EX-99.1 2 dex991.htm INVESTOR PRESENTATION SLIDES TO BE USED IN CONNECTION WITH INVESTOR PRESENTATION Investor presentation slides to be used in connection with investor presentation
B E R M U D A         I R E L A N D         U N I T E D   S T A T E S         LLOYD’S
Max Capital Group Ltd.
Investor Day Presentation
June 1, 2009
Exhibit 99.1

2
INFORMATION CONCERNING
FORWARD LOOKING STATEMENTS
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION 
This presentation includes statements about future economic performance, finances, expectations, plans and prospects of both IPC Holdings, Ltd. (“IPC”) and Max Capital Group Ltd.
(“Max”) that constitute forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements
are subject to certain risks and uncertainties, including the risks described in the definitive  joint proxy statement/prospectus of IPC and Max that has been filed with the Securities
and Exchange Commission (“SEC”) under “Risk Factors,” many of which are difficult to predict and generally beyond the control of IPC and Max, that could cause actual results to
differ materially from those expressed in or suggested by such statements. For further information regarding cautionary statements and factors affecting future results, please also
refer to the most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q filed subsequent to the Annual Report and other documents filed by each of IPC or Max, as
the case may be, with the SEC. Neither IPC nor Max undertakes any obligation to update or revise publicly any forward-looking statement whether as a result of new information,
future developments or otherwise. 
This presentation contains certain forward-looking statements within the meaning of the U.S. federal securities laws. Statements that are not historical facts, including statements
about our beliefs, plans or expectations, are forward-looking statements. These statements are based on our current plans, estimates and expectations. Some forward-looking
statements may be identified by our use of terms such as “believes,” “anticipates,” “intends,” “expects” and similar statements of a future or forward looking nature. In light of the
inherent risks and uncertainties in all forward-looking statements, the inclusion of such statements in this presentation should not be considered as a representation by us or any
other person that our objectives or plans will be achieved. A non-exclusive list of important factors that could cause actual results to differ materially from those in such forward-
looking statements includes the following: (a) the occurrence of natural or man-made catastrophic events with a frequency or severity exceeding our expectations; (b) the adequacy
of our loss reserves and the need to adjust such reserves as claims develop over time; (c) any lowering or loss of financial ratings of any wholly-owned operating subsidiary; (d) the
effect of competition on market trends and pricing; (e) changes in general economic conditions, including changes in interest rates and/or equity values in the United States of
America and elsewhere and continued instability in global credit markets; and (f) other factors set forth in the definitive joint proxy statement/prospectus of IPC and Max, the most
recent reports on Form 10-K, Form 10-Q and other documents of IPC or Max, as the case may be, on file with the SEC. Risks and uncertainties relating to the proposed transaction
include the risks that: the parties will not obtain the requisite shareholder or regulatory approvals for the transaction; the anticipated benefits of the transaction will not be realized;
and/or the proposed transactions will not be consummated. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date
on which they are made. We do not intend, and are under no obligation, to update any forward looking statement contained in this presentation. 
ADDITIONAL INFORMATION ABOUT THE PROPOSED BUSINESS COMBINATION AND WHERE TO FIND IT: 
This presentation relates to a proposed business combination between IPC and Max. On May 7, 2009, IPC and Max filed with the SEC a definitive joint proxy statement/prospectus
of IPC and Max. This presentation is not a substitute for the definitive joint proxy statement/prospectus or any other document that IPC or Max may file with the SEC or send to their
respective shareholders in connection with the proposed transaction. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE DEFINITIVE  JOINT PROXY
STATEMENT/PROSPECTUS AND ALL OTHER RELEVANT DOCUMENTS FILED OR THAT WILL BE FILED WITH THE SEC AS THEY BECOME AVAILABLE BECAUSE THEY
CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED BUSINESS COMBINATION. All such documents, if filed, would be available free of charge
at the SEC’s website (www.sec.gov) or by directing a request to IPC, at Jim Bryce, President and Chief Executive Officer, or John Weale, Executive Vice President and Chief
Financial Officer, at 441-298-5100, in the case of IPC’s filings, or Max, at Joe Roberts, Chief Financial Officer, or Susan Spivak Bernstein, Senior Vice President, Investor Relations
at 441-295-8800, in the case of Max’s filings. 
PARTICIPANTS IN THE SOLICITATION: 
IPC and Max and their directors, executive officers and other employees may be deemed to be participants in any solicitation of IPC and Max shareholders, respectively, in
connection with the proposed business combination. 
Information about IPC’s directors and executive officers is available in the definitive joint proxy statement/prospectus filed with the SEC on May 7, 2009, relating to IPC’s 2009 annual
meeting of shareholders; information about Max’s directors and executive officers is available in the amendment to its annual report on Form-10K, filed with the SEC on April 1, 2009.

3
Introduction
Risk Management
Overview of Bermuda / Dublin Insurance & Reinsurance
Overview of Max at Lloyd’s
Overview of Max Specialty
Overview of Life Reinsurance
Creating a World Class Specialty Insurer and Reinsurer
Appendix: Financial Review and Outlook
Agenda

4
Global underwriter of specialty insurance and reinsurance
Multiple
operating
platforms -
Bermuda,
Dublin,
United
States,
and
Lloyd’s
Diversified business profile across specialty classes of business
Highly experienced management with proven track record
Opportunistic and disciplined underwriting strategy
Analytical and quantitative underwriting orientation
5 year average combined ratio, with cats, of 93%
Strong, liquid balance sheet with conservative reserving track record
Gross
premiums
written
(2008)
of
$1.3
billion
and
3/31/09
equity
of
$1.3
billion
Prudent capital management -
$305 million in dividends/repurchases over last 5 years
Significant expansion of underwriting platforms with minimal goodwill
High quality investment portfolio repositioned to reflect traditional underwriting base
Alternative investments are now a much smaller part of Max’s asset base at 11.9% and are
expected to be reduced to 5% to 7%
Max has evolved and repositioned itself since its formation in 1999
Overview of Max Capital
Short-Tail
Long-Tail
62%
38%
Insurance
Reinsurance
53%
47%

5
Global Reach Through Established Platforms
Bermuda / Dublin
Reinsurance
Bermuda / Dublin  
Insurance
Lloyd’s
U.S Specialty Insurance
Major
Classes
Agriculture
Aviation
Excess liability
Medical malpractice
Professional liability
Property 
Marine and energy
Whole account
Workers’ comp
Life and annuity
Aviation
Excess liability
Professional liability
Property 
Personal accident
Financial institutions
Professional liability
Property 
General liability
Marine
Property
Operating
Regions
United States
Latin America
Canada
European Union
Japan
Australia
New Zealand
United States
European Union
United Kingdom
Japan
Denmark
United States
Offices
Bermuda
Dublin
Bermuda
Dublin
Hamburg
London
Leeds
Tokyo
Copenhagen
New York
Philadelphia
Richmond
Atlanta
Dallas
San Francisco

