onstrategy value management

INSURANCE INDUSTRY Posioning and Reputaon

June, 2017 onstrategy 1 onstrategy ON STRATEGY is a muldisciplinary consulng firm focused on the creaon and opmizaon of the financial value of their customers and partners, and it is enrely focused on quanfying and maximizing the value of tangible and intangible assets as a result of robust and internaonally recognized methodologies which are supported by a deep understanding of the economic, polical and social environment, and in parcular the various industries that make up the business environment.

ON STRATEGY was founded in 2009, and it aims to create and manage value for its customers, acng in Portugal, Spain, United Kingdom and PALOP countries, developing partnerships with global instuons, leaders, independent, cerfied and disciplines excellence experts. www.onstrategy.com.pt

Our Partners:

onstrategy 2 We provide consulng services through independent and cerfied tools, analyzing and evaluang the strategies defined, the management decisions and the financial impact of the same on the brands and on the business performance.

• Brand Due Diligence • Business Valuaon • Talent Strength, Leadership and Sustainability • Brand Porolio Analysis • Brand Valuaon • Talent Strength vs Brand Strength • Brand Extension Evaluaon • Business and Brand Value Analysis • Leadership and Vision • Brand Migraon • Intangible Asset Valuaon • Governance and Ethics • Brand Identy Analysis • Fair Value Exercise • Cizenship and Social Responsibility • Brand Architecture Analysis • Intangible Asset Impairment Reviews • Appraisal and Bonus Sengs • Brand Strength Analysis • Patent Valuaon • Coaching and Mentoring • Brand Posioning Analysis • Asset Transfer Valuaon • Communicaon and Negoaon • Brand Equity Analysis • Royalty Rang Seng • Culture Alignment • Brand Innovaon and Differenaon Analysis • Transfer Analysis • Workplace Wellbeing • Brand Reputaon and Risk Analysis • Price Posioning Analysis • Brand Performance Analyisis • Profit and Loss Analysis • Brand Sustainability Analysis • Return on Investment • Touchpoints Analysis • Budget Seng • Sponsorship Analysis • Franchising and Licensing • Analysis • BrandCo and IPCo Strategy • Customer Experience Analysis • Scenario Modelling and Planning • Percepon Mapping • KPIs Management and Target-seng • Competor Benchmarking • Value Creaon • onstrategy 3 OTHER ENTERPRISES We have created and developed 3 stakehoders 1% 14% panels, with whom we are 365 days a year online to discuss issues relang to over 28 sectors of naonal economic acvity where we discuss subjects and do studies that support the leaders decision making in order to build +40.000 trust, preference, purchase and DATA BASE recommendaon of the same... CONTACTS

85% CITIZENS

GENERIC PUBLIC ENTERPRISES OTHERS +35.020 cizens +5.870 board +40 journalists members (large, +20 Opinion Leaders medium, small and +25 Analysts micro companies) +25 University Prof onstrategy 4 The Reputation Economy Reputation Management is a discipline

In a world characterized by the stress of everyday life, the speed with which everything happens, the permanent change in habits and atudes, the compeveness of financial and human resources, instability and uncertainty, the constant demand for success...

... many of the largest global organizaons do not meet in full the objecves set annually, because they do not map and manage in an integrated way their human, physical, intellectual and financial resources, and because they do not map and manage in an integrated manner its stakeholders to potenate trust, preference, purchase and recommendaon of the same. onstrategy 5 The Reputation Economy Reputation Management is a discipline

Reputaon is known as the set of emoonal and raonal percepons that the different stakeholders have about people, organizaons or places, and that according to them they develop atudes and behaviors.

Reputaon is the percepon that different stakeholders have on past and present acons which influence future expectaons.

For stakehoders their percepon is their reality... onstrategy 6 The Reputation Economy Reputation Management is a discipline

How much is it worth?

onstrategy 7 The Reputation Economy Reputation Management is a discipline

And this? insurance BRAND

onstrategy 8 The Reputation Economy Reputation Management is a discipline

insurance The brand maers, but BRAND today it’s not enough...

Brand Reputaon drives behavior.

onstrategy 9 The Reputation Economy Reputation Management is a discipline

insurance PRICE, BRAND is what you pay...

VALUE, is what you perceive you get.

onstrategy 10 The Reputation Economy Reputation Management is a discipline

Brand Brand Brand Stakeholders Positioning Portfolio & & Reputation Architecture

Stakeholders Brand Brand Equity & Behavior Touchpoints Strength & Risk Drivers

Business Brand Enterprise Economic Value Economic Value Economic Value

onstrategy 11 The Reputation Economy Reputation Management is a discipline

INSURANCE Brand Enterprise INDUSTRY Economic Value 28% Economic Value

onstrategy 12 The Reputation Economy Reputation Management is a discipline Brand Strength

Brand Brand Brand Equity Positioning & Reputation Business Performance

Admiration Trust Preference Market Share Legal Protection Recommendation Communication Share Awareness Products & Services Touchpoints Efficiency Relevance Innovation & Differentiation Numeric Advantage Workplace & Wellbeing Weighted Distribution Loyalty & Bonding Social Responsibility Volume / Value Growth Governance & Ethics Leadership & Vision Finance Profit & Loss

Trust / Buy / Defend / Recommend / Invest / Work onstrategy 13 The Reputation Economy Reputation Management is a discipline REPUTATION SUPPORTIVE BEHAVIOR 0-39 40-59 60-69 70-79 80-100

TRUST 9% 16% 35% 55% 84%

BUY PRODUCTS AND SERVICES 8% 14% 31% 51% 83%

PREFERENCE 8% 13% 30% 50% 83%

RECOMMEND 7% 13% 30% 50% 82%

SAY SOMETHING POSITIVE 8% 12% 27% 44% 77%

WORK FOR/WITH 10% 17% 31% 47% 73%

INVEST IN 7% 11% 24% 39% 67% onstrategy 14 The Reputation Economy Mapping out the Reputation journey Reputaon impacts Brand Strength, Brand Value and Enterprise Value

onstrategy 15 The Reputation Economy Mapping out the Reputation journey Reputaon impacts Brand Strength, Brand Value and Enterprise Value

onstrategy 16 The Reputation Economy Reputation Management is a discipline

Reputaon and Risk affects a wide range of stakeholders

Customer Staff

Directors Brand Perceptions affect Brand Perceptions affect Potential Middle • Price Customers Managers • Recruitment • Volume • Retention • Repeat • Recommendation • Share of wallet Existing All Other • Morale • Cross sell Customers Employees • Staff costs

Influencers Production e.g. Media Brand External Audiences Financial Audiences

Brand Perceptions affect Brand Perceptions affect Trade • Distribution terms Sales • