The document provides an overview of Ageas Continental Europe's non-life insurance activities in Portugal, Italy, and Turkey. It summarizes Ageas' transition from a portfolio of disparate entities to a coherent portfolio with a focus on partnerships. Specifically in non-life, it has established partnerships in Portugal, Italy, and Turkey, obtaining leading market positions. It discusses the insurance environment challenges and opportunities in these markets and Ageas' strategy to pursue organic and external growth, prioritizing actions to improve business performance and pursue new partnerships.

1. Continental Europe
From a disparate to a
coherent portfolio of
activities
Steven Braekeveldt
CEO Ageas Continental
Europe
INVESTOR DAY 2012

2. From a disparate to a coherent portfolio of activities
Continental Europe in 2009 vs. today
Life
Life
Non-Life
Mixed
Non-Life
Mixed
(6%) Non-Life (EUR 0.1 bn)
Non-Life (EUR 0.5 bn)
Inflows* 6M 2009: EUR 1.7 bn
(94%) Life (EUR 1.6 bn)
Inflows* 6M 2012: EUR 2.1 bn
(75%) Life (EUR 1.6 bn)
 Portfolio of entities with small market positions
 Focus on core entities
 Mix of wholly-owned subsidiaries, greenfield,
partnerships,…
 Clear focus on partnerships
 Dominance Life savings (35%Life inflow)
 Strategic shift towards Protection
(Non-Life and Life risk)
 Portfolio of entities (geographic approach)
 Integrated approach: tight internal cooperation
 Transformation from a Sell & Hold strategy towards a Buy & Build strategy
 Focus switch from portfolio restructuring to supporting growth of local operating companies
*incl. non-consolidated partnerships at 100%
Investor Day 24&25 September 2012 - Andaz Liverpool Street London
1

3. Continental Europe today
Zoom in on Non-Life activities
GWP 6M 2012
Luxembourg (Life)
France (Life)
Portugal (24%)
Turkey (56%)
EUR 537 mio
Portugal (Life + Non-Life)
Ownership: 51%
#2 overall insurer (Life + NL)
Inflows 2011: EUR 1,308 mio
- Life: EUR 1,071 mio
- Non-Life: EUR 237 mio
Turkey (Non-Life)
Ownership: 36%
#3 Non-Life insurer
GWP 2011: EUR 177 mio*
Italy (20%)
* Consolidated amount – GWP 2011:
TRY 1,137 mio (EUR 486 mio)
Italy (Non-Life)
Ownership: 25%
#3 Non-Life insurer
GWP 2011: EUR 216 mio
Investor Day 24&25 September 2012 - Andaz Liverpool Street London
2

4. Continental Europe today
Zoom in on Non-Life activities
Portugal

JV with MBCP (N°2 bank in Portugal - 880 branches - 3 million clients)

Partnership in bancassurance

25 years exclusive distribution agreement with MBCP
Italy

Strategic partnership in Non-Life bancassurance with BNP Paribas Cardif and UBI Banca
(N°4 bank in Italy – 2,000 branches – 4 million clients)

10 years exclusive distribution agreement with UBI Banca
Turkey

Acquisition of a 36% stake in Aksigorta, the N°4 Non-Life insurer at that time (N°3 today)

Distribution: combination of agency network (1,600 agents) with bancassurance through
Akbank (N°4 bank in Turkey - 900 branches - 8 millions clients)

15 years exclusive distribution agreement with Akbank
Investor Day 24&25 September 2012 - Andaz Liverpool Street London
3

5. Insurance environment
Non-Life Insurance: present challenges
 Economic slowdown

 Better informed and
in Europe (esp.
Portugal & Italy)
Volatile capital
markets



Economic
environment Customers
 Lower credit

production by banks
impacts associated
sales
Increasing diversity
and competition
between distribution
channels(affinities,
retailers,
aggregators…)
Distribution
Investor Day 24&25 September 2012 - Andaz Liverpool Street London
Regulation
demanding
Hybrid customers
More price focus and more
selective
Raising claims frequency
and fraud
 Increasing new
regulations (Solvency II,
Gender Ban, Worker
Compensation Act in
Portugal, Bersani and
Monti laws in Italy, Turkish
rules re. calculation of
reserves, …)
4

6. Insurance environment
Non-Life Insurance: opportunities
 Young and dynamic


population in Turkey
Decline in investment
income drives focus
on underwriting
performance
Aging population in
Europe creates
potential in Health
 New technologies’

