Catastrophe Backgrounder: Claims and Property-Loss Information

JERSEY CITY, NJ, June 10, 2002 — The U.S. hurricane season, which officially began June 1, peaks around August and September and lasts through November.

Hurricanes and tropical storms in the coming months will expose tens of millions of people living along coastal regions from Florida to New England and the Gulf Coast states from Florida to Texas to potentially devastating property losses.

The attached two-page fact sheet is compiled from information in Insurance Services Office, Inc.'s (ISO) Property Claim Services (PCS) database on property losses from both man-made and natural disasters in the U.S.

The fact sheet highlights some of the more significant information on past catastrophes, including hurricanes, and dollar value of property damage that would be useful as background for breaking news coverage of natural disasters. ISO spokespeople are also available to provide analyses of catastrophe losses.

In addition, ISO's newly acquired catastrophe- and weather-risk modeling subsidiary, AIR Worldwide Corporation, can assist you in your coverage of hurricanes and other catastrophes with prospective information on property losses. AIR's computer-simulation models can project property loss estimates from hurricanes as far ahead as 48 hours before landfall.

About ISO
ISO is a leading source of information, products and services related to property and liability risk. For a broad spectrum of commercial and personal lines of insurance, ISO provides statistical, actuarial, underwriting and claims information and analysis; consulting and technical services; policy language; information about specific locations; fraud-identification tools; and data processing.

About AIR
AIR Worldwide Corporation (AIR) is a leading catastrophe- and weather-risk modeling firm. AIR provides real-time loss estimates as hurricanes and other natural perils are in progress. AIR spokespeople are available to comment as storms unfold. Contact Mike Gannon at (617) 954-1857; mgannon@air-worldwide.com.

INSURANCE SERVICES OFFICE, INC.
PROPERTY CLAIM SERVICES

CATASTROPHE FACT SHEET

Catastrophes by Year (1992—2002): Number of Catastrophes and Estimated Insured Loss (adjusted to 2001 dollars) **

2002 (Q1) 3, $580 million
2001 20, $27.8 billion
2000 24, $ 4.7 billion
1999 27, $ 8.9 billion
1998 37, $10.9 billion
1997 25, $ 2.9 billion
1996 38, $ 8.3 billion
1995 33, $ 9.7 billion
1994 32, $20.2 billion
1993 31, $ 6.8 billion
1992 32, $28.9 billion
** To insurers, a catastrophe is a single incident or series of related incidents — whether man-made or wind, hail, tornadoes, flooding, wildfires, earthquakes, and other natural disasters — that causes insured property losses totaling at least $25 million and affects a significant number of policyholders and insurers.

Ten Costliest Catastrophes and Estimated Insured Loss (adjusted to 2001 dollars)

Terrorist attack (New York, Virginia and Pennsylvania) — Sept. 2001 $20.3 billion
Hurricane Andrew – Aug. 1992 $19.6 billion
Northridge (Cal.) earthquake — Jan. 1994 $14.9 billion
Hurricane Hugo — Sept. 1989 $ 5.9 billion
Hurricane Georges — Sept. 1998 $ 3.2 billion
Hurricane Betsy — Sept. 1965 $ 2.9 billion
Tropical Storm Allison — July 2001 $ 2.5 billion
Hurricane Opal — Oct. 1995 $ 2.4 billion
Hurricane Floyd — Sept. 1999 $ 2.1 billion
Hurricane Iniki — Sept. 1992 $ 2.0 billion

Hurricane Losses by Year (1992—2001): Number of Hurricane Catastrophes and Estimated Insured Loss (adjusted to 2001 dollars)

2001 0
2000 0
1999 5, $2.5 billion
1998 2, $3.6 billion
1997 1, $66 million
1996 3, $2.1 billion
1995 3, $3.9 billion
1994 0
1993 1, $36.8 million
1992 2, $21.6 billion

Ten Most Intense Hurricanes, Categories 5 and 4, (1900—2002) (measured by Saffir-Simpson Hurricane Disaster-Potential Scale) *

Florida (Keys) — 1935 Category 5
Camille — 1969 Category 5
Texas (Galveston) — 1900 Category 4
Louisiana (Grand Isle) — 1909 Category 4
Louisiana (New Orleans) — 1915 Category 4
Florida (Keys)/So. Texas — 1919 Category 4
Florida — 1928 Category 4
Donna — 1960 Category 4
Carla — 1961 Category 4
Andrew — 1992 Category 4
* Saffir-Simpson Hurricane Disaster-Potential Scale classifies hurricanes on their intensity and damage potential under five categories, with Categories 5, 4 and 3 being the most destructive. The scale does not measure insured property losses.

Release: Immediate

Contacts:
Giuseppe Barone / Erica Helton
MWW Group (for ISO)
201-507-9500
gbarone@mww.com / ehelton@mww.com