Torus Healthcare Product Overview

1. A Torus
presentation
A new approach to managing
complex risks

2. About the Company
Torus Specialty Insurance Company •Torus is a global specialty insurer.
Torus National Insurance Company
•Local Underwriting, Global Reach: Torus has operations
in 10 countries, with five regional offices in the US.
A.M. Best Rating of A- g (Excellent) •Torus is organized into two core underwriting units: Torus
Group Rating Americas and Torus International, with each providing
Financial Size Category (FSC) of XI* direct insurance for Property, Casualty and Specialty
($750 Million to $1 billion) Lines.
(*effective November 8, 2011)
•Torus specialized ventures include our Bermuda-based
reinsurance team, Lloyd’s Syndicate 1301, and our new
A.M. Best believes the Torus group's consolidated risk- status as a licensed and admitted reinsurer in Brazil.
adjusted capitalization is likely to be maintained at a
strong level, based on performance forecasts and A.M. •Torus offers industry-driven insurance products for
Best's specific insurance start-up criteria. Energy, Construction, Aviation, Space and of course,
Healthcare.
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3. About our investors
 25 years specializing in the energy  15 years investing solely in financial
industry services industry
 Global platform with $20 billion of  New York-based investing in the US,
equity investments Europe, Latin America, Asia and
Central Europe
 Investments in over 100 platform
acquisitions  Portfolio companies include Axis,
Catlin, Kyobo Life and Sparta
 Portfolio companies include Abbot Insurance
Group, Acteon & Dresser

4. A deeper understanding of clients’ risks
Advanced risk More accurate
Transparency
modeling pricing of risk

5. Healthcare Overview
Torus believes that the best healthcare institutions work Torus demonstrates these beliefs by providing risk-transfer
together with insurance providers to assure that safe, tools that truly customize coverage to the needs of your
cost-effective care is provided to patients. institution. Some of the tools we offer for customized
protection are:
We believe that because dollars spent on malpractice
cases are dollars that are not available to provide care  Swing Plans/Retrospectively Rated Premium
for patients, we must work to ensure that inevitable
injuries are compensated fairly, not injudiciously.  Presumptive Premium Discount
Further, we believe that healthcare institutions should be  Retention Buy-downs
provided insurance mechanisms that reward the
provision of the safest, most effective evidence based  Split Retentions
medicine reasonably achievable.
 Commutation Provisions
 Rate Stabilization Endorsements
 Fronting Structures
 Programs
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6. Healthcare Overview
Swing Plans/Retros Presumptive Premium Discount
 Swing plans or “retros” offer many advantages  Rather than requiring an insured to wait until year has
for the insured. Organizations that achieve losses passed before adjusting a premium downward for no
significantly better than actuarially predicted losses occurring, the Presumptive Premium Discount
benefit from a premium that rewards low loss endorsement allows the Insured to bind coverage at a
activity. Unlike some of the retrospectively rated reduced premium. Only if a loss occurs, the premium
plans of the past: is adjusted proportionately based upon paid loss
within the Torus layer. If 10% of the Torus limit is
 Plans can be structured to have a finite
exhausted by a paid claim, there is an additional
adjustment period
premium charge of 10%.
 Premium calculations are simplified.
 The premium adjustment is proportional to the
 Unlike some dividend plans, you do not have amount of exhausted limit.
to be an Insured five years from now to
 This endorsement can be modified so the
receive return premiums
additional premium is used to reinstate the
exhausted limit.
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7. Healthcare Overview
Post Expiration Retention Buy-downs Split Retentions
 Torus provides Insureds the ability to buy-down their  Retentions are rarely designed to address the
attachment after the policy expires. historical severity arising out a specific location,
procedure or time period. Through account-
 An ideal tool to protect against volatility within specific modeling and manuscripted policy
the SIR/captive layer. language, Torus works with Insureds to design
programs that:
 Prior to binding, we offer pre-determined cost
and time periods to purchase insurance within  Split the retention for OB and Non-OB claims
the Insured’s SIR layer.
 Stair-step the retention, so incidents from
 The buy-down of the retention can occur different time periods have specific
during or after the policy period. attachments
 Allow multi-state risks to schedule different
retentions for each venue
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8. Healthcare Overview
Commutation Provision Rate Stabilization Endorsement
 There is a growing interest in reinsurance of lower  Torus offers multi-year policies in situations when
layers in captive programs, but Insureds struggle with we can predict the frequency of claims with a
the costs and benefits of retaining less risk. When high level of confidence. In situations where
results appear favorable, a commutation provision claim activity is less predictable, Torus can offer a
allows the Insured/Reinsured to accept returned Rate Stabilization Endorsement.
premium by releasing Torus (the Reinsurer) from future
liabilities.  An endorsement that commits to renewal
terms based upon the current rate, terms
 The request to commute may occur up to and conditions.
three years after the policy expiration.
 The terms remain unless there is a significant
 Depending upon the class of business, the change in loss experience, exposure or
returned premium may be up to 40% for the ownership during the policy period.
commutation.
 This offer is usually made on multi-year policies
or annual policies with high predictability.
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9. Healthcare Overview
Fronting Structures Program Business
 There are several reasons why a facility may need  Torus entertains programs for most healthcare-related
admitted or rated paper, even when they retain a casualty and professional lines of insurance. As long as
large portion of the risk. When Insureds need a there is $5M in expected premium volume, we will
“fronting company,” Torus can consider: consider:
 Matching deductible programs, where the  National or state-specific programs;
Policy’s deductible equals the per-claim limit of
liability.  Single or multi-line;
 Collateral in the form of a Letter of Credit or  In-house or third party claims handling;
114 Trust.
 Agency captive participation or 100% Torus.
 A funds-withheld structure to alleviate the
need for a Letter of Credit.
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10. Reducing the Cost of Risk
Like the best-in-class providers of medical care, Torus understands the balance between tried-and true
approaches to risk and the need for innovation. In placements where we are the lead insurer, we will
work with you as needed to identify risk consultants who can develop programs that improve your risk
profile…and reduce your total cost of risk.
Our goal is to provide the most appropriate and cost-effective coverage feasible, freeing resources for
your most important mission: maintaining and restoring the health of your community.

11. A Torus
presentation
A new approach to managing
complex risks