BIC_REGISTRATION_DOCUMENT_2017

GROUP PRESENTATION Risk factors

By meeting the above criteria, BIC’s assets and profitability should be protected to the greatest extent possible. The global cost estimate of the BIC Group insurance programs to third-party insurers amounts to approximately 4 million euros. In the U.S.A., to optimize insurance costs, BIC holds one captive insurance company, SLS Insurance Company Limited (SLS), wholly owned by BIC CORPORATION, which covers the U.S. entities of the 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 Group’s U.S. entities. Another provides coverage for any event that is not covered or payable under any

existing BIC policies (DIC/DIL insurance policy). SLS also provides Medical Stop Loss coverage. The captive is also used to extend BIC’s TRIA coverages by including NBCR coverage. 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 - 2017 REGISTRATION DOCUMENT