CEE | major groups Huge rise in profit

EUREKO ended the first half of 2010 with a good net profit of EUR864m, a significant increase compared to the figure of EUREKO sells EUROCLINIC Hospital and EUR115m for the same period last year. The settlement with the Polish government in respect of insurer Powszechny Zaklad Ubez- EUROCLINIC Medical Centers in pieczen S.A. (PZU S.A.) was a major factor in this increase. Gross EUREKO signed an agreement to sell EUROCLINIC Hospital written premiums increased modestly to EUR10.7 billion (1H/2009: (photo) and EUROCLINIC Medical Centers in Romania to CEN- EUR10.5 billion). TRUL MEDICAL UNIREA (CMU). After the transaction, EUREKO Our cooperative group performed Asigurari health insurance clients will have access to the medi- strongly in the first half of 2010 and our cal facilities of the new group. Closing of the deal is expected financial position improved further. Serv- before year end 2010. Finalization of the transaction is subject ing our customers with good insurance at to approval by the regulatory authorities. a reasonable price is our prime objective. EUROCLINIC has a hospital and three medical centers through That is why efficiency, reducing complex- which it provides medical services. EUROCLINIC has 350 em- ity and enhancing operational excellence ployees and realized just under EUR8m revenue in 2009. will remain a priority, comments Willem van DUIN, Chairman of the Executive Board (photo). By insurance classes, health is a core business for EUREKO. It rep- resents 58% of total EUREKO gross written premiums. Under the umbrella in the Dutch market, EUREKO offers basic and supplementary health insurance. In , Russia, , Ro- mania and , EUREKO offers basic, supplementary and private health insurance. Overall, the gross written premiums from health insurance increased by 7% to EUR6,189m (1H/2009: EUR5,766m). Premiums from policyholders increased 5% to EUR2,955m (1H/2009: EUR2,808m) through growth in number of and higher premiums per policyholder. Contributions from the Dutch State increased by EUR275m to EUR3,234m. EUREKO’s non-life business accounts for 23% of total gross written premiums. EUREKO operate on non-life insurance market in Neth- erlands, Turkey, Greece, Russia, Slovakia, Romania and . In May 2010, EUREKO sold its Cyprus activities via a management buyout. In July 2010, EUREKO announced the sale of AVÉRO Insur- ance Belgium to Swiss insurance company BALOISE for EUR75m. In the first half of 2010, EUREKO achieved total gross written premiums of EUR2,441m (1H/2009: EUR2,368m and, if Cyprus is excluded, EUR2,363m). The growth of 3% is primarily in the Nether- lands, Greece and Turkey. CMU is a top-class Romanian healthcare services provider The GWP on life insurance decreased by 12%, from EUR2,368m which has 18 clinics, an imaging center and in-patient facilities in 1H/2009 to EUR2,083m in 1H/2010 due primarily to increasing for surgery and maternity. Its ambitious development plans competition from banks (fiscally facilitated saving products) and are backed by ADVENT International, one of the world’s larg- in the Group business. Profit before tax in the first half of est private equity groups. 2010 is EUR100m (1H/2009: EUR117m). The value of new business decreased to EUR6m (1H/2009: EUR11m).

About the business with GARANTI New CEO in Russia EUREKO has appointed Reinhard STARY to the position of Gen- eral Director and Chief Executive Officer (CEO) of its operating company ORANTA Insurance in Russia, effective September 1, 2010. STARY has held several senior management positions with ZURICH FINANCIAL SERVICES Group. He was Deputy CEO of ZURICH Insurance in Russia from 2008 to 2009. STARY In Turkey, EUREKO currently has a 15% stake in GARANTI replaces Sergey USTYUKOV, who will remain a member of the Emeklilik, partner GARANTI Bank’s Life and busi- Board of ORANTA and act as an advisor to Reinhard STARY. ness. EUREKO has the option to acquire a further 35% of this Mr. USTYUKOV has greatly contributed to ORANTA’s achieve- business. The option can be exercised from mid-June 2010 ments and success in Russia during the last 15 years and we through mid-June 2012. On the other hand, GARANTI Bank thank him for that, said EUREKO Executive Board member, has a put option on 20% of the shares in EUREKO Sigorta that ­Thomas van RIJCKEVORSEL. To take over this key role for can be exercised from July 2010. To date, no option has been EUREKO, we are pleased to appoint someone with Mr. STARY’s exercised. strong background and track record.

CEE, RUSSIA & CIS Insurance Markets 1H2010