MERNA RENISURANCE II LTD.

Incorporated in Bermuda as an exempted company – registration number 44025.

Listing sponsored by:  First Bermuda Group Ltd.

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Merna Reinsurance II Ltd. Principal-at-Risk Variable Rate Notes – due April 8, 2013.

Issuance of $350,000,000 Principal-at-Risk Variable Rate Notes due April 8, 2013 (the “Notes”) which are exposed to loss events, as specified in the offering circular. The Notes are subject to extension at the election of the Ceding Insurer, as described in the Circular.

The Ceding Insurer is State Farm Fire & Casualty Company