6
83%
84%
75%
77%
96%
84%
104%
101%
96%
96%
124%
102%
0%
25%
50%
75%
100%
125%
150%
300%
2004
2005
2006
2007
2008
Average
____________________
Source:  Company filings.
Property focused reinsurers include RNR, IPC, VR, MRH and FSR. Diversified reinsurers include RE, AXS, ACGL, TRH, PRE, ORH, AWH,
ENH, AHL, PTP and MXGL.
Diversified Platforms Generate More Consistent Margins
Diversified Reinsurers
Property Focused Reinsurers
78%
140%
33%
50%
56%
71%
104%
252%
60%
73%
92%
116%
0%
25%
50%
75%
100%
125%
150%
300%
2004
2005
2006
2007
2008
Average
Max has performed well within its diversified peer group with less volatility than
property focused reinsurers
Median
78%
201%
55%
61%
89%
97%
Median
94%
116%
85%
83%
94%
94%
Max
94%
106%
86%
88%
92%
93%

7
Max Bermuda and Dublin (Insurance/Reinsurance)  
Rates rising in short-tail property cat and energy
Long-tail lines have stabilized and stopped declining
Max at Lloyd’s
Newest platform to Max that provides access to global specialty business, high credit ratings,
worldwide licenses
Experienced team underwriting a seasoned book of business
Opportunity to recruit new teams in attractive product lines
International casualty reinsurance
Marine and personal accident insurance
Max Specialty
Strong distribution relationships continue to generate a high flow of business
Market
dislocations
provide
the
opportunity
to
add
teams
and
new
products
Benefiting from improving property rates
Profitability improving as the business matures and can retain more business
Life Reinsurance
Only writes “closed”
blocks of business with no variable annuity exposure
Provides surplus relief which will be in high demand as many life insurers are capital constrained
Max is Strongly Positioned in 2009

8
As % of Total Investments
Max Investment Portfolio Highlights
____________________
(1)
Peers include: IPCR, PRE, ORH, ACGL, RE, RNR, MRH, ENH, TRH, AXS, AWH, PTP, VR, AHL, FSR, and GLRE.  Peer average represents 3/31/09
allocation of preferred / equities and “other investments”
as % of total investments.
Alternatives allocation is decreasing
Alternative
investments
12%
Cash
19%
Fixed income
69%
Long / Short funds
41%
Opportunistic
3%
Distressed
Securities
14%
Arbitrage
strategies
24%
Emerging / Global
Markets
18%
5%-7%
12%
29%
0%
5%
10%
15%
20%
25%
30%
35%
Max
12/31/05
Max
3/31/09
Target
Market neutral / absolute return focus
Max alternatives in line with Bermuda peers
Max alternatives target = 5%-7%
Peer group
(1)
(average) = 10%

9
Strong Results in Q1 2009
Total GPW of $434.3 million, up 41.6% compared to Q1’08
Reflects build-out of global platform
Max Specialty GPW: $68.8 million
Max at Lloyd’s $44.2 million (first full quarter with Max)
Profitable
Q1
2009
underwriting
results
-
Overall
combined
ratio
89.7%
Market conditions improving in 2009
Rate increases on short-tail lines
Casualty rates have stabilized
Allocation to alternative investments reduced to 11.9% at 3/31/09 (14.1% at 12/31/08)
Total investment portfolio return:
0.06%
Max Fixed Income Return:  
(0.41%)
Max Alternative Investments Return: 
2.06%

10
Introduction
Risk Management
Overview of Bermuda / Dublin Insurance & Reinsurance
Overview of Max at Lloyd’s
Overview of Max Specialty
Overview of Life Reinsurance
Agenda
Creating a World Class Specialty Insurer and Reinsurer
Appendix: Financial Review and Outlook

11
Risk and Aggregate Management
Business managed in enterprise risk management system (ERMS)
Integrated asset and liability risk management and accounting platform
One system globally
Deals are tracked and modeled from submission through termination
Aggregations and accumulations are tracked:
Across insurance, reinsurance, and assets
Pricing and risk models are built for all classes / deals written
Capital and/or exposure utilized are built into the price
Every transaction priced to target ROE
Initial reserve picks are based upon pricing model
Cat Business modeled in RMS/AIR
Capital is allocated to maximize ROE
Individual model for every transaction
Risks carefully analyzed and modeled
Capital allocated based on downside risk

12
Risk and Aggregate Management (cont’d)
Cycle Management
Each line of business is analyzed and reviewed quarterly for changes in market
conditions and pricing
Historical
and
peer
information
allows
us
to
understand
where
we
are
in
the
cycle
Established price curves allow us to understand where the walk away price is
Reinsurance purchased to manage:
Aggregation of cat and clash
Line size
ROE
Demonstrated track record of risk management
No change in Katrina/Rita/Wilma and Ike/Gustav reserves
Timely
reductions
in
D&O
premiums
written
allowed
us
to
minimize
losses
Solid reserving practices have created:
History of reserve releases
High percentages of IBNR

13
Introduction
Risk Management
Overview of Bermuda / Dublin Insurance & Reinsurance
Overview of Max at Lloyd’s
Overview of Max Specialty
Overview of Life Reinsurance
Agenda
Creating a World Class Specialty Insurer and Reinsurer
Appendix: Financial Review and Outlook

14
Experienced Senior Underwriters –
Insurance & Reinsurance
Executive
Previous Experience
Years Experience
Angelo Guagliano
CEO - Max Bermuda
XL
Reliance National 
Prudential Re
29
Lou Adanio
CUO- Property
Endurance Specialty Insurance
Cambridge Risk 
SCOR Reinsurance
29
John Boylan
CUO-General Liability
XL Europe
AIG
27
Jim Gray
CUO-Professional Liability
XL
Zurich American Insurance Company
Lexington Insurance Company
25
Olivier Marre
CUO-Aviation Insurance
La Reunion Aerienne
SITA
16
David Kalainoff
CUO-Casualty Lines
Transatlantic Reinsurance                                  
Firemans Fund
Continental Insurance
27
Adam Mullan
CUO-Specialty Lines
ACE
Marsh McLennan
Guy Carpenter
23

