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Transaction Overview Form of Consideration: 100% cash Offer Price: $65.00 per share; approximately $1,059.9 million in aggregate Transaction Structure: Tender offer followed by short form merger Restricted shares are expected to fully vest, with the holder entitled to Restricted Share and Option Treatment: receive cash equal to the Offer Price; stock options are expected to be cashed out at closing Conditions to Closing: At least a majority of the outstanding shares not owned by Parent shall have been tendered pursuant to the Offer No change in Recommendation by the Special Committee or Company Board [Governmental approvals] Expected Closing: Fourth quarter 2009 Based on draft Agreement and Plan of Merger, dated September 18, 2009 5

Transaction Overview Implied Transaction Multiples (Dollars in millions, except per share data) Original Price on FOSTER S 0 9/04/09 P rop osal P rice P er Sha re $ 50 .07 $6 0.0 0 $ 65 .00 ( 1) Market Premiums: Premium to 09/04/09 Closing Price 0.0% 19.8% 29.8% Premium to 1-Week Prior of $50.11 (0.1%) 19.7% 29.7% Premium to 1-Month Prior of $46.55 7.6% 28.9% 39.6% Premium to 52-Week High of $54.31 (7.8%) 10.5% 19.7% Premium to 52-Week Low of $31.55 58.7% 90.2% 106.1% Value of Common Shares Outstanding ⁽²⁾ $2,925.4 $3,505.5 $3,797.6 Value of Foreign Restricted Shares ⁽³⁾ 10.2 12.3 13.3 Value of Outstanding Stock Options ⁽⁴⁾ 3.3 4.4 5.0 Aggregate Equity Value 2,938.9 3,522.2 3,815.9 Total Debt 489.3 489.3 489.3 Preferred Stock 77.2 77.2 77.2 Total Enterprise Value $3,505.5 $4,088.8 $4,382.4 Value of the Minority Shares ⁽⁵⁾ $816.0 $978.2 $1,059.9 Stock P rice a s a Multiple of: LTM 6/30/09 Op. EPS $2.73 18.3x 22.0x 23.8x Est. EPS 2009 (Mean Street Est.) $3.89 12.9x 15.4x 16.7x Est. EPS 2009 (Management Case Op. EPS) ⁽⁶⁾ $4.27 11.7x 14.1x 15.2x Est. EPS 2009 (Management Case with Capital Gains) ⁽⁶⁾ $5.14 9.7x 11.7x 12.6x Est. EPS 2010 (Mean Street Est.) $3.22 15.6x 18.7x 20.2x Est. EPS 2010 (Management Case Op. EPS) ⁽⁶⁾ $4.48 11.2x 13.4x 14.5x Est. EPS 2010 (Management Case with Capital Gains) ⁽⁶⁾ $6.36 7.9x 9.4x 10.2x 6/30/09 Book Value Per Share $51.90 0.96x 1.16x 1.25x Adjusted Book Value Per Share ⁽⁷⁾ $57.43 0.87x 1.04x 1.13x Management Estimate for 09/30/09 Book Value $58.47 0.86x 1.03x 1.11x Common E quity Va lue a s a Multiple of: Aggregate 6/30/09 Book Value $3,061.1 0.96x 1.15x 1.25x Notes: (1) Based on closing price on initial offer date of 09/04/09 (2) Based on 58.425 million common shares and U.S. restricted shares outstanding (3) Based on 0.204 million foreign restricted shares outstanding as of 09/10/09 (4) Based on stock options outstanding of 0.082 million with an exercise price of $18.00, 0.006 million with and exercise price of $19.65, 0.003 million with an exercise price of $20.90, 0.008 million with an exercise price of $24.74 and 0.010 million with an exercise price of $24.04 as of 06/30/09 (5) Based on current FOSTERS ownership of 42.399 million ITHACA shares (6) As calculated by Sandler O’Neill per management projections (7) Reflects pre-tax realized gains of $101 million and unrealized gains of $396 million through 09/11/09 Source: Company filings, ITHACA management 6

ITHACA Overview and Financial Performance 3-Year Relative Stock Price Performance through September 4, 2009 ITHACA Everest Re TransAtlantic Reinsurance Composite S&P 500 200% 190% % Change CAGR ITHACA 64.2% 18.0% 180% Everest Re Group (10.3%) (3.6%) TransAtlantic Holdings (19.6%) (7.0%) 170% 64.2% Reinsurance Composite 8.0% 2.6% 160% S&P 500 (22.5%) (7.7%) 150% 140% 130% 120% 110% 8.0% 100% 90% (10.3%) (19.6%) 80% (22.5%) 70% 60% 50% 40% 09/01/06 01/01/07 05/03/07 09/02/07 01/02/08 05/03/08 09/02/08 01/02/09 05/04/09 09/03/09 09/04/09 Notes: “CAGR” is compound annual growth rate Reinsurance Composite includes ACGL, AHL, AWH, AXS, ENH, MXGL, PRE and PTP Source: SNL Financial 9

ITHACA Overview and Financial Performance Stock Price and Volume Data Since September 4, 2009 Volume Price Weighted (1 ) Date High Low Close Volume Price ITHACA 09/08/09 $63.10 $61.82 $62.98 2,544,535 $62.37 09/09/09 62.63 62.15 62.40 1,062,235 62.43 09/10/09 62.49 62.01 62.49 1,034,226 62.20 09/11/09 62.36 62.09 62.23 399,556 62.19 09/14/09 62.71 61.93 62.18 304,821 62.13 09/15/09 62.40 62.01 62.21 186,886 62.24 09/16/09 62.66 61.93 62.65 227,909 62.35 09/17/09 62.68 62.37 62.49 236,378 62.54 Average / Total $62.46 5,996,546 $62.31 FOSTERS 09/08/09 $347.64 $338.70 $341.47 102,125 $343.72 09/09/09 343.62 338.44 339.80 62,227 340.77 09/10/09 345.05 336.51 343.85 36,850 342.23 09/11/09 346.75 342.38 343.88 79,372 345.30 09/14/09 370.40 342.69 363.76 242,363 356.83 09/15/09 362.77 353.88 360.00 59,625 358.39 09/16/09 370.00 363.30 370.00 74,086 366.20 09/17/09 374.44 366.77 369.94 53,381 370.22 Average / Total $346.55 710,029 $352.96 Notes: (1) New York Stock Exchange composite trading volume only Source: Bloomberg 12

