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INTERNATIONAL GROUP POOL AND REINSURANCE ARRANGEMENTS

IGP&I Reinsurance

2021/22 Pool and GXL Reinsurance contract structure

The structure of the Group’s claims-sharing arrangements (the “Pool”) and the commercial market and
captive (Hydra) reinsurance arrangements for the 2021/22 policy year are depicted in the diagram below.

The Pool is structured in three layers from US $10 million to US $100 million. Excess of US $30 million, the Pool is
reinsured by the Group captive reinsurance vehicle, Hydra Insurance Company Limited. Hydra is a Bermuda
incorporated Segregated Accounts company in which each of the 13 Group Clubs has its own segregated account (or
“cell”) ring fencing its assets and liabilities from those of the company or any of the other Club cells. Hydra reinsures
each Club in respect of that Club's liabilities within the Pool and reinsurance layers in which it participates. Through the
participation of Hydra, the Group Clubs can retain, within their Hydra cells, premium which would otherwise have been
paid to the commercial reinsurance markets.

The annual Group General Excess of Loss (“GXL”) reinsurance programme attaches at the Pool ceiling of US $100
million, and provides up to US $2 billion of reinsurance cover in a three-layer structure (Layer 1 - US $650 million
excess of US $100 million, Layer 2 - US $750 million in excess of US $750 million, and Layer 3 - US $600 million
excess of US $1.5 billion). Hydra retains a US $100 million AAD within the 70% Market Share in Layer 1, and there are
three multi-year private placements, each of which are 10% of layer 1.

A further US $1 billion of reinsurance cover (the “Collective Overspill”) is purchased by the Group to provide protection
in respect of claims exceeding the upper GXL cover limit of US $2.1 billion.
 P&I

USD 3.1Bn

Collective Overspill

USD 2.1Bn

600m xs 1.5Bn

USD 1.5Bn

Oil Pollution
750m xs 750m
USD 1.0Bn

250m xs 750m

USD 750m USD 750m

10% cover 650m xs 100m

10% cover 650m xs 100m

10% cover 650m xs 100m

10% cover 650m xs 100m

10% cover 650m xs 100m

10% cover 650m xs 100m

70% Order - 650m xs 100m 70% Order - 650m xs 100m
Excess of 100m AAD (for order) Excess of 100m AAD (for order)

USD 100m USD 100m

Pool Pool

Click each section for more details

The Pool, the first and second layers of the GXL and the private placement participation structures for the separate oil
pollution cover mirrors the main (P&I) placement up to the Oil Pollution cover limit (US $1 billion), as depicted above.
For chartered entries, there is a single combined P&I and oil pollution cover limit of US$350 million. The Pool and
Reinsurance layers structures for chartered entries are identical to those in place for owned entries up to the cover limit.

The Pool and Reinsurance structures are reviewed annually and any changes to the existing structures will be reported
under the News section on the Group website.

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