15
U.S. Specialty
15%
Max at Lloyd's
(1)
1%
Bermuda/Dublin
Insurance
31%
Life & Annuity
Reinsurance
19%
Bermuda/Dublin
Reinsurance
34%
P&C Insurance: A Consistently Profitable Performer
Bermuda / Dublin Insurance 2008 GPW
Max Capital 2008 GPW
Total = $1,254 million
Total = $389 million
2009E Total = $405 million
____________________
(1)
Max at Lloyd’s acquired in November 2008 and includes partial year GPW.
Excess
Liability
Professional
Liability
Aviation
Property
14%
14%
41%
32%

16
P&C Insurance: Historical Results 2003 to 2008
GPW ($MM)
Combined Ratio
Loss Ratio
75.4%
101.5%
62.8%
77.1%
78.1%
73.0%
$163.2
$355.3
$396.6
$389.4
$248.1
$382.9
107.3%
80.5%
92.8%
70.6%
86.2%
88.2%
$0
$100
$200
$300
$400
$500
$600
2003
2004
2005
2006
2007
2008
60.0%
70.0%
80.0%
90.0%
100.0%
110.0%
(78.4% excluding KRW)
Casualty
Property / Short-
Tail
27%
73%
2008 GPW

17
P&C Insurance: Solid Insurance Casualty Results
GWP ($MM)
Policy Year Loss Ratio
Max has demonstrated profitable
underwriting and risk selection
Max entered in 2002 / 2003
Strong underwriting teams
Quantitative models
“Tougher”, better priced classes
Predominately claims made
2003 to 2006 were extremely profitable
Profitable booked loss ratios
High amounts of IBNR remain
Rates are currently flat year over year
Overall
IBNR
is
70%
-
75%
of
current
casualty
reserves
$163.2
$245.9
$321.0
$313.7
$289.0
$282.6
74.1%
63.7%
76.2%
78.2%
82.7%
$100
$200
$300
$400
$500
$600
$700
2003
2004
2005
2006
2007
2008
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
110.0%

18
Casualty Insurance
2008 GPW
Excess
Liability
Professional
Liability
Aviation
32%
Highlights
Excess Liability
Expected 2009 GPW of $125mm
Average premium of approximately $1mm per policy
Major
classes
–
healthcare,
pharma,
railroad,
industrial
Market
conditions
–
Q1
09
rates
stable
Professional
Liability
Expected 2009 GPW of $160mm
Average premium of approximately $400,000 per policy
Major
classes
–
E&O
(lawyers),
EPLI,
&
D&O
Market conditions
E&O –
Stable to up 10%
D&O –
Slightly up to substantially up on FI
EPLI –
Stable
Excess
Liability
Professional
Liability
Aviation
Property
41%

19
Specialty Insurance
2008 GPW
Property
14%
Aviation
14%
Highlights
Property
Insurance
Expected 2009 GPW of $60mm
Average premium of approximately $250,000 per policy
Major classes – commercial, industrial, & energy
Market conditions  
Up 10% to 15% on accounts with no losses 
Significantly higher on loss effected accounts
Aviation
Insurance
Expected 2009 GPW of $60mm
Average premium of approximately $85,000 per policy
Major classes – airlines, aerospace, and general aviation
Market conditions 
Rates up 10% to 15% on airlines 
Stable on aerospace and general aviation

20
U.S. Specialty
15%
Max at Lloyd's
(1)
1%
Bermuda/Dublin
Insurance
31%
Life & Annuity
Reinsurance
19%
Bermuda/Dublin
Reinsurance
34%
Bermuda / Dublin Reinsurance 2008 GPW
Max Capital 2008 GPW
Total = $1,254 million
Total = $420 million
2009E Total = $385 million
____________________
(1)
Max at Lloyd’s acquired in November 2008 and includes partial year GPW.
P&C Reinsurance Premium Contribution
Excess
Liability
Marine &
Energy
Other
Aviation
Prof. Liability
Workers
Comp
Med. Mal.
Agriculture
Property
25%
19%
18%
13%
9%
8%
4%
3%
2%

21
P&C Reinsurance: Historical Results 2004 to 2008
GPW ($MM)
Combined Ratio
Loss Ratio
74.9%
91.1%
70.0%
55.4%
64.0%
$248.6
$246.1
$419.5
$345.2
$423.6
$369.6
$334.6
87.4%
83.9%
93.9%
105.7%
96.7%
$0
$100
$200
$300
$400
$500
$600
$700
$800
2004
2005
2006
2007
2008
60.0%
70.0%
80.0%
90.0%
100.0%
110.0%
Traditional
Non-traditional
Combined Ratio
$583.2
$615.7
Casualty
57%
43%
Property /
Short-Tail

22
Specialty Reinsurance
Excess
Liability
Marine &
Energy
Other
Aviation
Prof. Liabliity
Workers
Comp
Agriculture
25%
Excess
Liability
Marine &
Energy
Other
Aviation
Prof. Liabliity
Med. Mal.
Agric
Property
8%
Property
Aviation
2008 GPW
Highlights
Property
Reinsurance
Expected 2009 GPW of $100mm
Average premium of approximately $700,000 per treaty
US nationwide, super regional, Japan, Europe
Market conditions  
Nationwide up 15%, regional & super regional up 5%-10% 
Europewide up 5% to 15%, other international flat to up 5% 
Aviation &
Space
Expected 2009 GPW of $30mm
Average premium of approximately $1.2mm per treaty
Airlines, satellite, and general aviation
Market conditions 
Signs of hardening on airline insurance, GA is stable
Satellite up 10% to 15%

23
Specialty Reinsurance (cont’d)
Agricult
Workers
Comp
Prof. Liabliity
Aviation
Other
Energy
Excess
Liability
3%
Excess
Liability
Marine &
Energy
Other
Aviat
Prof.
Med. Mal.
Agriculture
19%
Marine &
Energy
Agriculture
2008 GPW
Highlights
Marine &
Energy
Expected 2009 GPW of $20mm
Average premium of approximately $1.0mm per treaty
Onshore and offshore energy
Market conditions  
Gulf market is seeking 60% to 75% rate increases 
Onshore rates are up 5% to 10%
Agriculture
Expected 2009 GPW of $75mm
Average premium of approximately $8.0mm per treaty
Multi peril crop, some crop/hail and named peril
Market conditions 
Flat on an exposure adjusted basis

24
Casualty Reinsurance
Property
Agriculture
Me
Workers
Comp
Prof. Liabliity
Aviation
Other
Marine &
Energy
Excess
Liability
2%
2%
Excess
Liability
Marine &
Energy
Other
Aviation
Workers
Comp
Med. Mal.
Agricult
Property
9%
Prof.
Liability
2008 GPW
Highlights
Excess Liability
Expected 2009 GPW of $25mm
Average premium of approximately $2mm per treaty
General liability, auto liability, public entity business
Market conditions 
Primary rates flat to increasing, reinsurance rates up
National writers looking for support
Professional
Liability
Expected 2009 GPW of $15mm
Average premium of approximately $400,000 per treaty
D&O, E&O, & E&O – lawyers
Market conditions 
E&O – Stable to up 10%
D&O – Slightly up to substantially up on FI 
EPLI – Stable

