Supplemental IE Report RSAI Sun & Marine - Royal and Sun Alliance

Milliman Client Report
7.11 My views, as set out in the Report for the MIC Scheme and the Report for the PAGI Schemes, were in summary that:
• Prior to the Effective Date, the policyholders of Marine enjoy a strong level of security, which in turn is bound
together with RSAI by the DMG;
• On and after the Effective Date, the Schemes (in conjunction with the post-transfers reinsurance
arrangements with RSAI) and the PAGI Schemes will not adversely affect to any material extent the security
of the exiting policyholders of Marine or the policyholders (including PAGI policyholders) transferring to
Marine; and
• The post-transfers (re)insurance arrangements with RSAI covering the portfolios of Marine, Sun and RSA Re
will have no material impact on RSAI’s overall risk exposure, and hence policyholder security and service
levels for PAGI, Marine, RSAI, Sun and RSA Re.
7.12 I am informed by RSAI that the claim made by Blue Seas is being handled in the usual way and in accordance with
RSAI/Marine protocols (which are intended to be TCF compliant). Further, I am informed that there is a substantial
amount of information still outstanding from the claimant before Marine can proceed to an Examination under Oath of
the claimant and other relevant parties.
7.13 I have updated my analysis of the Schemes as described in this Supplemental Report, and that for the PAGI
Schemes as described in my supplemental report for the PAGI Schemes. Based on my updated analyses I continue
to believe that the Schemes (and the PAGI Schemes) will not have a materially adverse impact on the security
provided to Marine's existing policyholders and policyholders transferring to Marine; and that the proposed Schemes
(and the PAGI Schemes) will not have a materially adverse impact on Marine's existing policyholders and
policyholders transferring to Marine in relation to the way their policies are managed and administered, relative to their
position prior to the Schemes (and the PAGI Schemes) being implemented.
7.14 I am not aware of any other policyholder concerns that I need to address at the date of this Supplemental Report.
Supplemental Report of the Independent Expert 16
November 30, 2011