Insurance Code of Conduct. All Bermuda insurers are generally required to comply with the BMA’s Insurance Code of Conduct, which establishes duties, requirements and standards to ensure each insurer implements sound corporate governance, risk management and internal controls. The BMA will consider failure to comply with these requirements when determining whether an insurer is conducting its business in a sound and prudent manner under the Insurance Act and in calculating the operational risk charge applicable in accordance with the insurer’s BSCR model (or an approved internal model). Special Purpose Insurer and Collateralized Insurer Reporting Requirements . Unlike other (re)insurers, SPIs and collateralized insurers are fully funded to meet their (re)insurance obligations; therefore the application and supervision processes are streamlined to facilitate the transparent structure. Further, the BMA has the discretion to modify such insurer’s accounting requirements under the Insurance Act. Like other (re)insurers, the principal representative of an SPI or a collateralized insurer has a duty to inform the BMA in relation to solvency matters, where applicable. SPIs and collateralized insurers are generally required to prepare audited financial statements in accordance with GAAP or other standards recognized by the BMA, as well as annual statutory financial statements, and file these statements with the BMA together with a statutory financial return. Insurance Manager Reporting Requirements . The BMA’s Insurance Manager Code of Conduct requires insurance managers to file an Insurance Manager’s Return, which requires, among other things, details around the insurance manager’s directors and officers, services provided by the entity, and the insurers managed by the insurance manager. Additionally, under the Insurance Act, insurance managers are required to notify the BMA of certain events, such as a failure to comply with a condition imposed upon it by the BMA or the occurrence of a cyber-reporting event. Group Supervision. Pursuant to the Insurance Act, the BMA acts as the group supervisor of the RenaissanceRe Group and it has designated Renaissance Reinsurance to be the “designated insurer” in respect of the RenaissanceRe Group. The designated insurer is required to ensure that the RenaissanceRe Group complies with the provisions of the Insurance Act pertaining to groups and all related group solvency and group supervision rules. Under these rules, the RenaissanceRe Group is required to prepare annual group GAAP financial statements, group statutory financial statements, a group capital and solvency return. a group solvency self-assessment and an FCR. The value of the insurance group’s assets must exceed the amount of the insurance group’s liabilities by the group minimum solvency margin, which is the aggregate of: (i) the individual minimum solvency margin of each qualifying member of the group controlled by the parent company; and (ii) the parent company’s percentage shareholding in the member multiplied by the member’s minimum solvency margin, where the parent company exercises significant influence over a member of the group but does not control the member. A member is a qualified member of the insurance group if it is subject to solvency requirements in the jurisdiction in which it is registered. The group must appoint a group actuary and group auditor approved by the BMA. Insurance groups are required to maintain available statutory economic capital and surplus that is equal to or exceeds the value of its group ECR, which is calculated by reference to the group BSCR (or an approved internal capital model). The BMA expects insurance groups to operate at or above a target capital level of 120% of its group ECR. In addition, under the tiered capital requirements described above, not more than certain specified percentages of Tier 1, Tier 2 and Tier 3 capital may be used by an insurance group to satisfy the group minimum solvency margin and group ECR requirements. We are currently completing our 2021 group BSCR, which must be filed with the BMA on or before May 31, 2022, and at this time, we believe we will exceed the target capital. Our 2020 group BSCR exceeded the target capital level. In addition, the RenaissanceRe Group is required to prepare and submit to the BMA a quarterly financial return. The BMA has certain powers of investigation and intervention relating to insurers and their holding companies, subsidiaries and other affiliates, which it may exercise in the interest of such insurer’s policyholders or if there is any risk of insolvency or of a breach of the Insurance Act or the insurer’s license conditions. The BMA may cancel an insurer’s registration on certain grounds specified in the Insurance Act. Under the provisions of the Insurance Act, the BMA may conduct “on site” visits at the offices of insurers it regulates, and has conducted “on site” reviews of our Bermuda-domiciled operating insurers over the past several years. Economic Substance Act. Under the provisions of the Economic Substance Act 2018, as amended, every Bermuda registered entity engaged in a relevant activity (which includes insurance and holding entity 22