ITHACA Overview and Financial Performance Growth in Book Value per Share Comparison Book Value per Shar e (“BVPS”) % Change BVPS Since CAGR C om pany 2003 2004 2005 2006 2007 2008 06/30/09 12/03 12/08 1-Year 3-Year 5-Year ITHACA $20.87 $24.22 $22.31 $27.92 $36.78 $45.37 $51.90 148.7% 14.4% 27.8% 27.0% 21.3% Dir ect Peer s Everest Re Group Ltd. 56.84 66.09 64.04 78.53 90.43 80.77 91.13 60.3% 12.8% 0.9% 10.6% 10.6% TransAtlantic Holdings Inc. 36.24 39.30 38.60 44.80 50.56 48.19 53.47 47.5 11.0 3.9 10.1 9.6 Reins urance C om posite Arch Capital Group Ltd. 25.52 31.03 33.82 43.97 55.12 51.36 60.76 138.1 18.3 5.7 18.6 21.0 Axis Capital Holdings Ltd. 18.48 21.20 20.23 26.09 32.69 29.08 28.72 55.4 (1.2) (5.2) 11.6 NA PartnerRe Ltd. 42.48 50.99 44.57 56.07 67.96 63.95 73.85 73.8 15.5 5.2 16.6 13.6 Allied World Assurance Co. Holdings Ltd. 38.83 41.58 28.20 35.26 42.53 46.05 51.78 33.4 12.4 14.8 NA NA Aspen Insurance Holdings Ltd. 18.17 20.79 18.81 21.92 27.08 28.10 30.36 67.1 8.0 4.7 14.4 NA Endurance Specialty Holdings Ltd. 24.03 27.91 23.17 28.87 35.05 33.06 38.07 58.4 15.2 3.7 16.2 10.9 Platinum Underwriters Holdings Ltd. 24.79 26.30 23.22 28.33 34.04 34.58 37.89 52.8 9.6 8.5 15.0 10.2 Max Capital Group Ltd. 16.88 19.70 20.16 23.06 27.54 22.94 23.53 39.4 2.6 (8.3) 5.1 6.6 Mean 68.4% 11.1% 5.3% 15.4% 13.9% Note: “CAGR” is compound annual growth rate Source: FactSet, Company Filings 15

ITHACA Overview and Financial Performance Summary of Analyst Estimates ( 2 ) Price Target Report Full Year Estimates Implied Growth ( 1 ) Firm Recommendation Pre-Offer Post-Offer Date 2009 2010 ‘09E — ‘10E RBC Capital Markets Buy $56.00 $60.00 09/08/09 $4.00 $3.60 (10.0%) Keefe Bruyette & Woods Inc. Hold $52.00 $60.00 09/08/09 $3.95 $3.10 (21.5%) Fox-Pitt Kelton Cochran LLC Hold NA NA 09/14/09 $3.73 $2.95 (20.9%) Mean Analyst Estimates $54.00 $60.00 $3.89 $3.22 (17.4%) Median Analyst Estimates $54.00 $60.00 $3.95 $3.10 (21.5%) First Call Mean Estimates $54.00 $60.00 $3.57 $3.05 (14.5%) Consensus Trends Consensus Trends $4.00 Estimate 2009 E Op. EPS 2010 E Op. EPS $3.60 Share per $3.20 Earnings $2.80 Operating $2.40 Mean $2.00 03/07 05/07 07/07 09/07 11/07 01/08 03/08 05/08 07/08 09/08 11/08 01/09 03/09 05/09 07/09 09/09 Notes: Mean First Call estimates as of 09/17/09 (1) Analyst recommendations did not change after the offer announcement on 09/04/09 (2) FPK earnings estimated were updated after the announcement on September 4, 2009; full year 2009 decreased $0.22 and full year 2010 decreased $0.55 Source: FactSet, Bloomberg 16

ITHACA Overview and Financial Performance Selected Comparative Financial Information ( 1 ) GAAP Combined Ratio Operating Return on Average Equity YTD YTD Company 2006 2007 2008 06/30/09 2006 2007 2008 06/30/09 ITHACA 94.4% 95.5% 101.2% 96.5% 15.2% 10.4% 3.5% 9.9% Direct Peers Everest Re Group Ltd. 89.7% 91.6% 95.6% 88.8% 18.1% 14.4% 10.4% 14.1% TransAtlantic Holdings Inc. 96.0 95.3 98.5 94.3 15.6 15.3 11.8 14.2 Reinsurance Composite Arch Capital Group Ltd. 85.4 84.1 95.0 87.0 24.2 22.3 14.2 17.8 Axis Capital Hldgs Ltd. 77.3 75.3 89.8 83.4 24.4 22.0 8.7 14.8 PartnerRe Ltd. 84.4 80.4 94.1 85.3 19.6 20.4 10.9 15.3 Allied World Assurance Co. Holdings Ltd. 78.8 81.3 84.2 79.3 27.1 19.8 19.4 20.0 Aspen Insurance Holdings Ltd. 82.0 83.0 96.0 86.0 17.1 18.3 5.4 14.7 Endurance Specialty Holdings Ltd. 81.5 79.9 93.5 90.8 24.1 21.7 7.5 17.8 Platinum Underwriters Holdings Ltd. 83.6 81.0 91.9 78.5 19.4 18.6 11.0 18.1 Max Capital Group Ltd. 86.4 88.2 91.9 90.3 17.8 20.7 (10.3) 14.3 Other Reinsurance Companies RenaissanceRe Holdings Ltd. 54.7 59.3 79.0 49.4 30.3 21.5 5.9 22.0 Validus Holdings Ltd. 56.7 62.0 92.2 73.5 NA 26.2 8.5 20.7 Montpelier Re Holdings Ltd. 60.3 61.3 91.0 67.6 22.9 17.8 6.2 15.9 Argo Group International Holdings Ltd. 93.9 99.4 100.5 96.0 12.1 7.9 6.2 10.8 Flagstone Reinsurance Holdings Ltd. 47.6 72.8 89.4 74.3 20.6 15.1 (0.9) 21.0 Mean 77.2% 79.7% 92.2% 81.6% 21.0% 18.8% 7.7% 16.7% Median 82.0 81.0 92.2 85.3 20.1 19.8 8.5 15.9 Notes: (1) Operating income calculated as net income after taxes, less the net income attributable to noncontrolling interest, after-tax realized gains and extraordinary items net of related taxes Source: SNL Financial, Company Filings 17

