Slide 1

Knowledge sharing inAgeas Istanbul , 3 October 2013

Introduction to the world of ageas

To

Ageass Managers Forum

byFrank Vandenborre Investor Relations16 June 2011 1Good afternoon Ladies and GentlemenThe presentation I will be giving you today will mainly explain the core topics of Investor Relations. As being responsible for the Investor Relations at Ageas myself, Im supposed to know everything about the area.Ageas: an international insurance Group in Europe and Asia Press Conference 27/09/2013Bel 20 quoted company

Top 20 insurer in Europe

History of more than 180 years

Gross inflow 2012 over EUR 21 billion (Ageass part EUR 11 billion)

Over 13,000 employees worldwide and another 15,000 in non-consolidated JVs

Shareholders equity end 2012 at EUR 9.9 billionItalyBelgiumLuxembourgTurkeyChinaIndiaMalaysiaHong KongThailand3

We are active under many local brands with solid market positionsBelgiumItalyUKPortugalMalaysia

China# 7 in Life2nd largest foreign investor

IndiaBelgium# 1 in Life# 2 in Non-LifeUnited Kingdom# 4 in # of cars insured# 4 Personal lines intermediaryPortugal# 1 in LifeItalyMalaysia# 2 overallMarket leader in new business, Takaful & Non-Life Thailand# 3 in Life, # 5 in Non-Life

Turkey# 4 Non-Life

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PartnersDistribution companiesBRU_34Company profileA solid mid-sized international insurance group based in Europe CompanyInflows FY121315161417181212345678910111920Source: Company Data AgeasEUR bnBRU_45Vision 2015 Our project to reshape Ageas started in 2009In 2012, the work is not finished but foundations are strong to unlock the full potential of Ageas by 2015Clear strategic choicesIncrease relative proportion of capital invested in high growth markets Diversification in our product & distribution mix

People make the difference Organization built on local empowerment & knowledge transfer

Ageas vision towards 2015

6Ageas vision towards 2015Five strategic choicesTo have a diversified product offering

To capture growth in mature and emerging markets in Europe and AsiaTo commit to our partners and their customers To be where our customers want us to be To focus on our insurance capabilities

7Ageass financial targets set for 2015 Press Conference 27/09/2013

Half Year 2013 at 67/33

Half Year 2013 at 97.8%

Half Year 2013 at 8.4%

Half Year 2013 at 14.8%

Ageas vision towards 2015 Six important values

9Knowledge sharing within Ageas 10Part of our strategy, targets and valuesConcept of partnerships deeply embedded in DNApartners provide distribution capabilities and local knowledge, in return Ageas brings insurance knowledge, products and expertise via its people

Part of our governanceAgeas retains a significant influence in the management and governance of partnerships and it promotes extensive knowledge transfer between partnerships across all 12 markets (adequate committees, promotion of international mobility and expat missions)

Critical succes factors to make it happen 11Ageas organisation is geared to facilitate & accelerate knowledge transfer to develop the full potential of its entities Strategy and business development at corporate level and in the business segments Focus is on in depth exchange between specialists and on dedicated areasMarketing & distribution; products; risk & support; IT & Ops

Different ways leading to knowledge sharing 12 Collaborate throughout communities gathering experts (eg claims community, HR community)Share knowledge in workshops /conferences on specific topics (telematics, pricing)Transfer expertise trough expat missions (long and short term) (Project management) support in the local business in a specific area (health

Knowledge sharing in practice13Life Product Development BluFamily XL & BluCasa Ageing Population Conference Regional Rollout Over 50s Product - DRTV Campaign at MTL Telematics seminar Agency Channel Transformation Bancassurance Channel Pricing Programme Agency Transformation at Etiqa Agency Orphan Policy Programme at Tai Ping Life Bancassurance optimization at MTL SENLI Toolkit

Preparation Motor de-tariffcation Etiqa Towards a value adding partnership in Investment Management Actuarial and Pricing Support Marketing & DistributionRisk & SupportProductsWorkload Management Aksigorta P&C Target Operating Model in Italy Core General System implementation in Malaysia Claims Community LEAN Toolkit

IT & Operations IT & OPS : Claims community

The challenge CEDifferent claims improvement initiatives in Opcos but no global approach nor structured sharingContacts and sharing on ad hoc basisThe Master of Claims transformation program at Aksigorta created the need for structural exchange and showed improvement areas when aiming for excellence in claims management 14IT & OPS : Claims community

The solutionDifferent dynamicsGeneric workshop Targeted workshops Bilateral & virtual discussions Targeted initiativesAll Ageas Non-Life companies connected : PEOPLE ARE CONNECTED CEActions: a lot of actions taken and planned by the operating entities with the Claims Community as catalyserEnriching local initiatives, eg:Transferring the funnel approach on Fraud detection from ITALY to AksigortaEmpowering Aksigorta in streamlining the repair shop network based on UK experienceTriggering new actions, eg:Following the Fraud workshop, ITALY decided to expand the fraud detection programme to other LoBITALY will copy the CFR tool from Mbcp Ageas / PORTUGALOPS & IT : Claims community

The results : Measuring the local iniatives.KPIs and achievements

Fraud: increased detection levelsAks: over 3M TL (6.5 months)UBIA: over 1M (1,5 year)

Network managementAks: from 1600 to 1000 repair shopsMbcpA: Increased usage of preferred network from 31.6% in 2011 to 38.3% in Nov 2012

Claims segmentationAks: Introduction of once and done MOD claims; outsourcing small fire claims (expected gain of 120K TL)UBIA: Dedicated management of simple MTPL claims within Convention, 80% of volume)

Cost containment Aks: average claims cost for MOD stable UBIA: call center cost reduction (minus 500K in 2 years)Process improvements

Fraud Detection Implementation of a fraud detection process in the claims handling areas of all CE opcos encompassing different lines of business

Closed File ReviewImplementation of regular processes of Closed File Review Improvement of the current processes (new tools, better reporting, new methods, etc.)

