Integral ILS Ltd

Item 5: Fees and Compensation
Integral and/or its affiliates are compensated for the services performed by way of management fees
and administration and servicing fees for risk transformation services. The fee rates and method of
calculation and payment are set forth in the applicable Fund Offering Document and are generally
calculated and accrued monthly in arrears based on the month-opening net asset value of the fund or as
a percentage of the reinsurance premium for the administration and servicing of risk transformation
services. Investors should consult the applicable Fund Offering Documents or investment
management agreement for more detail.

Investments by principals and employees of Integral or their respective affiliates will not be subject
to management fees or performance fees.

Management fees are deducted from Investors’ assets invested in the Funds. Administration and
servicing fees for risk transformation services are charged on reinsurance premiums and are
reflected in the value of the net value of the Notes. Investors do not have the ability to choose to be
billed directly for fees incurred.

As described above, the management fee is accrued monthly in arrears and generally settled on a
monthly basis, and in the event of a redemption or withdrawal on a date other than December 31,
in respect of the period ending as of the date of such redemption or withdrawal with respect to the
amount redeemed or withdrawn portion. However, in relation to any Loss Reserve Accounts, fees
are accrued but not paid until the Loss Reserve Account amounts are transferred back to the main

Form ADV Part 2 Brochure

share class, pursuant to the terms of the Fund Offering Documents. Administration and servicing
fees for risk transformation services are accrued monthly as reinsurance premiums earned and
generally settled on a quarterly basis when premiums are received. As administration and servicing
fees are only charged on reinsurance premiums, fees are not charged on undeployed capital or in
relation to any Loss Reserve Accounts.

At times, the Funds invest in short-term liquid investments, such as money market mutual funds. In
these instances, Funds separately incur mutual fund expenses. Funds also separately incur custody
fees, brokerage, premium taxes and transactions costs, including instances where a transaction is not
consummated. Please see Item 12 for our discussion of our brokerage practices.

Expenses paid by the Funds, and consequently indirectly by investors in the Funds, in addition to
the management fee and costs noted above, include Fund operating expenses, (including through
reimbursement of Integral and its related parties) related to its operation, administration, brokerage
and management, including, without limitation: audit and tax preparation fees; Fund administration
fees; costs, expenses and fees for non-executive Directors, attorneys, accountants, actuaries,
consultants and other professionals or experts not employed by Integral; the Fund’s insurance
premiums, including directors and officers liability insurance premiums; bank charges; registration
and filing fees directly attributable to the Fund, including annual registration fees with the BMA;
regulatory and self-regulatory fees and expenses, including self-regulatory organization
membership fees; corporate and insurance licensing fees; corporate secretarial fees, including fees
related to provision of the registered office; custodial fees; hedging costs, including the costs of
currency hedging; all fees and expenses incurred in connection with collateral security structuring
and servicing, including trustee fees, letter of credit and facility fees, custodial fees, bank charges,
external legal fees and other costs relating to the Fund providing collateral or holding securities,
either directly or indirectly; valuation services expenses; costs of printing and mailing reports and
notices to Shareholders; other investment expenses, such as commissions, interest on margin
accounts and other indebtedness; and other expenses related to the purchase, sale, transmittal or
resolution of the Fund’s assets and all other operating expenses and/or liabilities in connection with
or arising out of its business, including extraordinary or non-recurring expenses, such as
indemnification and litigation expenses.

Additionally, the Funds will (i) be responsible for the payment of the expenses which are directly
attributable to it as a result of Integral Re conducting reinsurance activities in respect of the Fund
and (ii) bear, through its investment in the Notes, its allocable portion (which may be the entirety)
of Integral Re’s ongoing expenses. Such ongoing expenses may include fees paid to Integral by
Integral Re such as administration and servicing fees on certain transactions as permitted in the
respective Funds’ offering documents; Integral Re reinsurance trust trustee fees; reinsurance and
insurance brokerage fees; premium taxes, ceding and trading commissions; underwriting expenses,
including fronting and tail-risk fees payable to fronting carriers; hedging costs, including premiums
for reinsurance and retrocessions and other protection contracts; bank and custody charges; filing
fees; corporate secretarial fees; general operation costs; third-party insurance administrator fees;
brokerage and management fees and expenses, including, without limitation, audit and tax
preparation fees, legal fees, fees of the directors of Integral Re that are unaffiliated with Integral,
filing and registration fees of Integral Re including annual registration fees with the BMA; and
Integral Re’s insurance premiums, including directors’ and officers’ liability insurance premiums,
and any extraordinary costs, such as indemnification and litigation expenses.

The foregoing list of expenses is not intended to be exhaustive or complete with respect to any Fund

Form ADV Part 2 Brochure
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