This document summarizes the financial performance of Victoria, a Bulgarian insurance subsidiary, between 2007-2012. Key points include: - Gross written premiums grew 15.8% annually on average, increasing Victoria's market share and ranking. - Net combined, loss, and expense ratios improved after portfolio restructuring in 2010-2011 toward more profitable lines. - Investments grew significantly and shifted toward lower risk assets like bonds per the parent company's strategy. - Net profits fluctuated but were positive in recent years, and forecasts predict over €2 million for full-year 2012.

1. Results achieved
between 2007 and
30.06.2012
Rome, 1st
October 201

2. 2
Agenda
 Subsidiary’s profile at acquisition date
 Results achieved between 2007 and 30.06.2012
 Gross written premiums
 Portfolio’s structure
 Sales network and number of employees
 Premiums per sales channel
 Performance indicators
 Investments
 Capital invested in the Subsidiary
 Profit & Loss history
 Forecast results for the year

3. 3
Subsidiary’s profile at acquisition date
EUR mln Gross written
premiums
Total assets Net assets Net profits
2004 4.0 5.2 3.3 0.1
2005 7.4 8.9 5.4 0.1
2006 10.8 12.3 5.6 0.3
Shareholding as at
31.12.2006
N° shares Nominal
value EUR
%
Mel Finance EAD 10,109,950 5.2 99.9995%
Fintex EOOD 50 0.0 0.0005%
Total 10,110,000 5.2 100.0000%
On 31st
July 2007 FATA Assicurazioni Danni S.p.A. acquired a
majority interest in Victoria (67%) at a cost of € 10.5 mln.
Shareholding following the
acquisition 31.12.2007
N° shares Nominal
value EUR
%
FATA Assicurazioni Danni S.p.A. 6,773,700 3.5 67.0000%
Mel Finance EAD 3,336,250 1.7 32.9995%
Fintex EOOD 50 0.0 0.0005%
Total 10,110,000 5.2 100.0000%
History
Established in 1996 under the name Mel Ins., it changed its
name to Victoria AD in 2002 and modified its management.
The majority shareholder was the well known Bulgarian
entrepreneur, Mr. Tsvetan Vassilev.
Activities
Authorised to sell non-life insurance (not authorised to carry
out reinsurance activities).
Placed 12th
out of 22 companies operating in the non-life
sector in Bulgaria;
2% market share;
MTPL (36.9%), Kasko (31.2%) and Non-Motor Insurance
(31.9%).
Sales network
63 point of sales with employees and 5 exclusive agencies.
Governance
Dual System: administration and control carried out
respectively by a managing board and a supervisory board.
Headquarters
Sofia, Bulgaria.

4. 4
Results achieved between 2007 and 30.06.2012
 The Bulgarian non-life insurance market has had a CAGR of 1.4% between 2007 and 2011.
 Victoria has witnessed an average growth in gross written premiums of 15.8% reaching 10th
place in the
rankings of Bulgarian insurance companies operating in the non-life sector.
 Net Combined Ratio: affected in the first three years by the realignment to the Group’s accounting principles,
as well as reinforcing technical reserves as requested by the local supervisory authority to the entire market.
 2010-2011:
 Portfolio Restructuring;
 Modifications to tariffs aimed at achieving better technical yields for Motor insurance;
 Increased underwriting in historically more profitable non-life lines of business.
 As at 30th June 2012 Victoria showed performance indicators better than the reference market:
 Net Combined Ratio (91.8% Victoria vs market’s 97.9%),
 Net Loss Ratio (49.6% Victoria vs market’s 53.3%),
 Net Expense Ratio (42.2% Victoria vs market’s 44.7%).
Market Share
Ranking in Bulgarian
Non-Life Market
Net Combined Ratio
Net Assets
EUR million
Net Profits
EUR million
2007 2.4% 12° 100.7% 5.9 0.4
2008 2.9% 12° 104.2% 5.9 0.0
2009 3.4% 12° 113.6% 4.4 -1.6
2010 3.7% 11° 106.0% 4.5 0.1
2011 4.0% 10° 102.3% 6.1 0.6
6M 2012 4.9% 9° 91.8% 10.1 1.9

5. 5
Source: FSC
EUR million
The first 11 non-life insurance companies: gross underwritten premiums as 30.06.2012
2,1%
9.7%
-11.1%
0.0%
-41.9%
12.5%
8.1%
16.5%
55.9% -7.7%
37.6%
LEV INS BULSTRAD ARMEEC
DZI -
General
insurance
Allianz
Bulgaria
BUL INS
UNIQA
Insurance
Euroins VICTORIA
OZK
Insurance
Generali
Insurance
6M 2011 32,9 43,3 38,6 43,6 34,8 41,4 18,5 17,4 13,9 7,8 12,7
6M 2012 45,3 44,2 42,4 38,7 34,8 24,1 20,8 18,8 16,2 12,2 11,7
0
5
10
15
20
25
30
35
40
45
50

6. 6
 MTPL: Applied strategy of pruning the non-profitable portion
of the portfolio, contrary to competitive market trends
witnessed. Introduction of a new underwriting strategy and
personalised tariffs, highly innovative for the sector, aimed at
improving the portfolio’s risk profile;
 Motor Hull: work to improve the portfolio, recovering
adequate technical yields following more stringent underwriting
policies;
 Non-Motor: appreciable increases in underwriting corporate
risks.
Gross written premiums from 2007 to 30.06.2012
EUR mln 2007 2008 2009 2010 2011 6M11 6M12
MTPL 7.0 8.7 7.5 6.4 7.4 3.0 3.5
Motor Hull 4.8 8.2 8.6 6.7 6.0 2.9 3.6
Non-Motor 3.5 5.0 6.9 11.5 14.3 8.1 9.2
TOTAL 15.4 22.0 23.0 24.6 27.7 13.9 16.2