Streamlining claims organizationCreating critical mass by centralizing units Redesign role of call center in all OpcosEvolution towards paperless environment

CE16PRODUCTS : Telematics seminar

The challengeWithin the Ageas Leadership Programme (TALENT DEVELOPMENT PROGRAM) a study was dedicated to Telematics which was the basis for setting up an Ageas seminar on this topic. The seminar was co-organised by Ageas UK and CE : representatives from Ageas in Belgium,Italy, Portugal, Hong Kong and the UK. Several external speakers UK CE17PRODUCTS : Telematics seminar

The solutionAll Ageas representatives at the workshop explained the assessments they had made of the telematics opportunity in their local markets: AGEAS UK and their partners explained The telematics proposition The deployment of the technology into customer vehiclesThe Data usage to manage the claim experience.ITALY : explained how they were addressing the new obligation on Italian insurers to provide a telematics based insurance product.External providers of telematics solutions shared some insight on the different possible approaches and services for launching a telematics solution (blackbox types, data ownership,...).Other Ageas representatives explained their analyses of the telematics opportunities. Generally they had concluded (for the moment) that their markets low average premiums (even for younger drivers) did not support the relatively high cost of telematics devices and installation. UK CEPRODUCTS : Telematics seminar

The resultsUK will launch the Telematics product for 1 of its retail brands.

UKs experience enriched especially Italy which is obliged to launch a new motor product based on Telematics. UK -> Italy

The seminar contributed to enlighten other ways of usage of Telematics devices

UK CE19Marketing and Distribution : Bancassurance Channel

The challenge (2011) CETurkeyUntapped bancassurance potential / Aksigorta lagging behindShareholders (Ageas & Sabanci) strongly supportive to focus on bancassuranceIncrease the effectiveness of the organization => need to work on all aspects of value chain (from products, over operations to sales)20Marketing and Distribution : Bancassurance Channel

The solutionWorkgroup with specialists on Bancassurance of Italy, Belgium, Portugal was put in place.Discovery & clarification Design & master planCombined with Akbanks request -> Next transformation programme"Next" project & roadmapBoost multichannel capabilities in BC innovated channel useOptimise product factory simplify product catalogueOptimise & centralise Back Office increase renewal and keep collection rateAlign target & performance management optimise budget cycle and commercial reportingRestructure joint Corporate Governance set up aligned marketing committees

CETurkeyMarketing and Distribution : Bancassurance Channel

The resultsKPIs and achievements

GWP growth+36%15% of Aksigorta GWP, coming from 12.8%

Increased renewal ratioFrom 55% (2011), over 60% (2012)

Loss ratioImproves by 2.3%

ProfitsPositive evolution net underwriting result : +41%

Process improvements

Sales Support Team in placeClear roles & responsibilitiesMonitoring in place

Product mix implementation plan completedWith reduction of number of products, regrouped in 5 product groups & first steps towards family packageQuick wins on product mix f.i. Launch of wings travel health

Process redesign for collection and Renewals

Alternative Channels are developped

Governance with different committees is in place. CETurkeyQ3 2012 numbers22RISK and SUPPORT : Actuarial and Pricing Support

The challenge UK / CEDifferent needs on pricing improvements in the countries. Local iniatives without overview on global knowledge/ experience.Different levels of need : need for customizingLead to Series of visits to Turkey, Portugal and Brussels arranged to support local pricing initiatives and share experience.23RISK and SUPPORT : Actuarial and Pricing Support

The solutionTurkey : UK specialists and AGEAS CE team visited Turkey to give assistance in the implementation of a new pricing Tariff based on a recent Emblem exercise. The areas covered were:Review and advise to improve ModelsMonitoring techniquesPremium structure and underwriting rules

Portugal : UK specialist visited Portugal. More general approach as in terms of the expertise this company was behind Turkey in its modelling experience. Support on modelling techniques, model building Support in understanding the impact and ensuring a simple but effective initial model to go to the market.

BrusselsUK has been asked to present to a marketing team in Brussels on how to use External data to add value. 1 day workshop to exchange the best practices.. UK/ CERISK and SUPPORT : Actuarial and Pricing Support

The resultsIn Turkey, specific areas picked up in more detail by the local team were as follows:Reviewing emblem MOD models

Studying impact analysis & elasticity assumptions

Setting alternatives for implementation

Evaluating monitoring performance indicators after implementation

Scheduling the implementation process

In Portugal : In depth analysis of the AGEAS CE Team is ongoing. UK/CE25Conclusion26Effective Knowledge sharing is key to remain attractive for our partners and their clients

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