MUTUAL RISK MANAGEMENT LTD. Summary Consolidated Statement of Operations Data (a) (U.S. Dollars in thousands, except share data) Quarter ended Year Ended December 31, December 31, 2001 2000 2001 2000 (unaudited) (unaudited)(b) (unaudited) (audited)(b) REVENUES Fee income $ 38,605 $ 27,829 $ 137,691 $ 99,859 Net premiums earned 82,318 62,573 320,926 254,505 Net investment income 6,665 9,040 27,720 39,332 Net realized capital gains (losses) 5,408 (2,567) (300) (4,735) Other income 466 561 1,444 1,202 ------------ ------------ ----------- ----------- Total Revenues 133,462 97,436 487,481 390,163 ------------ ------------ ----------- ----------- EXPENSES Losses and loss expenses incurred 120,117 94,458 303,849 227,155 Acquisition and underwriting expenses 33,249 34,528 105,196 82,683 Operating expenses 30,127 20,587 102,654 75,342 Interest expense 5,973 4,555 21,917 19,192 Other expenses 1,569 1,012 4,287 4,188 ------------ ------------ ------------ ----------- Total Expenses 191,035 155,140 537,903 408,560 ------------ ------------ ------------ ----------- LOSS BEFORE OTHER ITEMS(a) (57,573) (57,704) (50,422) (18,397) Income taxes (41,416) 22,551 (32,854) 19,133 Minority interest (708) (56) (1,965) 509 Extraordinary loss(c) - (2,500) (949) (6,827) ------------ ------------ ------------ ----------- NET LOSS $ (99,697) $ (37,709) $ (86,190) $ (5,582) ============ ============ ============ =========== DILUTED (LOSS) EARNINGS PER COMMON SHARE(a) Operating (loss) income(d) ($2.47) ($0.79) ($2.04) $0.10 Realized capital gains(losses)- net of tax 0.09 (0.06) (0.01) (0.07) Extraordinary loss(c) 0.00 (0.06) (0.02) (0.17) ----------- ----------- ----------- ----------- Diluted EPS(a) ($2.38) ($0.91) ($2.07) ($0.14) ----------- ----------- ----------- ----------- Weighted average shares outstanding- diluted 41,907,793(f) 41,399,061(e) 41,694,366(f) 41,244,621(e) ============= ============= ============= ============= (a) This presentation is not in accordance with GAAP and is provided for informational purposes only. (b) Certain of the prior year figures have been reclassified to conform with the current year's presentation. (c) Extraordinary loss on extinguishment of debt, net of tax. (d) Operating income - Under generally accepted accounting principles (GAAP), operating income, which excludes realized capital gains losses and extraordinary loss - net of tax, is not separately presented. It is presented here as supplemental information. (e) Excludes the conversion of convertible debentures and options, which have an anti-dilutive effect. (f) Excludes the conversion of convertible debentures, options, warrants and convertible loan, which have an anti-dilutive effect. MUTUAL RISK MANAGEMENT LTD. Summary Data (U.S. Dollars in thousands) Quarter ended Year ended December 31, December 31, 2001 2000 2001 2000 (unaudited) (unaudited)(a) (unaudited) (unaudited)(a) FEE INCOME Insurance Operations $ 1,760 $ 1,773 $ 7,579 $ 6,187 Corporate Risk Management 16,549 13,094 57,865 46,691 Specialty Brokerage 4,900 4,877 18,957 19,039 Financial Services 15,396 8,085 53,290 27,942 ----------- ------------- ------------ ------------- Total $ 38,605 $ 27,829 $ 137,691 $ 99,859 =========== ============= ============= ============= FEE INCOME PROFIT MARGINS Insurance Operations 60% 59% 66% 62% Corporate Risk Management 18% 29% 25% 27% Specialty Brokerage 16% 25% 21% 24% Financial Services 21% 14% 19% 16% ----------- -------------- ------------ ------------- Total 21% 26% 24% 26% =========== ============== ============ ============= UNDERWRITING RATIOS Loss ratio 145.9% 151.0% 94.7% 89.3% Expense ratio 40.4% 55.2% 32.8% 32.5% ----------- -------------- ------------ ------------- Combined ratio 186.3% 206.2% 127.5% 121.8% =========== ============== ============ ============= (a) Certain of the prior year figures have been reclassified to conform with the current year's presentation. MUTUAL RISK MANAGEMENT LTD. Summary Consolidated Balance Sheet Data (U.S. Dollars in thousands, except share data) December 31, December 31, 2001 2000 (unaudited) (audited) Cash and marketable investments $ 640,939 $ 573,089 Reinsurance recoverable 2,541,323 2,307,466 Total assets 5,347,413 4,859,649 Reserve for losses and loss expenses 2,906,039 2,529,183 Debt 354,774 237,268 Total liabilities 5,078,994 4,508,116 Total shareholders' equity 268,420 351,533 Total capitalization 623,194 588,801 Book value per share 6.43 8.45