ITHACA Overview and Financial Performance Book Value Adjusted for Portfolio Appreciation and Realized Gains (Dollars in millions, except per share data) As of 9/11/09 A s of 6/30/09 Change In Mar ket URA ⁽¹⁾ Mar ket U RA ⁽¹⁾ Mar ket URA ⁽¹⁾Value Value Value Value Value Value Fixed income securities, available for sale: United States government, government agencies and authorities $152.6 $15.7 $146.4 $11.4 $0.0 $4.3 States, municipalities and political subdivisions 2,592.5 350.7 2,450.3 208.4 0.1 142.3 Foreign governments 871.9 57.6 840.4 49.9 0.0 7.7 All other corporate 394.6 78.1 450.4 81.7 (0.1) (3.6) Total fixed income securities, available for sale 4,011.7 502.2 3,887.5 351.4 124.2 150.8 Redeemable preferred stock, at fair value 0.1 0.0 0.1 0.0 0.0 0.0 Total common stocks, at fair value 2,141.7 401.2 1,928.8 155.6 0.2 245.6 Total common stocks, at equity 139.7 25.8 139.7 25.8 0.0 0.0 Short-term investments 297.2 (0.0) 546.3 (0.0) (0.2) 0.0 Sub-Total $6,590.3 $929.2 $6,502.4 $532.8 $124.1 $396.4 Mark-to-Market on Trading Securities $544.8 $51.0 $575.4 $24.5 ($30.5) $26.5 Realized Gain/Loss on Disposal ⁽²⁾Bonds — 43.4 — — — 43.4 Common Stock — 31.1 — — — 31.1 Short-term and Cash equivalents — — — — — 0.0 Total MTM and Realized gains $544.8 $125.5 $575.4 $24.5 ($30.5) $101.0 Total $7,135.2 $1,054.7 $7,077.8 $557.3 $93.6 $497.4 Tax (@35%) $174.1 Aggregate Book Value Change after Tax $323.3 Per s har e Book Value C hange $5.53 Notes: 6/30/09 Book Value Per Shar e $51.90 (1) “URA” is Unrealized Appreciation (2) For the quarter to date through 09/11/09 Adj. 9/11/09 Book Value Per Shar e ⁽³⁾ $57.43 (3) Does not reflect share buyback activity and net earnings since 06/60/09 other than realized gains and mark-to-market gains as shown above Source: ITHACA management 18

ITHACA Overview and Financial PerformanceCommon Shareholders’ Equity Roll Forward (Dollars and share counts in millions, except per share data) Common Sha res Per ( 1 ) Outstand ing Share Com m on Shar eholder s ‘ Equity at 06/30/09 $3,061.1 59.0 $51.90 Increase in Unrealized Appreciation in Investments (through September 11th) 257.7 Estimated Net Income Available to Common for the Third Quarter ⁽²⁾ 126.8 Shares Repurchased During Third Quarter (25.1) Estimated Third Quarter Common Dividends (4.3) Es tim ated Com m on Shar eholder s ‘ Equity at 09/30/09 $3,416.2 58.4 $58.47 Estimated Net Income Available to Common for the Fourth Quarter ⁽³⁾ 74.1 Estimated Fourth Quarter Common Dividends (4.3) Es tim ated Com m on Shar eholder s ‘ Equity at 12/31/09 $3,485.9 58.4 $59.66 Notes: (1) Includes U.S. restricted shares (2) Reflects $10 million of additional pre-tax realized gains for the third quarter (as per management’s projections) in addition to $101 million of pretax investment gains already realized through 09/11/09 (3) Reflects $30 million of additional pretax investment gains for the fourth quarter as per management’s projections Source: Company Filings, ITHACA management 19

ITHACA Overview and Financial Performance Summary of Historical Performance and Management Projections ⁽¹⁾(Dollars in millions, except per share data) His tor ical Managem ent Pr ojections 2009 2006 2007 2008 1H 2H 2009 2010 2011 2012 Net Premiums Written $2,160.9 $2,089.4 $2,030.8 $938.8 $937.9 $1,876.7 $1,996.7 $2,125.4 $2,263.4 % Growth (6.1%) (3.3%) (2.8%) (7.6%) 6.4% 6.4% 6.5% Combined Ratio 94.4% 95.5% 101.2% 96.5% 96.6% 96.5% 96.3% 95.9% 95.7% Diluted EPS ⁽²⁾ $6.91 $8.23 $8.50 $1.91 $3.22 $5.14 $6.36 $6.69 $7.00 Diluted Operating EPS ⁽²⁾ 3.73 3.32 1.46 2.38 1.86 4.27 4.48 4.75 5.01 Return on Average Equity ^{(2) (3)} 28.3% 25.9% 20.5% 7.9% 11.7% 9.9% 10.4% 9.9% 9.4% Operating Return on Average Equity ^(2)
(3) 15.2% 10.4% 3.5% 9.9% 6.7% 8.2% 7.3% 7.0% 6.7% Book Value Per Share ⁽²⁾ $27.92 $36.78 $45.37 $51.90 $58.39 $58.39 $64.49 $71.21 $78.25 Pre-tax Realized Gains $356.7 $539.1 $692.3 ($44.2) $123.1 $78.9 $170.0 $175.0 $180.0 Notes: (1) Data presented beginning in second half of 2009 does not reflect management’s calculation of unrealized appreciation, realized gains and mark-to-market gains in the investment portfolio from 09/04/09 through 09/11/09; such calculation would increase book value by approximately $1.27 per share (2) As calculated by Sandler O’Neill per management projections from 06/30/09 through year ended 12/31/2010 (3) Does not include the gain on the redemption of the preferred shares in the first half of 2009 and for the full year 2009 Source: Company Filings, ITHACA management 20

Valuation Analysis Selected Market Statistics for Comparable Publicly-Traded Companies (Dollar values in millions, except per share data) % Change Price / 09/17/09 Since 52 wk Price Price / EPS 2009 E Tangible Dividend (1 ) (1 ) (2 ) Company Price 09/04/09 High Low Mkt. Cap. LTM 2009 E 2010 E ROE BVPS BVPS Yield (3 ) ITHACA $62.49 24.81% $63.10 $31.55 $3,654.2 22.9x 16.1x 19.4x 8.6% 1.22x 1.20x 0.48% Based on 09/04/09 Closing Price $50.07 $54.31 $31.55 $2,927.9 18.3x 12.9x 15.6x 8.6% 0.98x 0.96x 0.60% Direct Peers Everest Re Group Ltd. $85.56 0.88% $95.00 $54.77 $5,206.7 10.0 7.9x 7.4x 11.9% 0.94x 0.94x 2.24% TransAtlantic Holdings Inc. 50.54 2.10 70.62 26.16 3,354.6 8.9 7.7 7.5 11.8 0.95 0.95 1.58 Mean 9.4x 7.8x 7.5x 11.9% 0.94x 0.94x 1.91% Median 9.4 7.8 7.5 11.9 0.94 0.94 1.91 Reinsurance Composite Arch Capital Group Ltd. 66.19 1.60 80.47 44.68 4,434.7 11.2 7.0 7.1 15.8 1.10 1.09 0.00 Axis Capital Hldgs Ltd. 29.41 (1.64) 36.00 17.27 4,187.1 11.1 6.9 6.7 11.8 0.84 0.83 2.70 PartnerRe Ltd. 74.40 1.86 76.96 47.70 4,327.6 7.1 7.2 7.7 14.2 1.13 1.02 2.53 Allied World Assurance Co. Holdings Ltd. 46.06 (0.95) 46.99 21.00 2,282.9 5.8 5.5 6.1 15.9 0.95 0.83 1.55 Aspen Insurance Holdings Ltd. 26.28 1.04 32.42 13.53 2,182.3 15.5 6.6 7.0 13.9 0.84 0.83 2.27 Endurance Specialty Holdings Ltd. 34.42 (0.23) 36.00 19.32 1,965.5 9.5 5.8 6.5 14.8 0.94 0.86 2.89 Platinum Underwriters Holdings Ltd. 35.46 2.22 38.76 21.38 1,765.1 11.6 6.5 6.9 13.4 0.90 0.90 0.92 Max Capital Group Ltd. 21.32 4.82 31.00 9.56 1,206.4 NM 7.3 6.7 11.9 0.89 0.89 1.87 Mean 10.3x 6.6x 6.8x 14.0% 0.95x 0.91x 1.84% Median 11.1 6.8 6.8 14.0 0.92 0.87 2.07 Overall Mean 10.1x 6.8x 7.0x 13.5% 0.95x 0.91x 1.85% Overall Median 10.0 7.0 6.9 13.7 0.94 0.89 2.05 Notes: (1) Mean First Call estimates as of 09/17/09 (2) Based on estimated 2009 operating earnings per share divided by 06/30/09 book value excluding AOCI (3) ITHACA 2009 and 2010 estimates calculated as the arithmetic mean of the three Street estimates Source: FactSet, Bloomberg 22

