEFENDIS INSURANCE BROKERS, LLC Fresno Phone: 559-432-0222 Fax: 559-432-0935 WOODRUFF-SAWYER & CO. San Francisco Phone: 415-391-2141 Fax: 415-989-9923

COLORADO

NORTH AMERICA CANADA

VAN GILDER INSURANCE CORPORATION Denver Phone: 303-837-8500 Fax: 303-831-5295

ALBERTA

CONNECTICUT

PHOENIX GROUP MANAGEMENT CORPORATION Edmonton Phone: 780-482-6936 Fax: 780-488-7077

SMITH BROTHERS INSURANCE, INC. Glastonbury Phone: 860-652-3235 Fax: 860-652-3236

BRITISH COLUMBIA SHAW SABEY & ASSOCIATES LTD. Vancouver Phone: 604-689-2441 Fax: 604-331-0662

MANITOBA RYAN GATEWAY INSURANCE BROKERS INC. Winnipeg Phone: 204-985-8400 Fax: 204-947-3524

DELAWARE LYONS COMPANIES Wilmington Phone: 302-658-5508 Fax: 302-658-1253

DISTRICT OF COLUMBIA EARLY, CASSIDY & SCHILLING, INC. Washington Phone: 301-948-5800 Fax: 301-948-5959

Rev. 04/08/08


FLORIDA

LOUISIANA

NEW MEXICO

SOUTH DAKOTA

LANIER UPSHAW, INC. Lakeland (Tampa Area) Phone: 863-686-2113 Fax: 863-683-7892

GILLIS, ELLIS & BAKER, INC. New Orleans Phone: 504-581-3334 Fax: 504-587-0766

DANIELS INSURANCE AGENCY, INC. Albuquerque Phone: 505-766-9676 Fax: 505-766-9679

LASSITER-WARE, INC. Leesburg (Orlando Area) Phone: 352-787-3441 Fax: 352-365-0586

LOUISIANA CO. / QUERBES & NELSON Baton Rouge Phone: 225-383-4761 Fax: 225-389-0806

NEW YORK

HOWALT-McDOWELL INSURANCE, INC. Sioux Falls Phone: 605-339-3874 Fax: 605-339-3620

OSWALD TRIPPE AND COMPANY, INC. Fort Myers Phone: 239-433-4535 Fax: 239-433-4148

MARYLAND

SEITLIN Miami Phone: 305-591-0090 Fax: 305-640-9703

GEORGIA THE MCCART GROUP Atlanta Phone: 770-232-0202 Fax: 770-232-9202

ILLINOIS

RIGGS, COUNSELMAN, MICHAELS & DOWNES, INC. Baltimore Phone: 410-339-7263 Fax: 410-339-7234

MASSACHUSETTS FRED C. CHURCH, INC. Lowell Phone: 978-458-1865 Fax: 978-454-1865

MICHIGAN

THE HORTON GROUP, INC. Chicago Phone: 708-845-3000 Fax: 708-845-3001

KAPNICK INSURANCE GROUP Southfield (Detroit Area) Phone: 248-352-4455 Fax: 248-352-4466

INDIANA

MINNESOTA

MJ INSURANCE, INC. Indianapolis Phone: 317-805-7500 Fax: 317-805-7515

RJF AGENCIES, INC. Minneapolis Phone: 763-746-8000 Fax: 763-746-8305

IOWA

MISSISSIPPI

COTTINGHAM & BUTLER, INC. Dubuque Phone: 563-587-5000 Fax: 563-583-7339

FOX-EVERETT, INC. Jackson Phone: 601-607-5500 Fax: 601-981-9243

LaMAIR-MULOCK-CONDON CO. West Des Moines Phone: 515-244-0166 Fax: 515-244-9535

MISSOURI

KANSAS HAAKE COMPANIES Kansas City Phone: 913-491-1999 Fax: 913-906-0088 THE IMA FINANCIAL GROUP, INC. Wichita Phone: 316-267-9221 Fax: 316-266-6254

KENTUCKY NEACE LUKENS Louisville Phone: 502-894-2100 Fax: 502-894-8602

THE DANIEL AND HENRY CO. St. Louis Phone: 314-421-1525 Fax: 314-444-1704

MONTANA PAYNE FINANCIAL GROUP, INC. Missoula Phone: 406-728-2910 Fax: 406-721-4241

NEVADA CRAGIN & PIKE, INC. Las Vegas Phone: 702-877-1111 Fax: 702-258-3394

NEW HAMPSHIRE THE ROWLEY AGENCY, INC. Concord Phone: 603-224-2562 Fax: 603-224-8012

