Embarcadero Re Ltd. is a Bermuda Exempted Company licensed as a Special Purpose Insurer under the Bermuda Insurance Act 1978.

The purpose of the Principal-at-Risk Variable Rate Notes Program is to provide the issuer with funds in order to support its obligations under the respective reinsurance contracts it enters into with the Ceding Insurer, the California Earthquake Authority, as specified in the Offering Circular Supplement.

Embarcadero Reinsurance Ltd. Series 2012-II Class A Principal-at-Risk Variable Rate Notes Due 7 August, 2015 (“the Notes”) are issued under the Variable Rate Note Program. The Notes constitute a  $300 million issuance under the Exchange’s Restricted Marketing provisions for Qualified Investors and Section V of the BSX Listing Regulations pertaining to International Issuers of Insurance Related Securities.