Valuation Analysis Imputed Valuation Based on Selected Publicly-Traded Companies Tr ading Im puted With 25% Multiples Valuation Pr em ium ITHAC A Mean Median Mean Median Mean Median Direct Peers 06/30/09 Book Value per Share $51.90 0.94x 0.94x $48.89 $48.89 $61.11 $61.11 Est. EPS 2009 (Mean Street Est.) $3.89 7.8x 7.8x $30.33 $30.33 $37.91 $37.91 Est. EPS 2009 (Management Case Op. EPS) $4.27 7.8x 7.8x $33.26 $33.26 $41.58 $41.58 Est. EPS 2009 (Management Case with Capital Gains) $5.14 7.8x 7.8x $40.04 $40.04 $50.05 $50.05 Est. EPS 2010 (Mean Street Est.) $3.22 7.5x 7.5x $24.06 $24.06 $30.08 $30.08 Est. EPS 2010 (Management Case Op. EPS) $4.48 7.5x 7.5x $33.51 $33.51 $41.89 $41.89 Est. EPS 2010 (Management Case with Capital Gains) $6.36 7.5x 7.5x $47.57 $47.57 $59.47 $59.47 Reinsurance Comp osite 06/30/09 Book Value per Share $51.90 0.91x 0.87x $47.01 $45.36 $58.77 $56.70 Est. EPS 2009 (Mean Street Est.) $3.89 6.6x 6.8x $25.73 $26.31 $32.16 $32.89 Est. EPS 2009 (Management Case Op. EPS) $4.27 6.6x 6.8x $28.22 $28.86 $35.28 $36.07 Est. EPS 2009 (Management Case with Capital Gains) $5.14 6.6x 6.8x $33.97 $34.73 $42.46 $43.42 Est. EPS 2010 (Mean Street Est.) $3.22 6.8x 6.8x $21.97 $21.82 $27.46 $27.28 Est. EPS 2010 (Management Case Op. EPS) $4.48 6.8x 6.8x $30.59 $30.40 $38.24 $37.99 Est. EPS 2010 (Management Case with Capital Gains) $6.36 6.8x 6.8x $43.43 $43.15 $54.29 $53.94 23

Valuation Analysis Earnings Estimates for Comparable Publicly-Traded Companies YTD Implied Percentage Change 2008 — (1 ) 09/17/09 Analyst Operating 2H 2009 Consensus Est. Operating EPS 2008 — 2009 — 2010 — 2011 Company Price Coverage EPS Op. EPS 2009 2010 2011 2009 2010 2011 CAGR ( 2 ) ITHACA $62.49 3 $2.38 $1.51 $3.89 $3.22 NA 167.1% (17.4%) NA NA Based on Mean First Call Estimates $2.38 $1.19 $3.57 $3.05 NA 144.6% (14.5%) NA NA Direct Peers Everest Re Group Ltd. $85.56 10 $5.91 $4.94 $10.85 $11.52 $12.16 18.9% 6.2% 5.6% 10.0% TransAtlantic Holdings Inc. 50.54 4 3.55 3.02 6.57 6.71 6.85 13.8 2.1 2.1 5.9 Reinsurance Composite Arch Capital Group Ltd. 66.19 13 5.31 4.12 9.42 9.34 9.36 13.6 (0.9) 0.2 4.1 Axis Capital Hldgs Ltd. 29.41 11 2.26 2.00 4.27 4.40 4.81 51.9 3.2 9.4 19.7 PartnerRe Ltd. 74.40 13 5.84 4.56 10.40 9.65 9.30 23.3 (7.2) (3.7) 3.3 Allied World Assurance Co. Holdings Ltd. 46.06 6 4.89 3.48 8.37 7.54 7.27 (6.0) (9.9) (3.6) (6.5) Aspen Insurance Holdings Ltd. 26.28 5 2.48 1.49 3.97 3.77 4.53 124.1 (5.1) 20.1 36.7 Endurance Specialty Holdings Ltd. 34.42 8 3.51 2.38 5.89 5.29 5.67 84.7 (10.3) 7.3 21.1 Platinum Underwriters Holdings Ltd. 35.46 7 3.10 2.34 5.44 5.15 5.09 48.1 (5.4) (1.2) 11.4 Max Capital Group Ltd. 21.32 5 1.65 1.26 2.91 3.20 4.18 NM 9.7 30.6 NM Other Reinsurance Companies RenaissanceRe Holdings Ltd. 53.48 9 5.70 2.74 8.44 7.91 8.21 173.3 (6.2) 3.8 38.5 Validus Holdings Ltd. 24.90 7 2.67 2.07 4.74 4.89 5.15 113.6 3.2 5.4 32.4 Montpelier Re Holdings Ltd. 16.11 5 1.35 0.94 2.29 2.32 2.50 108.9 1.5 7.8 31.7 Argo Group International Holdings Ltd. 35.94 6 2.44 1.97 4.41 4.71 4.78 58.2 6.7 1.5 19.7 Flagstone Reinsurance Holdings Ltd. 10.94 4 1.21 0.69 1.91 2.22 3.05 NM 16.5 37.3 NM Mean 8 63.6% 0.3% 8.2% 17.5% Median 7 51.9 1.5 5.4 19.7 Notes: (1) Mean First Call estimates as of 09/17/09 (2) ITHACA 2009 and 2010 estimates calculated as the arithmetic mean of the three Street estimates Source: FactSet 24