FRENKEL & CO., INC. New York Phone: 212-488-0200 Fax: 212-488-1800 HAYLOR, FREYER & COON, INC. Syracuse Phone: 315-451-1500 Fax: 315-451-5542

NORTH CAROLINA SENN DUNN Greensboro Phone: 336-272-7161 Fax: 336-273-7284

TENNESSEE CRICHTON, BRANDON, JACKSON & WARD, INC. Nashville Phone: 615-383-9761 Fax: 615-383-4628 LIPSCOMB & PITTS INSURANCE LLC Memphis Phone: 901-321-1000 Fax: 901-321-1125

TEXAS

OHIO

CATTO & CATTO LLP San Antonio Phone: 210-222-2161 Fax: 210-222-1618

BROWER INSURANCE AGENCY, LLC Dayton Phone: 937-228-4135 Fax: 937-228-9108

ROACH HOWARD SMITH & BARTON Dallas Phone: 972-231-1300 Fax: 972-231-1368

OSWALD COMPANIES Cleveland Phone: 216-367-8787 Fax: 216-241-4520

JOHN L. WORTHAM & SON, L.P. DBA WORTHAM INSURANCE & RISK MANAGEMENT Houston Phone: 713-526-3366 Fax: 713-522-3056

SCHIFF, KREIDLER-SHELL, INC. Cincinnati Phone: 513-977-3100 Fax: 513-977-3193

OKLAHOMA NORTH AMERICAN GROUP Oklahoma City Phone: 405-523-2100 Fax: 405-556-2332

PENNSYLVANIA ENGLE-HAMBRIGHT & DAVIES, INC. Lancaster Phone: 717-394-5681 Fax: 717-394-0842 THE GRAHAM COMPANY Philadelphia Phone: 215-701-5281 Fax: 215-525-0239 THE HDH GROUP, INC. Pittsburgh Phone: 412-391-7300 Fax: 412-391-7322

RHODE ISLAND STARKWEATHER & SHEPLEY INSURANCE BROKERAGE, INC. East Providence Phone: 401-435-3600 Fax: 401-438-0150

HSBC INSURANCE BROKERS

Assurex Global Partners Page 3

UTAH MORETON & COMPANY Salt Lake City Phone: 801-531-1234 Fax: 801-531-6117

VERMONT KINNEY PIKE INSURANCE, INC. Rutland Phone: 802-775-2311 Fax: 802-775-8249

VIRGINIA RUTHERFOORD Roanoke Phone: 540-982-3511 Fax: 540-342-9747

WASHINGTON PARKER, SMITH & FEEK, INC. Seattle Phone: 425-709-3600 Fax: 425-709-7471

WEST VIRGINIA COMMERCIAL INSURANCE SERVICES, INC. Charleston Phone: 304-345-8000 Fax: 304-345-8014

WISCONSIN R&R INSURANCE SERVICES, INC. Waukesha (Milwaukee Area) Phone: 262-574-7000 Fax: 262-574-7080

* Branch of Partner

Rev. 04/08/08

31


Registered in England number 149013. Registered Office: 8 Canada Square, London E14 5HQ DISCLOSURE OF MATERIAL FACTS – Every proposer or insured, when seeking new insurance or amending or renewing an existing policy must disclose any information which might influence the insurer in deciding whether or not to accept the risk, what the terms of the policy should be or what premium to charge. If you fail to disclose all material facts, this may render the insurance voidable from inception (the start of the contract) and enable the insurer to repudiate liability (entitle the insurer not to pay your claims). If you are not sure whether a fact is material, you should disclose it. We will process your data in accordance with relevant data protection legislation. Your data will be passed to insurers so that they can assess and provide you with a quote (or cover) if applicable. We may exchange information with members of the HSBC Group to provide you with services and to process information on your behalf (in jurisdictions inside and outside the European Economic Area where there may be less stringent data protection laws). Wherever it is processed, your information will be protected by a strict code of secrecy and security which all members of the HSBC Group, their staff and any third parties are subject to and will only be used in accordance with our instructions. To help us to continually improve our service and in the interests of security, we may monitor and/or record your telephone calls with us. HSBC Group means HSBC Holdings Plc, its subsidiaries, associated and affiliated companies. HSBC Insurance is a trading name used worldwide by the insurance businesses of the HSBC Group, including HSBC Insurance Brokers Limited, which has issued this brochure. HSBC Insurance Brokers Limited is a Lloyd’s broker and is authorised and regulated by the Financial Services Authority, Firm reference number 310240.

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© Copyright HSBC Insurance Brokers Limited 2009. All rights reserved.


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