Copyright © 2017 Willis Towers Watson. All rights reserved.NA-2017-17037

willistowerswatson.com

Commercial Surety Solutions

About Willis Towers Watson

Willis Towers Watson (NASDAQ: WLTW) is a leading global advisory, broking and solutions company that helps clients around the world turn risk into a path for growth. With roots dating to 1828, Willis Towers Watson has 40,000 employees serving more than 140 countries. We design and deliver solutions that manage risk, optimize benefits, cultivate talent, and expand the power of capital to protect and strengthen institutions and individuals. Our unique perspective allows us to see the critical intersections between talent, assets and ideas – the dynamic formula that drives business performance. Together, we unlock potential. Learn more at willistowerswatson.com.

Types of Commercial Surety Bonds�� Court – Judicial & Fiduciary

�� Customs

�� Financial Guarantee

�� Lease Guarantee

�� License/Permit

�� Lost Instrument

�� Notary Public/Public Official

�� Performance (non-construction)

�� Self Insured/Worker’s Comp

�� Tax

Serving these Industries�� Developers/Homebuilders/Real Estate

�� Energy/Utilities

�� Financial Services

�� Healthcare

�� Hospitality

�� Manufacturing

�� Media

�� Mergers & Acquisitions

�� Mining

�� Private Equity

�� Retail

�� Service Contractors

�� Solar

�� Technology

�� Telecommunications

�� Transportation

ContactScott Hull Global Head of Surety scott.hull@willistowerswatson.com

Goly Jafari Global Head of Surety Operations golnaz.jafari@willistowerswatson.com

For general inquiries, please contact: wtwglobalsurety@willistowerswatson.com

Willis Towers Watson is the leading global brokerage firm in the surety industry and one of the largest producers of surety bonds, with more than 300 dedicated professionals worldwide. Our reputation within the surety underwriting community is based on results. Since 1994, we have exhibited the lowest surety loss ratios among the major global brokers. We have expertise in a vast majority of industries, including construction, healthcare, hospitality, education, energy, transportation, mining, technology, finance, real estate and global manufacturing. Our global surety capabilities, resources and platform enable us to meet the needs of clients worldwide.

Willis Towers Watson excels at delivering creative solutions to difficult problems. Willis Towers Watson’s expertise with onerous placements is unmatched given its breadth of experience with all bonds within the surety spectrum. We manage programs for many Fortune 500 companies as well as numerous multinational companies based outside of the US.

We will partner with you to deliver surety programs and solutions that expand your growth potential, positioning you to establish and sustain a market leadership position in your industry.

Our Capabilities We help clients navigate the complexities of the dynamic surety market and offer a clear view of the process required. Our approach to ensuring stable and streamlined surety programs always includes:

�� Customized strategies for surety capacity

�� Depth of industry knowledge with a broad understanding of market trends and movements, providing clients with insight to make informed decisions concerning surety

�� Strong relationships and influence with a broad spectrum of surety markets enabling Willis Towers Watson to best match your needs with the right surety partner

�� Domestic and International surety bond placement and credit capabilities

�� Key relationships with executives of all major sureties

�� Delivering solutions with the best markets, combined with competitive pricing

Surety Bonds – vs – Letters of Credit As Surety bonds remain the most cost effective form of credit, a growing number of companies are now maximizing their surety capacity to replace LOC’s and release restricted capital at preferred terms. Surety bonds not only reduce risk to your balance sheet, but also provide valuable working capital by freeing up bank facilities.

Surety Bond Bank Letter of Credit

Security �� Proof of law instrument

�� Surety bonds issued mainly on an unsecured basis

�� No affect on your credit line

�� Sometimes viewed as credit enhancement

�� Pay on demand instrument

�� Causes reductions in existing credit lines

�� Increased borrowings reflected as liability on financial statement

�� Bank requires:

�� Indemnity

�� Potential personal guarantees

�� Pledged assets

Cost �� Cost of surety bond can range from 0.5-3% per year

�� Cost based on face value of bond over its duration

�� Fixed annual premium price

�� Cost of bank guarantee varies

�� Overall costs are difficult to calculate

�� Direct and indirect costs are hard to assess given that hard assets are tied up with a bank facility

Service �� Wording flexibility available to allow personalization to client needs

�� Dedicated and specialized service

�� No wording flexibility

�� Little or no dedicated service regarding the bank guarantee itself

�� Small product bundled with packaged financing

Unmatched

expertise and dedication

to commercial surety

Dedicated global

Suretyteam

Proven success in placing single bonds in

excess of

$200M, including multiple single placements

over $1B

In excess of

$50BSurety guarantees

annually

$500Mof Global SuretyPremiums

30%of the Top

Fortune 500firms are our clients