25
Exces
Liabilit
Marine
Energ
Other
Aviation
Prof. Liabliity
Workers
Comp
Med. Mal.
Agriculture
Property
18%
Excess
Liability
Marine &
Energy
Other
Aviation
Prof. Liabliity
Workers
Comp
Med. Mal.
Agriculture
Prop
13%
2008 GPW
Casualty Reinsurance (cont’d)
Highlights
Medical
Malpractice
Expected 2009 GPW of $60mm
Average premium of approximately $2.0mm per treaty
Physicians & surgeons, hospitals, surgery centers
Market conditions 
Physician & primary HPL stable
Excess HPL rates not as attractive
Workers
Compensation
Expected 2009 GPW of $55mm
Average premium of approximately $1.7mm per treaty
Small regional, single state funds, national writers on cat
Market conditions
Primary rates flat to down, reinsurance rates mixed
Looking to exploit XOL/QS pricing differentials

26
Introduction
Risk Management
Overview of Bermuda / Dublin Insurance & Reinsurance
Overview of Max at Lloyd’s
Overview of Max Specialty
Overview of Life Reinsurance
Agenda
Creating a World Class Specialty Insurer and Reinsurer
Appendix: Financial Review and Outlook

27
Executive
Previous Experience
Years Experience
Matthew Petzold
Underwriting Director
Danish Re
Copenhagen Re (UK)
33
Iain Bremner
Managing Director
Abacus Syndicate
Marsh & McLennan
22
Lance Gibbins
Finance Director
Aon
Limit Syndicate
21
Experienced Management Team

28
Max at Lloyd’s: Max’s Newest Platform
Manage £125.0 million of 100% owned capacity in Syndicate 1400.  Also manage two
partially owned third party syndicates
Offices
in
London,
Copenhagen,
and
Tokyo
-
total
staff
of
85
Syndicates under management
Syndicate
1400
-
2008
stamp
capacity
of
£125.0mm
–
100%
provided
by
Max
Writes property reinsurance, accident & health reinsurance and financial institutions
insurance
Broad geographic spread, including the US, UK, Caribbean and Asia
Syndicate
2525
-
2008
stamp
capacity
of
£42.0mm
–
2%
provided
by
Max
Writes employers’
and third party / product liability lines, both on primary and excess of
loss bases
Concentrates on the UK, with only small overseas exposures and no US-domiciled
insureds
Syndicate
2526
-
2008
stamp
capacity
of
£31.8mm
–
36%
provided
by
Max
Writes professional indemnity and medical malpractice
Primarily UK-domiciled insureds with some European and Australian accounts

29
Accident &
Health
25%
Property
Treaty
75%
Accident & Health
16%
Other
2%
Professional
Indemnity
15%
Financial Institutions
17%
Property Treaty
50%
29
2009E Gross Premiums Written
Total = $150 million
Max At Lloyd’s 2009E GPW
____________________
Note:  2009 gross premiums written represent Max at Lloyd’s syndicate interests only.
Reinsurance: $99 million
PL/EL
5%
Professional
Indemnity
44%
Financial
Institutions
50%
Insurance: $51 million

30
USA
29%
Japan
13%
Europe
20%
UK/Eire
17%
Caribbean
6%
Other
15%
Europe
31%
UK/Eire
63%
Other
6%
USA
16%
Caribbean
8%
UK/Eire
13%
Europe
37%
Latin America
17%
Other
9%
USA
39%
Canada
5%
Europe
30%
Japan
5%
UK/Eire
9%
Other
12%
Geographic Reach: 2009E Gross Premiums Written
USA
39%
Canada
5%
Japan
24%
Europe
9%
UK/Eire
7%
Caribbean
8%
Australasia
6%
Other
2%
Property
Professional Indemnity
Financial Institutions
Accident & Health
Total

31
Enhancing Max at Lloyds in 2009
Maintain and strengthen our existing Lloyd’s underwriting resources
Continuing emphasis on robust pricing process and superior risk selection
Market
conditions
improving
–
but
slowly
Strategy of diversification to add further experienced underwriting teams, to further
leverage the Lloyd’s franchise:
PA insurance
Casualty treaty reinsurance
Marine
Others
Hired two new underwriters thus far in 2009: Clive Hatto in accident & health and
Hugh Sprowson in financial institutions
Improved capital efficiency, reduced expense ratio and improved ROEs

32
Introduction
Risk Management
Overview of Bermuda / Dublin Insurance & Reinsurance
Overview of Max at Lloyd’s
Overview of Max Specialty
Overview of Life Reinsurance
Agenda
Creating a World Class Specialty Insurer and Reinsurer
Appendix: Financial Review and Outlook

33
Experienced Senior Underwriters
Executive
Previous Experience
Years Experience
Steve Vaccaro
CEO – Max Specialty
President & COO
Essex Insurance Company
38
Bryan Sanders
EVP – Contract Binding
Max Specialty
E&S Division, Hilb, Rogal & Hobbs
President Dominion Specialty
27
Jon Hahn
SVP – Brokerage Division
Max Specialty
VP Western Region
Markel Corporation
18
Mike Miller
SVP – Marine Division  
Max Specialty
CUO Specialty Division
Firemans Fund
William H McGee
36
Buddy Anckner
President – Casualty Div.
Max Managers, USA
SVP Max Bermuda
SVP XL’s Bermuda Insurance Operation
25
Phil Vedell
SVP, CAO, Director of
Catastrophe Management
SVP
Aon
13
Stephen Loderick
SVP, CFO and Treasurer
Max Specialty
VP, CFO and Treasurer
W.R. Berkley
Markel Corporation
25

34
Property
General
Casualty
Marine
49%
31%
20%
An Important and Growing Business for Max
Life & Annuity
Reinsurance
Max at Lloyd's
U.S. Specialty
Bermuda/Dublin
Insurance
Bermuda/Dublin
Reinsurance
34%
31%
15%
1%
19%
Product diversification allows resources to be reallocated as market cycles change
Max Specialty 2008 GPW
Max Capital 2008 GPW
Total = $1,254 million
Total = $194 million
2009E Total = $250 million
____________________
(1)
Max at Lloyd’s acquired in November 2008 and includes partial year GPW.
(1)