Valuation Analysis After-Market Performance of Selected Reinsurance Initial Public Offerings Since 1996 IPO Price/ 0 9 /0 4/0 9 Price / IPO IPO 0 9 /0 4/0 9 CAGR Pro Forma T angib le Date Issuer Ticker Price Price Since IPO Tangible Book BVPS BVPS 07/24/07 Validus Holdings Ltd. VR $22.00 $24.10 4.40% 1.04x 0.91x 0.85x 05/24/07 Greenlight Capital Re, Ltd. GLRE 19.00 18.50 (1.16) 1.24 1.11 1.11 03/30/07 Flagstone Reinsurance Holdings Ltd. FSR 13.50 10.56 (9.59) 1.12 0.86 0.82 07/11/06 Allied World Assurance Co. Holdings Ltd. AWH 34.00 46.50 10.44 1.15 0.96 0.84 12/03/03 Aspen Insurance Holdings Ltd. AHL 22.50 26.01 2.55 1.27 0.83 0.82 07/01/03 Axis Capital Hldgs Ltd. AXS 22.00 29.90 5.09 1.44 0.86 0.84 02/27/03 Endurance Specialty Holdings Ltd. ENH 23.00 34.50 6.41 1.05 0.95 0.86 10/28/02 Platinum Underwriters Holdings Ltd. PTP 22.50 34.69 6.52 1.06 0.88 0.88 10/09/02 Montpelier Re Holdings Ltd. MRH 20.00 16.04 (3.14) 1.13 0.87 0.87 08/13/01 Max Capital Group Ltd. MXGL 16.00 20.34 3.02 1.10 0.84 0.84 03/07/96 IPC Holdings Ltd. IPCR 22.00 30.74 2.51 1.51 0.86 0.86 Mean 2 .4 5% 1 .16 x 0 .9 1x 0.8 7 x Median 3 .7 1 1 .12 0 .8 8 0.8 5 06 /1 3/01 IT HACA $ 18 .0 0 $5 0.0 7 13 .2 3% 1 .32 x 0 .9 8x 0.9 7 x Source: FactSet, Company Filings 25

Valuation Analysis Selected Publicly-Traded Property / Casualty Acquisitions (Dollar values in millions, except per share data) GAA P Annoc. Deal Equity Enter pr ise Pr ic e/ LTM Pr ic e/ Book Date A cquir or Tar get C ons ider ation Pr ic e Value Value Net O p Inc Est. EPS ⁽¹⁾ Value 07/09/09 Validus Holdings, Ltd. IPC Holdings, Ltd. 25% Cash/ 75% Stock $29.48 $1,665.1 $1,665.1 11.0x 7.1x 0.90x 07/04/09 PartnerRe Ltd. Paris Re Holdings Limited Stock 19.38 2,010.0 2,010.0 9.3 8.3 0.98 06/22/09 Tower Group Specialty Underwriters’ Alliance Stock 6.72 108.0 108.0 19.5 26.9 0.78 07/23/08 Tokio Marine Holdings Philadelphia Consolidated Holdings Cash 61.50 4,722.3 4,722.3 15.9 16.5 2.96 06/30/08 Allied World Assurance Darwin Professional Underwriters Cash 32.00 552.1 557.1 13.2 12.7 2.05 04/23/08 Liberty Mutual Safeco Corp. Cash 68.25 6,182.0 6,886.0 10.1 11.6 1.82 03/13/08 Pallisades Safety and Insurance National Atlantic Cash 6.25 72.7 72.7 NM 6.9 0.50 02/20/08 Meadowbrook ProCentury 50% Cash/ 50% Stock 20.00 273.4 303.1 11.4 11.4 1.70 01/11/08 Employers Holdings AmCOMP Cash 12.50 195.6 232.5 10.9 11.5 1.26 01/03/08 QBE Insurance Group North Pointe Insurance Cash 16.00 146.0 202.5 23.0 17.8 1.55 10/31/07 MAPFRE Commerce Group Cash 36.70 2,250.3 2,549.1 10.9 13.0 1.68 10/17/07 Munich Re Midland Co. Cash 65.00 1,324.7 1,422.9 16.7 16.0 2.16 10/16/07 The Doctors Company SCPIE Cash 28.00 293.1 293.1 19.8 NA 1.37 09/21/07 Rockhill RTW Cash 12.45 67.6 67.6 29.8 NA 1.29 06/25/07 The Hanover Insurance Group Professionals Direct, Inc. Cash 69.61 23.2 29.5 16.8 NA 1.81 06/11/07 DE Shaw James River Cash 34.50 573.2 631.5 15.0 13.6 2.57 05/07/07 Liberty Mutual Ohio Casualty Cash 44.00 2,745.8 2,945.3 13.4 15.0 1.72 03/01/07 Zurich Financial Services Bristol West Cash 22.50 701.6 801.6 16.7 15.2 1.97 12/04/06 Elara Holdings Direct General Cash 21.25 433.7 630.0 14.3 14.3 1.67 11/01/06 American European Group Merchants Group Cash 33.00 70.8 70.8 12.5 NA 0.89 08/04/06 Delek Group Republic Companies Cash 20.40 294.5 346.0 14.7 11.2 1.79 02/28/05 ProAssurance Corporation NCRIC Group, Inc. Stock 10.10 70.1 85.1 NM 11.9 0.97 10/14/04 United National Group Penn-America Group ⁽²⁾ 36% Cash/ 64% Stock 15.38 218.8 248.8 11.7 14.4 1.63 Mean 15.1x 13.4x 1.57x Median 14.3 13.0 1.67 Notes: (1) Mean consensus estimates for the full year period for the year of announcement, as reported on the day prior to announcement (2) Two-tier consideration paid by United National: $15.375 per each public share outstanding plus $13.39 per share for 4.8 million shares held by Penn Independent Corporation, a privately owned insurance broker Source: SNL Financial, A.M. Best, Highline Data, Company Filings 26

