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Aliseo Reinsurance SCC (“Aliseo Re”) Aliseo Reinsurance SCC (“Aliseo”) is a Barbados-domiciled property retrocessional reinsurance company that is seeking to raise a minimum of $300 million of equity capital from a select group of private investors. Aliseo will offer “high layer” property retrocession coverage that provides indemnification to reinsurer clients (or retrocedants) for losses incurred under property reinsurance contracts that they market to primary insurance companies. Aliseo will write retrocession coverage at loss layers with remote probability of insured loss. Based on catastrophe modeling statistics, the statistical probability that Aliseo will suffer losses in any one year under its retrocession contracts is only 1 in 6.1 years. Aliseo Re Investor Highlights Strong Leadership Team – proven track record of CEO Andreas Kusay at Manufactures P&C Ltd., which earned an average annual return on capital of 36.5% during his tenure from 1997 – 2008. As Chairman, Mr. James Bryce provides highly complementary experience and relationships and a history of successfully building reinsurance businesses, including helping launch IPC Re Limited in 1993. Favorable Market Dynamics – the global retrocession markets face a supply-demand imbalance, driven by new capital regimes for insurers / reinsurers, increased capital requirements by rating agencies and the impact of recent unprecedented insurance industry catastrophe losses. These factors will support an ongoing attractive rate environment for Aliseo and continued strong demand for its retrocession products. Execution Risk – the investment has relatively little execution risk due to the direct access that Aliseo’s management has to “blue chip” reinsurance clients. This reduces reliance on brokers to produce retrocession business. Aliseo is confident that it can fully deploy its capital in its operations at its current premium rate assumptions and under acceptable terms and conditions. Low Cost Structure and Tax Efficient Domicile – Aliseo plans to employ a limited number of employees to execute its business strategy and its Barbados domicile offers a low-cost alternative to other major reinsurance centers. Projected base operating expenses for Aliseo are only US $2.5 million, which is less than 1.0% of its initial capitalization. Aliseo will also not be subject to corporate income tax. Fully-Collateralized Structure – by offering AAA equivalent fully-collateralized reinsurance protection, Aliseo can effectively combine its capital and premiums to provide “leveraged” reinsurance capacity (e.g. $100 of limit for every $75 of capital). This leverage optimizes returns on capital as compared to its competitors with a financial strength rating from agencies such as S&P or A.M. Best, which would likely have to hold $120 of capital for every $100 of limit provided. In addition, Aliseo’s AAA-equivalent “credit” will be superior to even its highly rated A/AA competitors. High Layer Loss Attachment Points - Aliseo’s loss attachment points for its key product will be set at what are generally considered to be remote levels; or approximately $40.0 billion and $12.5 billion for U.S. and non-U.S. exposures, respectively. Only two worldwide industry catastrophe loss events in history have clearly exceeded these attachment points (Hurricane Katrina in the U.S. in 2005 and the Tohoku Earthquake and Tsunami in Japan earlier in 2011). Attractive Risk-Adjusted / Non-Correlated Return Profile – Aliseo has the ability to generate 30% or greater annual returns on investor capital while providing an investment opportunity that is not correlated to the global economic environment, market interest rates or the broader capital markets. Alignment of Interests – The vast majority of Management’s eligible compensation will be variable and performance based. The performance bonus will only be payable in the event that Aliseo’s ROE before such performance bonus exceeds 10%. Aliseo’s President and CEO Andreas Kusay and other key executives will also initially forgo a base salary. Mr. Kusay and Mr. Bryce have also invested in Aliseo. Liquidity / Exit – investors will have access to annual liquidity via substantial cash dividends (up to 100% of Aliseo’s profits), which accelerates investors return on investment and through an annual put option starting in 2013. The ability to achieve strong returns for investors is not dependent on a particular exit strategy or external factors such as the state of the IPO market or market conditions for a sale of Aliseo. 1 Capital Requirements and Financial Summary The Company projects that it will immediately have the ability to provide annual retrocessional market capacity (“aggregate limit”) of approximately $400 million to potential clients. Based on its projected business mix and anticipated premium rates, Aliseo projects it will write up to $120 million of premiums in its first 12 months of operations. It is currently anticipated that Aliseo will pay out up to 100% of its net income annually in the form of dividends to its shareholders. The ability of Aliseo to project future results is constrained by the unpredictable nature of anticipating when major catastrophe loss events will occur that will trigger losses under Aliseo’s retrocession contracts. While the statistical probability of Aliseo having losses under its products range from only 1:6.1 years to 1:10 years, when losses do occur, they may be severe. However, the premium rates that Aliseo will charge are expected to exceed two times the statistical probability of having a loss, which implies that substantial earnings will be generated to sufficiently absorb retrocession losses when they do occur. The table below displays the “mean loss” and “no loss” earnings scenarios for each of Aliseo’s two major retrocessional products on a stand-alone basis and on a blended portfolio basis: The “mean loss” scenario purports to illustrate average annual financial results over a multiple year, longterm reinsurance cycle assuming the occurrence of reinsurance losses based on statistical catastrophe model loss event probabilities associated with Aliseo’s products. The “no loss” scenario reflects a binary assumption that no single-event will attach Aliseo’s retrocession product limits. Catastrophe modeling statistics for Aliseo’s products imply that it should produce “no loss” underwriting years 83.7% of the time. Aliseo’s management is confident that it can generate a return on invested capital in its first twelve months of operations exceeding 30% (assuming the absence of major natural catastrophes; a “no loss” year) and returns on invested capital approaching 20% over a multiple-year, reinsurance cycle (the “mean loss” return). Investors in Aliseo will have multiple exit alternatives, including a private sale, initial public offering or investor annual put option. This put option will allow investors to generate near term liquidity at the discretion of the individual shareholder. Such option will be exercisable at a price equal to Aliseo’s net asset value per share beginning in 2013, with settlement occurring in early 2014. 2