35
Max Specialty –
Leading E&S Writer
Max Specialty contributes to Max Capital’s diversified niche orientation by adding
profitable
business
in
both
property
and
casualty
throughout
the
market
cycle
Nationwide excess and surplus lines writer of property, casualty
and marine
Three distinct divisions: Brokerage, Marine and Contract Binding
Six strategically placed offices in the US
Strong financial strength and technical expertise
Significant product diversification and strong distribution relationships
Start-up in 2007 with experienced teams from Essex/Markel and other E&S platforms
Expected to write $250 million of GWP in 2009
Internal structure in place and start-up expenses have stabilized
Strong relationships with our brokers and agents
Licensed in 49 states on a non-admitted basis and 50 states on an admitted basis
Have the people and the platforms to write a diversified book anywhere in the U.S.
Use of third party reinsurance to minimize exposure in early years
Strong sponsorship by the reinsurance community
Placed with favorable terms and conditions
Target combined ratio of 85% to 90%
Loss ratio on target; expense ratio decreasing as book continues
to grow

36
Max Specialty Segment Review
2008 GPW
Contract Bindi
Max Managers
Marin
Brokerage
41%
Contract Binding
Max Man
Marine
33%
Highlights
Brokerage
Division
Expected 2009 GPW of $90mm
Average premium of approximately $45,000 per policy
Apartments, offices, mixed use, hotels, shopping centers
Market conditions 
Loss effected layers up 25% to 30%, others up 10%
Non cat exposed layer pricing remains soft
Contract
Binding
Expected 2009 GPW of $86mm
Average premium of approximately $2,000 per policy
Mostly casualty – contractors, habitational, retail, and service
Market conditions
Casualty pricing mixed

37
Max Specialty Segment Review (cont’d)
2008 GPW
Max Managers
Marine
6%
Marine
20%
Highlights
Marine
Expected 2009 GPW of $53mm
Average premium of approximately $30,000 per policy
Contractors equipment, builders risk, motor truck cargo
Market conditions 
Primary rates flat with meaningful increases on loss affected
accounts
Max Managers
Expected 2009 GPW of $21mm
Average premium of approximately $2mm per treaty
Nursing homes, hospital, other medical and industrial
Market conditions 
Rates mixed

38
Introduction
Risk Management
Overview of Bermuda / Dublin Insurance & Reinsurance
Overview of Max at Lloyd’s
Overview of Max Specialty
Overview of Life Reinsurance
Agenda
Creating a World Class Specialty Insurer and Reinsurer
Appendix: Financial Review and Outlook

39
Experienced Senior Underwriters
Executive
Previous Experience
Years Experience
Chris Rutten
President
Life Reinsurance Division
ING Reinsurance
Security Life of Denver
24
Art Palmer
Senior Vice President
Life Reinsurance Division
Avon Consulting
Chalke Inc.
Transamerica
21

40
Overview of Life Reinsurance
Spread management business, comparable to basic full Loss Portfolio Transfer
Purchase blocks of existing policy or claim reserves (reserve buy outs)
All originated transactions –
winner takes all
Known data files –
no unreported exposures, minimal IBNR
Access to historic experience data
Only products with highly predictable and non-volatile cash flows
Full asset transfer –
the economic value of the liabilities
It is NOT …
Risk premium reinsurance (mainstream life reinsurance)
Automatic reinsurance of new business (treaty business)
Mega-sized transactions
Variable or deferred annuities, XXX, term insurance, life settlements, COLI/BOLI
U.S. Specialty
15%
Max at Lloyd's
(1)
1%
Bermuda/Dublin
Insurance
31%
Life & Annuity
Reinsurance
19%
Bermuda/Dublin
Reinsurance
34%
____________________
(1)
Max at Lloyd’s acquired in November 2008 and includes partial year GPW.

41
Overview of Life Reinsurance
Business targets
3 or 4 deals per year -
$150+ million new business
Remain expense efficient
Price and realize ROE of 15%+
Sales: 2000 to 2008 in excess of $1.75 billion
27 transactions; 15 counterparties; 3 deals per year on
average
Reserves
Under
Management
-
$1.4
billion
European pension annuities in payment
Disabled life claim reserves, both disability income and
mortality
Small face amount life insurance, mostly paid-up
Structured settlements
Liability performance virtually exactly on target with pricing;
no policy performance impact of recession or natural
disasters
Cost-efficiency: expenses lower than priced for
Gross Premiums Written
($MM)
$212.3
$275.0
$45.0
$302.0
$242.2
$0.0
$50.0
$100.0
$150.0
$200.0
$250.0
$300.0
$350.0
2004
2005
2006
2007
2008

42
Market Developments –
Europe
Strong demand for European pension annuity reinsurance during past four years
Similar to 401(k) with mandatory lifetime annuitization (compulsory pensions) and buy-out
of pension trusts in wind-down
No antiselection
No policyholder options
Target deal size in the €50 -
€200 million range
Pension annuity market now moderating
Market Developments –
U.S.
Need for regulatory capital strong
Reinsurance is efficient capital alternative
Small company market focus
USD
31.2%
EUR
68.8%
Overview of Life Reinsurance
Life Reserves by Currency

43
Introduction
Risk Management
Overview of Bermuda / Dublin Insurance & Reinsurance
Overview of Max at Lloyd’s
Overview of Max Specialty
Overview of Life Reinsurance
Agenda
Creating a World Class Specialty Insurer and Reinsurer
Appendix: Financial Review and Outlook

44
A truly diversified, balanced global underwriting platform
Strong and vibrant franchise serving both property & casualty markets
Multiple
operating
platforms
–
Bermuda,
Dublin,
U.S.
and
Lloyd’s
Strong capital base with over $3 billion in equity and minimal leverage
Greater size enhances “margin of safety”
and financial flexibility
More
efficient
use
of
capital
-
$300
to
$400
million
of
excess
capital
Increased ability to accelerate growth in a hardening market
Both property & casualty markets currently provide attractive opportunities
Strong and deep management and underwriting teams
IPC/Max Creates A World Class Specialty Company
An IPC/Max merger brings together the upside of the short-tail market
and
the
stability
of
returns
of
long-tail
business
to
create
value
for
shareholders