Economic
environment Customers
Distribution
 Banks increased focus

on fee and
commission income
Opportunities to
further grow nonassociated sales in the
bank channels
Investor Day 24&25 September 2012 - Andaz Liverpool Street London

availability enable new
approaches:
Personalized, pro-active
and real-time
communication via social
media
Tailor-made Motor
products via Telematics
Regulation
 Turkey: introduction of a
compulsory insurance
disaster policy
5

7. Strategy for Non-Life
Organic growth
External growth
 Focus on sustainable profitability
 3 entities with specific skills, know-how and stage of
development
Integrated approach with tight internal cooperation
Products
• Portugal: New
P&C products
• Italy & Turkey:
Increase nonMotor contribution
Operational Excellence
• Portugal: Medis
• Italy & Turkey:
- Pricing,
- Segmentation,
- Reserves methodology,
- Claim process,
- Fraud prevention
Distribution
• Portugal: New
P&C products
• Italy & Turkey:
Increase nonMotor
contribution
 Add-on acquisitions in
existing markets to reinforce
our position
 New markets
− Preferably Emerging
markets
− Partnership model
− Leading market position
− Meaningful contribution
− ROE > 11%
Pool of people and technical skills available
Investor Day 24&25 September 2012 - Andaz Liverpool Street London
6

8. Road map prioritizing our actions for external growth
 Process and value chain optimized for new partnerships
 Allows immediate roll-out of best practices and transfer of knowledge
 Three distinct phases with clear priorities :
Quick wins
(0-6 months)
 Improving the financials :
•Active management of
Investment portfolio
•Balance sheet analysis
 Integration in Knowledge
Sharing Platform (Fraud,
Claims, Cross selling,
Bancassuance, Agents,…)
 Governance and reporting
standards
Improving business case
(6-18 months)
 Portfolio optimization
• Diversification of product mix
• Improving existing products
(if relevant)
 Distribution optimization
• Bancassurance
• Agents
 Technical performance:
• Underwriting
• Pricing
• Segmentation
• Claims
• Fraud
• Reinsurance (insourcing vs.
outsourcing of risks)
Investor Day 24&25 September 2012 - Andaz Liverpool Street London
LT development
Projects(>18months)
 Co-development of new,
complementary products
 Introduction of additional
distribution channels
 IT systems
 Advanced Risk Management
 Advanced Capital Management
(e.g. Solvency II)
7

9. Ensure sustainable profitability
Portugal (1/3)
GWP breakdown – Evolution 2009-2011 (in EUR mio)
GDP growth in 2011*) and contracting
insurance market (-0.9% in 2011), Mbcp
Ageas increased its Non-Life premiums by 2%
CAGR: +2.9%
214
231
237
31%
30%
31%
P&C business
 Health dominates, representing 59% of the
31 %
58%
Health
60%
11 %
2009
total Non-Life portfolio and a market share of
25% (Medis business model)
Motor
 In total Non-Life, Mbcp Ageas remains a
59%
60 %
58 %
11%
 In a context of economic recession (-1.6%
10%
10 %
2010
10%
10 %
modest player (market share of 5.5%)
2011
Evolution of Mbcp Ageas compared to the market
 A business transformation plan is set up to
)
(current year vs. prior year, GWP in EUR mio)
Mbcp Ageas
increase P&C and Motor contributions
Portuguese Market
GWP
Market share
GWP
Evolution
June 2012
June 2012* June 2012
Evolution
Total Non-Life
125.9
1.0%
5.6%
2,058.7
(3.90)%
Health
78.7
(1.8)%
24.7%
315.9
0.00%
Personal Accidents
Worker
Compensation
Fire
7.5
7.4%
9.3%
65.2
(4.30)%
3.8
25.7%
1.2%
295.5
(10.30)%
22.4
4.5%
6.9%
400.3
9.9
(4.1)%
1.3%
822.7
(4.60)%
Other
3.6
30.0%
2.3%
159.1
(i) ensuring profitability drivers defending the
product margin while balancing the portfolio
(ii) growing in stand-alone sales
(iii) operating simple and efficient processes
(1.50)%
Motor
 Strategic priorities aim at :
(0.80)%
Note: market share are calculated over the rolling last 12 months
Investor Day 24&25 September 2012 - Andaz Liverpool Street London
*Source: World bank
8

