"The Role of Property/Casualty Insurance in Catastrophic Events" - Sandra G. Parrillo, CPCU, President and Chief Executive Officer, The Providence Mutual Fire Insurance Company

1. Insurance and Hurricanes Sandra G. Parrillo, CPCU

2. Inflation Adjusted US Insured CAT Losses by Cause of Loss, 1989-2008* 12/01/09 - 9pm eSlide – P6466 – The Financial Crisis and the Future of the P/C Source: PCS division of ISO. Hurricanes Account for Nearly Half of All Insured Catastrophe Losses Over the Past 20 Years

3. Top 12 Most Costly Disasters in US History 12/01/09 - 9pm eSlide – P6466 – The Financial Crisis and the Future of the P/C (Insured Losses, 2009, $ Billions) Sources: PCS; Insurance Information Institute inflation adjustments. 8 of the 12 Most Expensive Disasters in US History Have Occurred Since 2004; 8 of the Top 12 Disasters Affected FL Hurricane Katrina Remains, By Far, the Most Expensive Insurance Event in US and World History

4. Number of Hurricanes Directly & Indirectly Affecting the Northeast Since 1900 Tropical cyclone activity in the Northeast is not all that uncommon Source: New Hampshire Office of Emergency Management RI has been affected by 33 hurricanes since 1900

6. Storm Season 1944 Source : WeatherUnderground.com Three storms affected New England *46 deaths * $100 million damage

10. Storm Season 1999 Hurricane Floyd September 14-17 $4.5 Billion in damage Source: WeatherUnderground.com

12. Outlook for 2010 Hurricane Season: 25 % Worse Than Average *Average over the period 1950-2000. Source: Philip Klotzbach and Dr. William Gray, Colorado State University, June 2, 2010. Average* 2010F Named Storms 9.6 18 Named Storm Days 49.1 90 Hurricanes 5.9 10 Hurricane Days 24.5 40 Intense Hurricanes 2.3 5 Intense Hurricane Days 5 13 Accumulated Cyclone Energy 96.2 185 Net Tropical Cyclone Activity 100% 195%

13. Landfall Probabilities for 2010 Hurricane Season: Very Active *Average over the past century. Source: Philip Klotzbach and Dr. William Gray, Colorado State University, June 2010. Average* 2010F Entire US East Gulf Coast 52% 76% US East Coast Including Florida Peninsula 31% 51% Gulf Coast from Florida Panhandle to Brownsville 30% 50% Caribbean 42% 65%

15. Fortified Homes Survive Ike

17. 12/01/09 - 9pm eSlide – P6466 – The Financial Crisis and the Future of the P/C Fewer people now have a flood insurance policy than a year ago, especially in the Northeast and the West About a quarter from of Americans still believe their homeowners policy covers damage from flooding during a hurricane

21. THANK YOU Sandra G. Parrillo, CPCU President and CEO The Providence Mutual Fire Insurance Company www.providencemutual.com