45
A Combination Creates Size and Scale
Combination provides greater size and scale
Enhances valuation and ratings profile
Better positioning with clients and brokers
Platform/underwriters are in place
____________________
(1)
Includes RE, AXS, PRE, ACGL, TRH and RNR.
(2) Includes ORH, AHL, AWH, ENH, VR, IPCR, PTP, MRH and MXGL.
(3) Based on A.M. Best financial strength ratings.
12/31/2008
Company
Equity
1
Everest Re
$4,960
2
AXIS
4,461
3
PartnerRe
4,199
4
Arch Capital
3,433
5
Transatlantic
3,198
IPC + Max
3,131
6
RenaissanceRe
3,033
7
OdysseyRe
2,828
8
Aspen
2,779
9
Allied World
2,417
10
Endurance
2,207
11
Validus
1,939
12
IPC Holdings
1,851
13
Platinum Re
1,809
14
Montpelier Re
1,358
15
Max Capital
1,280
16
FlagstoneRe
986
17
Greenlight Capital
485
Average Price / Book Multiple
3-Year
2007
2008
Current
Rating
(3)
> $3.0 billion of
equity
(1)
1.26x
1.39x
1.09x
0.94x
A to A+
< $3.0 billion of
equity
(2)
1.04x
1.16x
0.89x
0.79x
A-
to A

46
$27.55
$33.67
$32.85
$25.00
$30.00
$35.00
IPC Standalone
Max
Validus
$31.67
$25.00
$30.00
$35.00
Max
Validus
$31.97
$25.00
$30.00
$35.00
Max
Validus
____________________
Note: Validus book value includes the impact of $3.00 dividend per share to IPC shareholders.
(1)
Excludes purchase accounting adjustments and transaction expenses. For more information, see joint proxy statement/prospectus filed with the SEC by IPC on May 7, 2009.
Max Transaction is Accretive to IPC –
Validus is Dilutive
Diluted Tangible Book Value per IPC Share (12/31/08)
As a multiple of IPC             0.96x
Pro Forma for PGAAP
Combined
(1)
Diluted Book Value per IPC Share (12/31/08)
As a multiple of IPC            0.97x
Combined
(1)
Pro Forma for PGAAP
?
?
As a multiple of IPC     
1.03x
0.84x
19.6% dilutive
to IPC
As a multiple of IPC     
1.01x
0.80x
No higher than $26.10
No higher than $27.24
16.1% dilutive
to IPC
Less than 0.79x
Less than 0.83x
$26.41
$33.23
$32.85
$25.00
$30.00
$35.00
IPC Standalone
Max
Validus

47
Max Offers a Higher Implied Price to IPC Shareholders
____________________
(1)
Exchange
ratio
of
0.6429
IPC
shares
per
Max
share
implies
1.5555
Max
shares
per
IPC
share.
(2)
Exchange
ratio
of
1.1234
Validus
shares
per
IPC
share
plus
$3.00
dividend
per
IPC
share.
Validus Average
Max Average
Average Implied Price to IPC
Since
VR IPO
2007
2008
52-Wk.
Max Capital
(1)
$35.21
$41.72
$35.61
$29.43
% Premium to IPC
27%
44%
27%
7%
Validus
(2)
$29.06
$30.38
$28.32
$28.21
% Premium to IPC
5%
5%
1%
3%
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
$40.0
$45.0
$50.0
7/25/07
10/7/07
12/21/07
3/5/08
5/19/08
8/2/08
10/16/08
12/30/08
3/15/09
5/29/09

48
78%
140%
33%
50%
56%
71%
104%
252%
60%
73%
92%
116%
0%
25%
50%
75%
100%
125%
150%
300%
2004
2005
2006
2007
2008
Average
83%
84%
75%
77%
96%
84%
104%
101%
96%
96%
124%
102%
0%
25%
50%
75%
100%
125%
150%
300%
2004
2005
2006
2007
2008
Average
____________________
Source:  Company filings.
Property focused reinsurers include RNR, IPC, VR, MRH and FSR. Diversified reinsurers include RE, AXS, ACGL, TRH, PRE, ORH, AWH,
ENH, AHL, PTP and MXGL.
Validus had the worst
combined ratio relative to
its mono-line peers
Validus began
operations following
Hurricanes Katrina, Rita
and Wilma
Diversified Platforms Generate More Consistent Margins
Diversified Reinsurers
Property Focused Reinsurers
Validus has
underperformed its peers
over the last 3 years
Median
94%
116%
85%
83%
94%
94%
Max
94%
106%
86%
88%
92%
93%
Median
78%
201%
55%
61%
89%
97%
68%
IPC
78%
252%
33%
50%
56%
94%
46%
VR
57%
62%
92%
NA
70%
3 year
Average

49
Validus has significant volatility embedded in its underwriting operations
Validus indicates its 1 in 250 year peak PML represents 33% of equity…whereas Validus lost 12.4%
of its equity in Ike/Gustav, a 1:10-15 year event?
Validus Has Significant Exposure to Catastrophes
Ike/Gustav Ultimate Net Losses as a % of 6/30/08 Common Equity ($ in millions)
3.4%
12.4%
11.0%
10.1%
8.9%
8.4%
8.1%
8.1%
7.8%
7.0%
6.7%
6.3%
6.0%
5.0%
4.8%
4.6%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
VR
FSR
RNR
MRH
PTP
ACGL
AXS
PRE
AHL
IPCR
ENH
ORH
TRH
AWH
RE
MXGL
(1)
(2)
(2)
(3)
Losses
$256
$140
$276
$140
$165
$287
$384
$305
$171
$135
$148
$155
$113
$257
$50
$170
____________________
Source: Company filings as of 12/31/08.  Losses are generally disclosed net of reinstatement premiums.
(1)
Results reflect Ike only.
(2)
Equity includes preferred, which subsequently converted to common.
(3)
TRH
does
not
disclose
specific
losses
but
disclosed
“$169.7
million
principally
relating
to
Hurricane
Ike”
or
5.0%
of
6/30/08
common
equity.
VR increased its Ike reserves by 42% in Q4 2008
Validus had the greatest loss among its
broad peer group

50
Validus is Changing its Story (Daily)
“The
merger
could
result
in
somewhat
lumpier
risk
concentrations
that
cannot
be
readily
discerned
by
looking solely at aggregate limits by geographic zones…
the proposed merger would lower Validus' asset quality,
potentially diminishing quality of capital, and raising effective catastrophe exposure”
-
Moody’s, Revising Outlook on Validus to Negative, April 2, 2009
Validus had to re-file a presentation due to inaccurate comments
Original Version –
dated May 28, 2009
Revised Version –
dated May 29, 2009
Deleted
Deleted
Added

51
The Market Expects the IPC / Max Merger to Close
The
market
expects
the
IPC
/
Max
merger
to
close
when
IPC
shareholders
vote
on
June
12
th
Since the merger was announced, IPC and Max’s stock prices have traded in a narrow band
Insurance investors understand that the IPC / Max merger makes strategic sense
The market has rejected Validus’s hostile offer
IPC
and
Max’s
stock
prices
demonstrate
that
the
market
views
Validus’
hostile
offer
as
improbable
Implied to
Max
(1)
Max
____________________
(1)
Implied to Max reflects an exchange ratio of 0.6429 IPC shares per Max share.
Implied Deal Price to Max
$13.00
$14.00
$15.00
$16.00
$17.00
$18.00
$19.00
2/27/09
3/9/09
3/19/09
3/29/09
4/8/09
4/18/09
4/28/09
5/8/09
5/18/09
5/29/09