10. Ensure sustainable profitability
Portugal (2/3)
Evolution of Non-Life operating margin, 6M 2011-2012
In EUR mio – before costs allocation
H1 2011: Total Non-Life operating margin = EUR 32 mio
13.2 13.1
H1 2012 : Total Non-Life operating margin = EUR 35 mio
9.1 8.8
7.5
2011: Measures taken to improve technical
5.5
5.1
3.7
margins (e.g. Non-Life Claims platform)
Strong MS in Health and PA but still modest
Health
Motor
Fire
position in the Non-Life market (5.5%)
Other P&C
17.1%
47%
33.3%
nc
Op margin/GWP
24.7%
1.3%
6.9%
nc
Market share
(6M 2012)
Evolution of GWP per business line, 6M 2009-2012
In EUR mio
CAGR 2009-2012:
+5.8%
Evolution of Net profit in Non-Life, 6M 2011-2012
In EUR mio - 100% figure
6M 2009
76.8
6M 2010
64.9
CAGR: +20.3%
9.5
7.9
6M 2011
CAGR
2009-2012:
+5.3%
CAGR
2009-2012:
-3.4 %
19.2
12.1
6M 2012
22.4
10.9
3.6
Motor
WC
7.1
3.8
Fire
Health
7.5 4.1
1.8 1.6
PA
PPP
2.6
Other
Investor Day 24&25 September 2012 - Andaz Liverpool Street London
6M 11
6M 12
9

11. Ensure sustainable profitability
Portugal (3/3) - Focus on Health
Health Insurance Market in Portugal:
 National Healthcare Service (NHS) is mainly public and Financing
is done through taxes
 Quality of logistics and speed to access health services are poor
 Private health insurance plans covers 10% of population
 Private provision of healthcare is focused on Hospitalization,
Specialist care and Pharmacy
 Based on the characteristics of Health
insurance Market in Portugal, Mbcp Ageas
launched its Health insurance platform in
1996: Medis.
 Innovating business model : the first to
introduce a managed care system in
Portugal providing high quality health care
 Operating model based on an integrated
system, a strong network of providers and
a multi-channel approach
Operating Model :
 2008: Medis grows twice the market and
 Customers are identified via their Medis card
 The system validates eligibility for medical act
 Through Medis site, Provider introduces the medical act code and
diagnosis
 The system informs the Provider of (i)the amount to be paid by the
customer and (ii) the amount to be paid to the Provider
 Medis pays directly to the Provider
7% Agents
20,5%
Distribution
Agreements
3% Direct Sales
69,5%
MBCP
Branches
Investor Day 24&25 September 2012 - Andaz Liverpool Street London
registers the best satisfaction index for
customers and providers (97% customer
satisfaction in 2010 in Nielsen survey)
 2010: Medis represents EUR 136 mio
GWP
 2012: with a strong 25% market share,
Medis ranks 2nd on the Health insurance
market in Portugal (N° 1 = CGD with 33%)
 Healthcare is a business in which Ageas
has competences and expertise and in
which we believe we can grow
10

12. Ensure sustainable profitability
Italy (1/2)
GWP breakdown: Evolution 2009-2011
In EUR mio CAGR 2009-2011: +1,3%
210 mio
213 mio
15,5 %
10%
10,5%
216 mio
11%
35,5%
43,5%
Motor
38%
11%
30,5%
2009
36%
Accident &
Health
39%
36%
2010
 Strong performance in CPI Core
and Non-Motor
Others
Fire
14%
11,5%
 Focus on profitable growth (product
mix switch to more profitable LoB)
2011
Auto excluded South 2012 net production in #
439 2012
312
123
(129)
Jan
(376)
Feb
(376)
(322)
(78)
Mar
Apr
(429)
203
2011
(99)
May
Jun
 Better segmentation in Motor
 Reduction of Loss ratio on Motor
business (Over 3 points improvement
as lack of big claims in H1 2012)
(638)
Investor Day 24&25 September 2012 - Andaz Liverpool Street London
11

13. Ensure sustainable profitability
Italy (2/2)
 Actions taken in 2011 to improve business
Health 2012 total net production in #
and redress profitability (a.o. banc
assurance product offer simplification)
 Portfolio being pruned, now set for growth:
 New products to increase non-Motor
contribution (BluFamily, new CPI, new
Household policies)
 Operations optimization:
− Claims management (rationalization of
claims settlement center)
− Implementation of a successful Fraud
Prevention Program (Black box)
1501
2012
1377
913
838
933
455
2011
830
479
Jan
393
352
Feb
Mar
Apr
476
290
May
Jun
 Introduction of a new Health product, Blu
Family, launched in Jan. 2012 and leading
to increased sales in Health
Investor Day 24&25 September 2012 - Andaz Liverpool Street London
12

