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The Reporting Person acquired the Voting Ordinary Shares
to which this Schedule 13D relates for investment purposes in the ordinary course of business, and not with the purpose
nor with the effect of changing or influencing the control or management of the Issuer. An employee of the Reporting
Person, Liu Jie, serves on the board of directors of the Issuer (the "
Board
").
As described in the Current Reports on Form 8-K filed by the Issuer on February 8, 2018 (the "
February
8-K
") and May 17, 2018, the Issuer, Fund III and the other parties thereto entered into an exchange agreement on February
2, 2018 (the "
Exchange Agreement
"). Pursuant to the Exchange Agreement, on May 14, 2018, Fund III acquired (i)
1,039,088 Voting Ordinary Shares and 505,239 of the Issuer's non-voting ordinary shares, par value $1.00 per share (the "
Non-Voting
Ordinary Shares
"), in exchange for 13,500,000 common shares of KaylaRe Holdings Ltd. ("
KaylaRe
") previously
held by HH KaylaRe Holdings, Ltd. ("
HH KaylaRe
"), which is owned by Fund III, and (ii) 165,265 Voting Ordinary
Shares in exchange for 1,444,689 warrants of KaylaRe previously held by HH KaylaRe. As described in the February 8-K, the Issuer
has agreed to use reasonable best efforts within 90 days of the closing of the exchange transaction, to register for resale pursuant to
the Securities Act of 1933, as amended, the Voting Ordinary Shares issued to Fund III.
Except as disclosed in this Schedule 13D, the Reporting
Person currently has no plans or proposals that relate to or would result in any transaction, event or action
enumerated in paragraphs (a) through (j) of Item 4 of Schedule 13D. The Reporting Person and its representatives may
and from time to time engage in discussions with members of management, and the Board, other current or prospective shareholders, industry analysts,
existing or potential strategic partners or competitors, investment and financing professionals and other third parties regarding
a variety of matters relating to the Issuer, which may include, among other things, the Issuer’s business, management,
capital structure and allocation, corporate governance, Board composition and strategic alternatives and direction, as well
as pursue other plans or proposals that relate to or could result in any of the matters set forth in clauses (a)-(j) of Item
4 of Schedule 13D.
The Reporting Person intends to review its investment in the Issuer on a continuing basis. Depending on various
factors, including, without limitation, the outcome of any discussions referenced above, the Issuer's financial position, results
and strategic direction, actions taken by the Issuer's management and the Board, price levels of the Securities (as defined below),
other investment opportunities available to the Reporting Person, conditions in the securities market and general economic and
industry conditions, the Reporting Person may in the future take such actions with respect to its investment in the Issuer as it
deems appropriate, including, without limitation, exchanging information with the Issuer or other third parties pursuant to appropriate
confidentiality or similar agreements; proposing changes in the Issuer's operations, management, Board, governance or capitalization;
acquiring additional equity, debt, notes, instruments or other securities of the Issuer (collectively, "
Securities
")
or disposing of some or all of the Securities beneficially owned by it, in public market or privately negotiated transactions;
entering into financial instruments or other agreements that increase or decrease the economic exposure of the Hillhouse Entities
with respect to their investment in the Issuer and/or otherwise changing the Reporting Person's intention with respect to any and
all matters referred to in Item 4 of Schedule 13D.
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