52
The Market Has Not Endorsed Validus’
Hostile Proposal
3-Day VR
Performance
Following
03/30/09
Proposal
05/15/09
Proposal
(5.7%)
(7.5%)
Validus’
stock under significant pressure after each hostile offer
Massive underperformance against composite group
Reasons
are
clear
and
simple
–
NO
strategic
element
to
the
transaction
Validus using its overpriced stock to achieve a “change of control”
Revised offer now lower than original proposal (at time of announcement)
Validus’
stock
declined
7.5%
on
the
3
days
following
its
May
15
th
proposal
Downside risks to the trading value of Validus are significant
Hurricanes Ike/Gustav demonstrated high risk nature of underwriting platform

53
Research Analysts Strongly Endorse the IPC / Max Merger

54
IPC / Max Merger Is Ready to Close
All regulatory approvals are in place -
closing expected
immediately after the June 12
th
vote, prior to the 2009 hurricane season
Completion
Hart
-Scott-Rodino
Lloyd’s
UK FSA
Ireland
Delaware Insurance Department
Regulatory
Approval
Indiana Insurance Department
A.M. Best
Moody’s
Joint Rating Agency
Meetings
Standard & Poor’s
IPC lenders
Credit
Facilities
Max lenders
Proxy statement effective
IPC shareholders
June 12
th
Shareholder
Approvals
Max
shareholders
June 12
th

55
Why Shareholders Should Vote For The IPC / Max Merger
Compelling strategic combination
Leading specialty insurance/reinsurance business
Global platform with enhanced size and scale
Diversification into complementary and non-correlated business lines
Well established, entrepreneurial management team
Offers significant value to shareholders
Speed and certainty of closing
Result of a thorough and robust process
The
Max
transaction
and
the
Validus
offer
are
NOT
“either
or”
options
Choice
for
IPC
Shareholders
–
Vote
to
Approve
Max
Merger
or
NO
Transaction
Closing
expected
immediately
after
the
June
12
th
shareholder vote, before hurricane season

56
Introduction
Risk Management
Overview of Bermuda / Dublin Insurance & Reinsurance
Overview of Max at Lloyd’s
Overview of Max Specialty
Overview of Life Reinsurance
Agenda
Creating a World Class Specialty Insurer and Reinsurer
Appendix: Financial Review and Outlook

57
Property and Casualty GPW growth target of 20% to 22% driven by:
Max at Lloyd’s
Max Specialty
Bermuda/Dublin Insurance and Reinsurance relatively flat
Expected combined ratio of 88% to 90%
Assumes a cat load of 4-6 points
Does not include reserve releases
Improved profitability at Max Specialty as earned premiums offset higher expenses
to build-out the platform
Investment allocations
93%-95% fixed income
5%-7% alternatives
Target ROE is 15% over the course of the cycle
2009 Guidance

58
($ in millions)
Strong Balance Sheet
March 31,
December 31,
2009
2008
Cash & Fixed Maturities
$4,436
$4,603
Alternative Investments
599
                          
754
Premium Receivables
674
                          
555
Losses Recoverable
880
                          
847
Other Assets
588
                          
493
     Total Assets
$7,177
$7,252
Property & Casualty Losses
$3,005
$2,938
Life & Annuity Benefits
1,307
                       
1,367
Deposit Liabilities
153
                          
219
Funds Withheld
149
                          
164
Unearned Premium
690
                          
574
Bank Loan
300
                          
375
Senior Notes
91
                            
91
Other Liabilities
219
                          
244
     Total Liabilites
$5,914
$5,972
Shareholders' Equity
1,263
                       
1,280
$7,177
$7,252

59
($ in millions)
Quarterly Results Comparison
2009
2008
Gross Premiums Written
$434
$307
Net Premiums Earned
190
136
Net Investment Income
41
50
Net Gains (Losses) on Alternative Investments
18
(26)
Net
Realized
Gains
on
Fixed
Maturities
1
1
Other Income
1
1
Total Revenues
251
162
Total Losses, Expenses & Taxes
206
155
Net Income
$45
$8
Property & Casualty Underwriting
Loss Ratio
66%
69%
Expense Ratio
24%
20%
Combined Ratio
90%
89%
Three months ended March 31,

60
Three months ended March 31, 2009
($ in millions)
Diversified Operating Platform
Life &
Property & Casualty
Annuity
Corporate
Consolidated
Bermuda / Dublin
Max at
Insurance
Reinsurance
U.S. Specialty
Lloyd's
Total
Reinsurance
Gross premiums written
$87.7
$233.0
$68.8
$44.2
$433.7
$0.6
$0.0
$434.3
Reinsurance premiums ceded
(54.9)
(51.4)
(40.7)
(17.3)
(164.3)
(0.1)
0.0
(164.4)
Net premiums written
$32.7
$181.6
$28.2
$26.9
$269.4
$0.5
$0.0
$269.9
Earned premiums
102.2
124.0
54.4
28.2
308.8
0.6
0.0
309.4
Earned premiums ceded
(52.2)
(26.5)
(33.0)
(7.4)
(119.0)
(0.1)
0.0
(119.1)
Net premiums earned
50.0
97.5
21.4
20.9
189.8
0.5
0.0
190.3
Net investment income
5.2
9.2
1.6
0.8
16.9
11.6
12.0
40.5
Net gains on alternative investments
1.2
3.0
0.0
0.0
4.3
7.9
5.9
18.0
Net realized gains (losses) on fixed maturities
0.0
0.0
0.1
0.5
0.6
0.0
(0.2)
0.4
Other income
1.1
0.0
(0.2)
0.1
1.1
0.0
0.2
1.3
Total revenues
$57.7
$109.7
$23.0
$22.2
$212.6
$19.9
$18.0
$250.5
Net losses and loss expenses
36.5
66.2
12.1
10.0
124.7
0.0
0.0
124.7
Claims and policy benefits
0.0
0.0
0.0
0.0
0.0
14.3
0.0
14.3
Acquisition costs
(1.4)
17.5
1.2
3.2
20.4
0.2
0.0
20.6
Interest expense
0.0
(0.5)
0.0
0.0
(0.5)
(0.4)
4.8
3.9
Foreign exchange (gains) losses
0.0
0.0
0.0
(3.5)
(3.5)
0.0
0.0
(3.5)
General and administrative expenses
5.1
7.5
7.8
4.7
25.1
0.7
18.5
44.3
Total losses and expenses
40.2
90.7
21.1
14.3
166.3
14.8
23.3
204.4
Income (loss) before taxes
$17.5
$19.0
$1.9
$7.9
$46.3
$5.1
($5.4)
$46.1
Loss Ratio
72.9%
67.9%
56.5%
47.7%
65.7%
Combined Ratio
80.3%
93.6%
98.4%
85.5%
89.7%