14. Leverage growth potential & enhance profitability
Turkey (1/2)
 Phase 1 “Quick wins” realized in 2011 (a.o.
Evolution of GWP per business line (Ytd)
In TRY mio
financials improved via active management of
the investment portfolio, workshops on
Knowledge Sharing)
706
607
15%
16%
9%
8%
11%
8%
Health
Gen. losses
Other
47%
2%
14%
6M 11
Motor
2%
17%
51%
Marine
Fire
 Now: Phase 2 “Improving business case”:
 Strategic shift towards non-Motor
 Agency channel profit and effectiveness
6M 12
optimization
Focus on profitable growth – Market GWP Analysis
June 2012
Aksigorta
Market
 Underwriting / Pricing / Reserves Methodologies
 Claims process reengineering (Claim
Management, Fraud prevention, IT systems, …)
Top 10
55%
 Bancassurance
45%
43%
38%
31%
18%
19%
16%
13%
10%
21%
15% 15%
14%
22%
23%
22%
22%
65%
59%
8%
3% 2%
Total
GWP
Fire
Marine
Motor
Other
General
losses
Health
Investor Day 24&25 September 2012 - Andaz Liverpool Street London
13

15. Leverage growth potential & enhance profitability
Turkey (2/2)
Evolution of GWP per distribution channel (Ytd)
In %
Direct sales (13%)
108
Brokers (9%)
Banks (13%)
Evolution of combined ratio
EUR 275
mio
Agencies (65%)
107 Market (Non-Life)
106.5
106
101.6
6M 11
99
Direct sales (11%)
Aksigorta
Brokers (13%)
EUR 302
mio
Agencies (59%)
2009
Banks (14%)
2010
2011
6M 12
Investor Day 24&25 September 2012 - Andaz Liverpool Street London
14

16. Conclusion: Robust Performance
of Ageas Continental Europe Non-Life activities
Combined ratio CEU** 2009 – 6M 12
Non-Life – evolution of GWP
In EUR mio
537
Other
83
101.3%
Fire
87
CAGR: +61% *
27.6%
62.4%
27
81
Accident &
Health
29.2%
29.3%
25.4%
27.5%
71.0%
66.4%
70.1%
67.3%
64.9%
61.0%
2010
2011
3M 11
6M 11
3M 12
6M 12
170
2009
6M 09
30.3%
88.5%
197
128
10
12
96.6%
90.3%
30.3%
Motor
99.3%
96.7%
90.0%
6M 12
* integration Turkey as of end 2011
claims ratio
expense ratio
** excluding Turkey
 Blueprint set up and ready for deployment Vision 2015
 Pool of people with technical skills available for execution
Investor Day 24&25 September 2012 - Andaz Liverpool Street London
15

17. Disclaimer
Certain of the statements contained herein are statements of
future expectations and other forward-looking statements
that are based on management's current views and
assumptions and involve known and unknown risks and
uncertainties that could cause actual results, performance or
events to differ materially from those expressed or implied in
such statements. Future actual results, performance or
events may differ materially from those in such statements
due to, without limitation, (i) general economic conditions,
including in particular economic conditions in Ageas’s core
markets, (ii) performance of financial markets, (iii) the
frequency and severity of insured loss events, (iv) mortality
and morbidity levels and trends, (v) persistency levels, (vi)
interest rate levels, (vii) currency exchange rates, (viii)
increasing levels of competition, (ix) changes in laws and
regulations, including monetary convergence and the
Economic and Monetary Union, (x) changes in the policies of
central banks and/or foreign governments and (xi) general
competitive factors, in each case on a global, regional and/or
national basis. In addition, the financial information
contained in this presentation, including the pro forma
information contained herein, is unaudited and is provided
for illustrative purposes only. It does not purport to be
indicative of what the actual results of operations or financial
condition of Ageas and its subsidiaries would have been had
these events occurred or transactions been consummated
on or as of the dates indicated, nor does it purport to be
indicative of the results of operations or financial condition
that may be achieved in the future.
Investor Day 24&25 September 2012 - Andaz Liverpool Street London
16