Valuation Analysis Market Premiums Paid on Selected Property / Casualty Acquisitions (Dollar values in millions, except per share data) Annoc . Deal Equity Mar ket Pr em ium Date Ac quir or Tar get Pr ic e Value 1-Day 30-Day 07/09/09 Validus Holdings, Ltd. ⁽¹⁾ IPC Holdings, Ltd. $29.48 $1,649.5 16.0% 7.6% 07/04/09 PartnerRe Ltd. Paris Re Holdings Limited 19.38 1,562.4 57.6 56.7 06/22/09 Tower Group Specialty Underwriters’ Alliance 6.72 108.0 69.7 91.5 07/23/08 Tokio Marine Holdings Philadelphia Consolidated Holdings 61.50 4,722.3 73.0 77.1 06/30/08 Allied World Assurance Darwin Professional Underwriters 32.00 552.1 6.0 12.5 04/23/08 Liberty Mutual Safeco Corp. 68.25 6,139.1 50.9 54.9 03/13/08 Pallisades Safety and Insurance National Atlantic 6.25 69.7 14.5 13.0 02/20/08 Meadowbrook ProCentury 20.00 273.4 30.0 37.4 01/11/08 Employers Holdings AmCOMP 12.50 195.6 42.9 27.6 01/03/08 QBE Insurance Group North Pointe Insurance 16.00 146.0 51.2 51.2 10/31/07 MAPFRE Commerce Group 36.70 2,250.3 17.9 24.5 10/17/07 Munich Re Midland Co. 65.00 1,324.7 13.5 20.0 10/16/07 The Doctors Company SCPIE 28.00 293.1 26.8 37.9 09/21/07 Rockhill RTW 12.45 67.6 50.9 69.2 06/25/07 The Hanover Insurance Group Professionals Direct, Inc. 69.61 23.2 55.0 82.0 06/11/07 DE Shaw James River 34.50 573.2 (1.9) 0.4 05/07/07 Liberty Mutual Ohio Casualty 44.00 2,745.8 32.1 43.9 03/01/07 Zurich Financial Services Bristol West 22.50 701.6 38.5 34.1 12/04/06 Elara Holdings Direct General 21.25 433.7 30.8 42.0 11/01/06 American European Group Merchants Group 33.00 70.8 8.6 10.0 08/04/06 Delek Group Republic Companies 20.40 294.5 34.0 16.5 02/28/05 ProAssurance Corporation NCRIC Group, Inc. 10.10 69.6 (7.9) (8.0) 10/14/04 United National Group Penn-America Group 15.38 218.8 24.3 13.9 Mean 31.2% 35.1% Median 30.8 34.1 Notes: (1) Market premiums based on initial announcement of Max Capital Group and IPC Holdings merger on 06/02/09 Source: SNL Financial, FactSet, Company Filings 27

Valuation Analysis Imputed Valuation Based on Selected Property / Casualty Acquisitions Tr ans ac tion Im puted Multiples Valuation ITHA CA Mean Median Mean Median GAAP Multiples LTM Net Operating Income $2.73 15.1x 14.3x $41.14 $39.09 Est. EPS 2009 (Mean Street Est.) $3.89 13.4x 13.0x $52.29 $50.49 Est. EPS 2009 (Management Case Op. EPS) $4.27 13.4x 13.0x $57.34 $55.37 Est. EPS 2009 (Management Case with Capital Gains) $5.14 13.4x 13.0x $69.03 $66.66 06/30/09 Book Value per Share $51.90 1.57x 1.67x $81.24 $86.44 ( 1) Market Premiums 1-Day Prior $50.07 31.2% 30.8% $65.71 $65.48 30-Day Prior $46.55 35.1% 34.1% $62.91 $62.42 Notes: (1) Market premiums based on initial announcement date of 09/04/09 28

Valuation Analysis Selected Financial Services Acquisitions Since 2006 ⁽¹⁾(Dollar values in millions, except per share data) Annoc. Deal Market Premium Da te Acquiror Seller Industry Consid eration Va lue 1 -Day 30 -Day 01/08/09 TD Ameritrade Holding Corp. thinkorswim Group Inc. Broker/Dealer Cash 32%/ 68% Stock $581.2 41.8% 45.6% 10/13/08 Banco Santander S.A. Sovereign Bancorp Inc. Bank Common Stock 1,909.9 (61.2) 16.9 08/18/08 Mitsubishi UFJ Finl Grp Inc UnionBanCal Corp. Bank Cash 3,808.1 61.5 12.3 03/17/08 CME Group Inc NYMEX Holdings Inc. Broker/Dealer Cash 44%/ 56% Stock 9,467.1 0.0 3.4 01/11/08 Bank of America Corp. Countrywide Financial Corp. Bank Common Stock 4,145.3 (36.8) 39.9 10/02/07 Toronto-Dominion Bank Commerce Bancorp Inc. Bank Cash 27%/ 73% Stock 9,157.3 15.4 9.3 09/05/07 Royal Bank of Canada Alabama National BanCorp. Bank Cash 51%/ 49% Stock 1,670.3 58.0 51.6 08/15/07 Fifth Third Bancorp First Charter Corp. Bank Cash 30%/ 70% Stock 1,088.6 57.4 55.9 07/26/07 KeyCorp U.S.B. Holding Co. Bank Cash 46%/ 54% Stock 586.3 32.0 55.0 07/19/07 PNC Financial Services Group Sterling Financial Corp. Bank Cash 42%/ 58% Stock 559.9 84.4 76.6 07/18/07 M&T Bank Corp. Partners Trust Financial Bank Cash 51%/ 49% Stock 555.8 15.1 24.4 07/08/07 Marshall & Ilsley Corp. First Indiana Corp. Bank Cash 540.1 53.5 44.3 06/26/07 People’s United Financial Inc. Chittenden Corp. Thrift Cash 58%/ 42% Stock 1,753.2 26.9 31.5 06/19/07 Madison Dearborn Partners LLC Nuveen Investments Asset Manager Cash 5,759.7 20.3 19.1 05/30/07 Wachovia Corp. A.G. Edwards Inc. Bank Cash 42%/ 58% Stock 6,936.3 23.4 18.2 05/04/07 Wells Fargo & Co. Greater Bay Bancorp Bank Common Stock 1,476.9 7.1 7.7 04/30/07 Deutsche Boerse AG ISE Holdings, Inc. Broker/Dealer Cash 2,777.6 38.3 45.9 04/30/07 National City Corp. MAF Bancorp Inc. Bank Common Stock 1,918.4 35.5 35.7 04/30/07 Susquehanna Bancshares Inc. Community Banks Inc. Bank Cash 14%/ 86% Stock 851.8 41.5 35.5 04/20/07 Fortress Invt Grp Interpool Inc. Asset Manager Cash 807.2 10.5 6.9 02/04/07 State Street Corp. Investors Financial Services Bank Cash 4%/ 96% Stock 4,493.6 52.3 38.9 01/29/07 Merrill Lynch & Co. First Republic Bank Broker/Dealer Cash 50%/ 50% Stock 1,784.3 40.7 42.8 01/09/07 Wells Fargo & Co. Placer Sierra Bancshares Bank Common Stock 644.7 18.0 19.4 12/20/06 Huntington Bancshares Inc. Sky Financial Group Inc. Bank Cash 11%/ 89% Stock 3,592.1 20.0 24.5 11/19/06 Toronto-Dominion Bank TD Banknorth Inc. Bank Cash 3,200.6 7.8 6.5 11/01/06 Rabobank Nederland Mid-State Bancshares Bank Cash 850.4 35.2 21.2 10/08/06 PNC Financial Services Group Mercantile Bankshares Corp. Bank Cash 36%/ 64% Stock 6,027.1 28.5 27.8 08/08/06 Morgan Stanley Saxon Capital Inc. Broker/Dealer Cash 706.1 25.2 23.9 07/26/06 National City Corp. Fidelity Bankshares Inc. Bank Cash 51%/ 49% Stock 1,038.4 25.9 13.5 07/10/06 National City Corp. Harbor Florida Bancshares Inc. Bank Common Stock 1,104.1 23.5 20.8 06/26/06 Citizens Banking Corp. Republic Bancorp Inc. Bank Cash 15%/ 85% Stock 1,033.5 24.4 29.0 06/12/06 Banco Bilbao Vizcaya Argent SA Texas Regional Bancshares Inc. Bank Cash 2,164.6 38.9 14.1 04/23/06 Washington Mutual Inc. Commercial Capital Bancorp Thrift Cash 993.2 10.0 13.6 Mean 2 6.5 % 28 .2 % Med ia n 2 5.9 24 .4 Notes: (1) Includes bank, thrift, asset manager, broker / dealer and specialty finance transactions with announced deal value between $500 million and $10 billion since January 1, 2006; excludes the distressed PNC Financial / National City and JPMorgan / Bear Stearns transactions Source: SNL Financial, FactSet, Company Filings 29

