19 According to the Marsh Q4 2022 Overall directors and o昀케cers (D&O) market capacity throughout 2023 as risk perception becomes heightened continues to expand and is on a steadily increasing trend. amongst D&O carriers. This is especially evident in the U.S. renewal management and There is plenty of opportunity to create competition on growing number of vulnerable business sectors such as executive liability insurance most accounts, which is in stark contrast to 2020 and highly leveraged private equity investors, the dearth of early 2021. Conditions within the London management IPO and SPAC activity, and actual outcomes of pending U.S. index, pricing decreased by liability market have now been softening for more than securities class action claims brought prior to and during the COVID-19 pandemic. For the time being, however, 10% (excluding cyber). 12 months, with an increasing number of D&O programs now witnessing pricing dynamics similar to that of early the marketplace is likely to remain in a well-established 2019 (subject to risk pro昀椀le). However, many factors will softening phase for the near future with opportunities to determine if broad premium reductions may decelerate move away from excess and surplus line markets. U.S. composite insurance pricing change – 34% management and executive liability 30% 28% 28% 25% 25% 27% 28% 23% 21% 15% 11% 7% 2% 3% -6% -10% Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Source: Marsh Specialty and Global Placement