7. 7
Portfolio structure from 2007 to 2011
 Victoria had a strong presence of
MTPL as opposed to other more
profitable Non-Motor lines in 2007.
 Victoria was able to increase its
Non-Motor lines whilst restructuring
its MTPL in 2011.
 Specifically it was focused on:
 Obtaining significant corporate
contracts in Non-Motor lines;
 Ceding non-profitable brokering
contracts with intermediaries;
 Redefining contractual agreements
with main official importers of cars;
 Adopting stringent underwriting
strategies.
Victoria Market

8. 8
Sales network and number of employees
 Gradual transition from a sales network made up of
employees, to an alternative one based on exclusive
agents paid on commission.
 Improved efficiency of processes and rationalisation
of resources.
N° Point of Sales 2007 2008 2009 2010 2011
N° Agencies with employees 68 71 69 65 62
N° Exclusive agencies 7 8 6 17 40

9. 9
Premiums per sales line from 2007 to 2011
Almost 50% of premium volumes in agencies
were preformed WITHOUT intermediaries in
2011.
This was possible thanks to the introduction of
an incentive plan that brought about € 1.1
million in cost savings in 2011.
Headquarters 1.2 2.0 4.3 7.5 9.3
Agencies with employees 11.5 15.6 13.3 11.8 12.7
Exclusive agents - - - 0.3 0.5
Brokers 2.6 4.4 5.3 4.9 5.3
TOTAL 15.4 22.0 23.0 24.6 27.7
2011Sales channels 2007 2008 2009 2010

10. 10
Net technical indicators from 2007 to 30 June 2012
An improved Net Combined Ratio following the
rigorous control on operational costs and the
increase of direct sales channels.
Curbing the Net Loss Ratio’s level thanks to the
stringent underwriting strategies and prudential
reserve strategies.
Improved Net Expense Ratio mainly due to
incentivising the direct sales network.

11. 11
Net loss ratios from 2007 to 30 June 2012
MTPL:
prudential reinforcing of reserves as imposed by the local
supervisory authority for all insurance companies and in line with
group guidelines;
Improved frequency, levering on tariffs, whilst having increased
average costs on late claims with bodyinjuries.
Motor Hull: diminishing frequency and average costs thanks to
decisive actions regarding underwriting and claims settlement.
Non-Motor: increased severely bad weather has affected the
technical trends for Fire and Agricultural Risks.

12. 12
Investments from 2008 to 2011
 Total investments have increased from € 14.6 to €
28.9 million.
 The composition of the investment portfolio
shows a strong tendency towards bank deposits.
 With respect to the Group’s de-risking strategy
 fixed yield bonds have been increased;
 derivatives and shares have been reduced.
 Over the years, the company’s portfolio’s risk
profile has improved: more government and
sovereign bonds with fewer corporate ones.
 Shares traceable to the minority shareholder
represent 10% of the gross technical reserves, in
line with ongoing agreements concerning asset
management.
 Average yields on investments are stable and
amount to approximately 6.1%. A major
component of this are the annual yields on bank
deposits at the Corporate Commercial Bank (8.5%).

13. 13
FATA Assicurazioni Danni’s capital invested in Victoria AD
In order to continue supporting the development of the company, additional
capital investments were made in 2010 and 2012 for a total sum of
approximately € 1.9 million.
EUR mln 2007 2008 2009 2010 2011 6M 2012
Booked value 11.2 11.2 11.2 11.9 11.9 13.1

14. 14
Profit & Loss history from 2007 to 30 June 2012
Technical Account 2007 2008 2009 2010 2011 6M 2012
Gross Written Premiums 15.4 22.0 23.0 24.6 27.7 16.2
Gross Earned Premiums 13.8 20.6 22.0 21.4 24.6 15.1
Gross Total Claims Incurred -5.7 -11.3 -13.3 -12.4 -13.6 -6.7
Acquisition costs -2.9 -3.9 -4.3 -4.9 -5,0 -3.1
Administration costs -4.6 -5.6 -5.3 -5,0 -5.3 -2.9
Operating Expenses -7.5 -9.4 -9.6 -9.9 -10.3 -5.9
OPERATING RESULTS, GROSS OF REINSURANCE 0.6 -0.2 -0.8 -0.9 0.7 2.4
TECHNICAL REINSURANCE RESULTS -0.7 -0.6 -1.8 -0.2 -1.2 -1.3
OPERATING RESULT, NET OF REINSURANCE -0.1 -0.8 -2.6 -1.1 -0.5 1.0
Non- Technical Account
NON-OPERATING INCOME FROM INVESTMENTS 0.5 0.8 1.1 1.2 1.0 1.0
EARNINGS BEFORE TAXES 0.4 0.0 -1.6 0.1 0.5 2.1
Income taxes 0,0 0.0 0.0 0.0 0.0 -0.2
EARNINGS AFTER TAXES 0.4 0.0 -1.6 0.1 0.6 1.9

15. 15
Forecast results for the year
 Assuming that the P&L Account may still be affected by the Global Financial
Crisis, excluding any unpredictable extraordinary factors, the company
estimates to close the year with profits over € 2 million.

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confidential and personal, and shall not be
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