BIC - 2018 Registration document

RISKS

Risk management and internal control procedures implemented by the Company Risk management and internal control procedures

In the U.S.A., to optimize insurance costs, BIC holds one captive Radiological) coverage. Other coverages were considered, insurance company, SLS Insurance Company Limited (SLS), wholly however, due to the good loss history of BIC, self-insuring those owned by BIC CORPORATION, which covers the U.S. entities of the risks is not financially efficient.

Group. SLS also provides BIC with a means to have some insurance coverage for certain risks that are not covered by traditional insurance. BIC Corporation, and its subsidiaries, are insured by SLS through several insurance policies. One of them provides Products Liability coverage and issues Product Liability Insurance certificates for customers of the BIC Group’s U.S. entities. Another provides coverage for any event that is not covered or payable under any existing BIC policies (DIC/DIL: Difference in Conditions / Difference in Limits, insurance policy). SLS also provides Medical Stop Loss coverage. The captive is also used to extend BIC’s TRIA (Terrorism Risk Insurance Act) coverages by including NBCR (Nuclear, Biological, Chemical and

Actions relating to products liability are initiated primarily in the United States. The amount of provisions to cover this risk is limited to 5 million U.S. dollars, which is the amount of coverage provided by SLS to BIC U.S. entities. In 2016, the limit of insurance provided by SLS for Public and Products Liability was challenged with the help of an insurance broker. Based on BIC’s loss history in the U.S.A. and the current state of the insurance market, it was confirmed that 5 million U.S. dollars is an appropriate captive self-insured retention for BIC’s U.S. entities. The other entities of the BIC Group are insured under traditional insurance programs.

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• BIC GROUP - 2018 REGISTRATION DOCUMENT •