61
P&C Combined Ratio
Operating ROE
Gross Premiums Written
Operating Earnings Per Share (Diluted)
Life, $212
Life, $275
Life, $45
Life, $302
Life, $242
$1,254
$1,078
$865
$1,246
$1,044
$0
$250
$500
$750
$1,000
$1,250
$1,500
2004
2005
2006
2007
2008
$2.70
$3.52
$4.81
$0.19
($2.59)
($3)
$0
$3
$6
2004
2005
2006
2007
2008
15.8%
1.0%
17.3%
20.7%
(10.2%)
(10%)
(5%)
0%
5%
10%
15%
20%
25%
2004
2005
2006
2007
2008
Profitable Underwriting Trends
94%
106%
86%
88%
92%
75%
100%
125%
2004
2005
2006
2007
2008

62
Invested Assets (Ratio to Shareholders’
Equity)
Shareholders’
Equity (Book Value Per Share)
Dividends
Operating Cash Flow
$3,515
$4,223
$4,536
$5,123
$5,357
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
2004
2005
2006
2007
2008
$799
$447
$273
$252
$508
$0
$300
$600
$900
2004
2005
2006
2007
2008
$903
$1,186
$1,390
$1,584
$1,280
$0
$300
$600
$900
$1,200
$1,500
$1,800
2004
2005
2006
2007
2008
$0.12
$0.18
$0.24
$0.32
$0.36
$0.00
$0.10
$0.20
$0.30
$0.40
2004
2005
2006
2007
2008
(3.9:1)
(3.6:1)
(3.3:1)
(3.2:1)
(3.9:1)
($19.70)
($20.16)
($23.06)
($27.54)
($22.77)
($ in millions)
A Growing, Global Insurance / Reinsurance Company

63
Average quality of AA
70%+ of fixed income securities rated Aa or better
Less than 5% rated Baa or below
Approximately 43% of portfolio is Cash, Governments, Agencies, and Agency MBS
Cash balance is approximately $956 million or 22% of the portfolio
U.S. and G7 governments approximately $745 million or 17% of the portfolio
U.S. Agencies approximately $254 million or 6% of the portfolio
U.S. Agency MBS approximately $577 million or 13% of the portfolio
Corporate Holdings are well diversified
Approximately 32% of the portfolio
Approximately 200 different corporate issuers
Largest “Aa”
issuer is less than 1.1% of the portfolio
Largest “A”
issuer is less than 0.7% of the portfolio
No CDO’s, CLO’s, SIV’s or other highly structured securities
Remaining portfolio is high quality ABS, CMO and CMBS Holdings
Almost
all
CMO
holdings
are
rated
AAA,
with
substantial
portion
being
agency
CMO’s
Almost all CMBS holdings are rated AAA
Principal losses, if any, are expected to be minimal based upon cash flow and stress testing
ABS holdings are largely comprised of plain vanilla auto and credit cards
Home
equity
ABS
holdings
amount
to
approximately
$50
million
(all
Subprime
and
Alt
–
A)
Subprime
and
Alt
–
A
exposures
are
approximately
$73
million
book
value
>40% are AAA rated securities
2.7 year weighted average life
Significant and growing over-collateralization
No
principal
losses
are
expected
based
upon
cash
flow
and
stress
testing
Unrealized loss of approximately $23 million
High Quality Cash and Fixed Income Portfolio

64
Supplemental Investment Data –
March 31, 2009
____________________
(1)
Included within U.S. Governments and Agencies are Agency Mortgage-Backed Securities with a fair value of $576,909.
Note:
Past
performance
should
not
be
considered
to
be
a
reliable
indicator
of
future
performance.
Fair
Investment
Credit
Fair
Ratings
($ thousands)
Value
Distribution
Rating
Value*
Distribution
Cash and Cash Equivalents
$955,577
19.0%
U.S.
Government
and
Agencies
(1)
$962,470
27.7%
U.S. Government and Agencies
385,561
7.6%
AAA
1,296,639
37.3%
Non-U.S. Government
613,519
12.2%
AA
298,666
8.6%
Corporate Securities
1,428,150
28.4%
A
753,232
21.6%
Other Corporate Securities
38,476
0.8%
BBB
128,906
3.7%
Asset and Mortgage-Backed Securities
726,853
14.4%
BB
22,209
0.6%
Collateralized Mortgage Obligations
288,348
5.7%
B or lower
18,785
0.5%
Fixed Maturities
$3,480,907
69.1%
$3,480,907
100.0%
Annualized Periodic Rate of Return
Last
Year
Last
Last
3 Months
to Date
12 months
60 months
Cash and Fixed Maturities
$4,436,484
88.1%
(0.41%)
(0.41%)
2.77%
3.69%
Convertible Arbitrage
-
0.0%
16.99%
16.99%
2.72%
(0.83%)
Distressed Securities
85,883
1.7%
(0.25%)
(0.25%)
(19.14%)
6.91%
Diversified Arbitrage
44,769
0.9%
0.25%
0.25%
(31.44%)
(4.06%)
Emerging Markets
32,651
0.6%
0.18%
0.18%
(30.66%)
4.05%
Event-Driven Arbitrage
69,134
1.4%
2.99%
2.99%
(29.30%)
4.55%
Fixed Income Arbitrage
28,504
0.6%
9.66%
9.66%
15.63%
11.02%
Global Macro
73,587
1.5%
(0.16%)
(0.16%)
(5.70%)
4.17%
Long / Short Credit
19,309
0.4%
2.98%
2.98%
(12.24%)
4.45%
Long / Short Equity
226,610
4.5%
4.05%
4.05%
(3.86%)
4.40%
Opportunistic
14,039
0.3%
(3.43%)
(3.43%)
(41.96%)
4.66%
MDS
594,486
11.8%
2.00%
2.00%
(15.95%)
2.62%
Reinsurance Private Equity
4,999
0.1%
12.32%
12.32%
14.60%
10.41%
Alternative Investments
$599,485
11.9%
2.06%
2.06%
(15.83%)
2.07%
Total Investments
$5,035,969
100.0%
0.06%
0.06%
(3.53%)
3.68%