Valuation Analysis Selected Insurance Minority Buy-In Acquisitions ⁽¹⁾ (Dollar values in millions, except per share data) % Change % Ownership Initial Initial Merger from % Premium Annoc. Pre- Post- Deal Offer Offer Deal Agreement Initial to Initial Offer Date Acquiror Target Deal Deal Value Price Date Price Date Offer 1-Day 30-Day 12/01/2008 Fairfax Financial Holdings Northbridge Financial Corp. 63.1% 100.0% $668.0 $36.00 11/13/08 $39.00 12/01/08 8.3% 28.9% 37.0% 03/10/2008 Nationwide Mutual Nationwide Financial Services 66.5 100.0 2,478.9 47.20 03/07/08 52.25 08/06/08 10.7 38.0 18.9 07/17/2007 Alfa Mutual Alfa Corp 54.1 100.0 856.4 17.60 07/17/07 22.00 11/04/07 25.0 44.7 29.8 02/22/2007 American Financial Group Inc Great American Financial 81.0 100.0 235.6 23.50 02/22/07 24.50 05/17/07 4.3 13.2 11.8 01/24/2007 AIG 21st Century Insurance Co 60.7 100.0 811.1 19.75 01/24/07 22.00 05/15/07 11.4 32.6 24.9 03/21/2006 Erie Indemnity Co Erie Family Life Insurance 75.1 (2) 100.0 75.2 32.00 03/21/06 32.00 03/21/06 0.0 17.2 13.3 03/18/2002 ProAssurance Corp Meemic Holdings Inc 84.0 100.0 35.4 28.00 03/15/02 29.00 07/09/02 3.6 11.5 36.1 08/30/2000 AXA-UAP SA ⁽³⁾ AXA Financial Inc 60.1 100.0 11,189.0 53.50 08/30/00 54.63 10/17/00 1.1 4.2 29.9 03/27/2000 Hartford Fin Svcs Group Inc Hartford Life 81.5 100.0 1,304.1 44.00 03/27/00 50.50 05/18/00 14.8 18.6 42.7 03/21/2000 Citigroup Inc Travelers Property Casualty 85.0 100.0 2,396.6 41.50 03/21/00 41.95 03/22/00 1.1 24.5 35.1 01/19/2000 Metropolitan Life Insurance Co Conning Corp 60.4 100.0 95.4 10.50 01/14/00 12.50 03/09/00 19.0 30.7 48.1 Mean 73.5% 100.0% 11.4% 21.4% 26.4% Median 75.1 100.0 9.5 18.6 29.8 Notes: (1) Includes all U.S. insurance minority buy-ins with a transaction value greater than $25 million; consideration consisted of 100% cash in all transactions with the exception of the AXA / AXA Financial transaction (2) Includes ownership held by Erie Insurance Exchange (3) Consideration comprised of 65% cash and 35% stock Source: Company Filings 31

Valuation Analysis Selected Other Industry Minority Buy-In Acquisitions ⁽¹⁾(Dollar values in millions, except per share data) % Change % Ownership Deal Initial Initial Merger from % Premium Annoc. Pre- Post- V alue Offer Offer Deal Agreement Initial to Initial Offer Date Acquiror Target Deal Deal ($mm) Price Date Price Date Offer 1-Day 30-Day 08/12/2008 Bank of Tokyo-Mitsubishi UFJ UnionBanCal Corp. 65.4% 100.0% $3,662.2 $63.00 08/12/08 $73.50 08/18/08 16.7% 26.3% 85.6% 10/23/2007 Investor Group (Poole/Perry) Waste Industries USA Inc. 51.0 100.0 376.2 36.75 10/22/07 38.00 12/17/07 3.4 33.5 32.8 07/12/2007 LVB Acquisition LLC ⁽²⁾ Biomet Inc. 84.7 100.0 1,988.8 38.00 07/06/06 46.00 12/18/06 21.1 47.6 32.0 11/20/2006 Toronto-Dominion Bank TD Banknorth Inc 59.8 100.0 3,188.5 32.00 08/02/06 32.33 10/20/06 1.0 6.1 7.2 10/09/2006 VNU NV NetRatings Inc. 60.5 100.0 328.5 16.00 10/06/06 21.00 02/05/07 31.3 44.1 41.6 09/01/2005 IYG Holding Co. 7-Eleven Inc. 75.5 100.0 1,283.7 32.50 09/01/05 37.50 10/19/05 15.4 32.3 10.8 02/21/2005 Novartis AG Eon labs Inc. 67.5 100.0 831.2 25.00 02/04/05 31.00 02/20/05 24.0 25.0 19.1 03/19/2003 E. I. du Pont de Nemours (EID) DuPont Canada Inc. 76.0 100.0 315.8 20.50 02/26/03 21.00 03/19/03 2.4 12.4 (1.9) 02/19/2002 Sabre Holdings Corp. Travelocity.com Inc. 70.0 100.0 490.9 23.00 02/19/02 28.00 03/05/02 21.7 8.1 2.0 10/10/2001 Toronto-Dominion Bank TD Waterhouse Group Inc. 80.0 100.0 386.0 9.00 10/10/01 9.50 10/30/01 5.6 45.2 32.9 05/23/2001 Electronic Data Systems Corp. Unigraphics Solutions Inc. 86.0 100.0 173.1 27.00 05/23/01 32.50 08/02/01 20.4 52.9 81.7 05/07/2001 BNP Paribas SA BancWest Corp. 58.4 100.0 2,491.0 32.00 05/04/01 35.00 05/08/01 9.4 40.1 0.0 02/15/2001 Westfield America Trust Westfield America Inc. 77.5 100.0 221.3 15.75 02/12/01 16.25 04/14/01 3.2 14.7 12.6 10/27/2000 Enron Corp. Azurix Corp. 66.0 100.0 329.8 7.00 10/27/00 8.38 12/15/00 19.6 131.5 88.7 09/21/2000 Ford Motor Co. Hertz Corp. 81.5 100.0 707.6 35.50 02/02/01 35.50 01/16/01 0.0 0.6 4.0 07/24/2000 Phoenix Home Life Mutual Phoenix Investment Partners 58.0 100.0 433.9 12.50 07/24/00 15.75 09/11/00 26.0 45.7 59.5 03/17/2000 BP Amoco PLC Vastar Resources Inc. 81.8 100.0 1,602.7 71.00 03/16/00 83.00 05/24/00 16.9 31.5 59.0 03/14/2000 Alcoa Inc. ⁽³⁾ Howmet International Inc. 84.7 100.0 367.5 20.00 04/13/00 21.00 06/19/00 5.0 1.2 13.1 Mean 74.0% 100.0% 12.6% 31.8% 27.6% Median 72.8 100.0 12.4 31.9 16.1 Notes: (1) Includes selected U.S. all cash minority buy-in transactions with a transaction value between $250 million and $4 billion and where initial ownership was between 51% and 85% (2) Merger agreement was further amended on 06/07/07 (3) Merger date labeled as date of expiration of tender offer; offer fully completed Source: Company Filings 32

Valuation Analysis Imputed Valuation Based Market Premiums of Selected Minority Buy-In Acquisitions ⁽¹⁾Transaction Imputed Multiples Valuation IT HACA Mean Median Mean Median Selected Insurance Acq uisitions (1) 1-Day Prior Market Premium $50.07 21.4% 18.6% $60.80 $59.41 (1) 30-Day Prior Market Premium $46.55 26.4% 29.8% $58.86 $60.42 % Change from Initial Offer $60.00 11.4% 9.5% $66.84 $65.71 Selected Other Industry Acquisitions (1) 1-Day Prior Market Premium $50.07 31.8% 31.9% $66.00 $66.05 (1) 30-Day Prior Market Premium $46.55 27.6% 16.1% $59.38 $54.05 % Change from Initial Offer $60.00 12.6% 12.4% $67.55 $67.43 Notes: (1) Market premiums based on initial announcement date of 09/04/09 33

Valuation Analysis Management Case ⁽¹⁾(Dollar values in millions, except per share data) For 2009 — 6 Months 2012 Ending For Year s Ending Decem ber 31, C A GR / 12/31/09 2009 2010 2011 2012 A ver age ⁽²⁾GAAP Net Income Available to Common $189.3 $312.0 $373.5 $392.8 $411.4 9.7% Growth % NM 19.7% 5.2% 4.7% Operating Net Income Available to Common $109.2 $252.7 $263.0 $279.1 $294.4 5.2% Growth % NM 4.1% 6.1% 5.5% Pre-tax Realized Gains $123.1 $78.9 $170.0 $175.0 $180.0 Pre-tax Investment Income 140.6 301.0 315.9 325.7 338.0 Return on Average Equity ^{(3) (4)} 11.7% 9.9% 10.4% 9.9% 9.4% 9.9% Operating Return on Average Equity ^{(3) (4)} 6.7% 8.2% 7.3% 7.0% 6.7% 7.3% Diluted EPS ^{(3) (4)} $3.22 $5.14 $6.36 $6.69 $7.00 10.9% Diluted Operating EPS ⁽³⁾ $1.86 $4.27 $4.48 $4.75 $5.01 5.5% Total Common Equity ⁽³⁾ $3,411.6 $3,411.6 $3,767.6 $4,160.4 $4,572.0 10.3% ⁽¹⁾Growth % 24.8% 10.4% 10.4% 9.9% Common Equity per Share ⁽³⁾ $58.39 $58.39 $64.49 $71.21 $78.25 10.3% ⁽¹⁾Dividend Per Common Share $0.15 $0.30 $0.31 $0.32 $0.32 2.5% Average Basic Shares ⁽⁵⁾ 58.5 58.8 58.4 58.4 58.4 Average Diluted Shares ⁽⁶⁾ 58.7 59.2 58.7 58.7 58.7 Notes: (1) Data presented beginning in second half of 2009 does not reflect management’s calculation of unrealized appreciation, realized gains and mark-to-market gains in the investment portfolio from 09/04/09 through 09/11/09; such calculation would increase book value by approximately $1.27 per share; management case was adjus ted to reflect dividends on common shares growing at 2.5% annually (2) Compounded annual growth rates for total common equity and total common equity per share calculated from 12/31/09 through 12/31/12 (3) As calculated by Sandler O’Neill per management projections (4) Does not include the gain on the redemption of the preferred shares for the full year 2009 (5) Excludes foreign restricted shares outstanding and stock options (6) Reflects foreign restricted shares outstanding and stock options based on the treasury stock method Source: Management projections 34

Valuation Analysis Management Case (Dollar values in millions, except per share data) PRESENT VA LU E PER SHA RE Terminal Multiple of 12/31/12 Book Value Per Share 1.00x 1.10x Dis count 10.0% $55.77 $61.34 Rate 11.0% 54.03 59.43 12.0% 52.36 57.59 TO TAL PRESENT VALU E PER SHA RE ( Including Pr es ent Value of Dividends ) Terminal Multiple of 12/31/12 Book Value Per Share 1.00x 1.10x Dis count 10.0% $56.65 $62.22 Rate 11.0% 54.90 60.29 12.0% 53.21 58.44 Notes: Data presented beginning in second half of 2009 does not reflect management’s calculation of unrealized appreciation, realized gains and mark-to-market gains in the investment portfolio from September 4th through September 11th; such calculation would increase book value by approximately $1.27 per share and would lead to an estimated increase in the “Total Present Value Per Share” of $0.88 at 1.00x and $0.97 at 1.10x book value assuming an 11% discount rate. Present value as of 7/1/2009 35

Valuation Analysis Implied Present Value Based on Future Book Value Growth ⁽¹⁾(3.5-Year Time Horizon) Assumptions 6/30/09 Book Value $51.90 2012E Book Value Multiple 1.00x Discount Rate 11% Implied Implied Present 12/31/12E BVPS Assumed Future Stock Value of Total Discount Book CAGR from Market Price at 1.00x Present Future Net (2 ) Rate Value 06/30/09 Multiple BV in 12/31/12E Value Dividends Value 11% $66.85 7.5% 1.00 x $66.85 $46.40 $0.87 $47.27 11% $72.45 10.0% 1.00 $72.45 $50.28 $0.87 $51.15 11% $78.25 12.4% 1.00 $78.25 $54.31 $0.87 $55.18 11% $84.65 15.0% 1.00 $84.65 $58.75 $0.87 $59.62 11% $98.24 20.0% 1.00 $98.24 $68.18 $0.87 $69.06 Notes: * Shaded row indicates Management Projections and does not reflect management’s calculation of unrealized appreciation, realized gains and mark-to-market gains in the investment portfolio from September 4th through September 11^th(1) Data presented beginning in second half of 2009 does not reflect management’s calculation of unrealized appreciation, realized gains and mark-to-market gains in the investment portfolio from September 4th through September 11th; such calculation would increase book value by approximately $1.27 per share (2) Per share Total Net Value does not reflect dilutive impact of options and foreign restricted shares 36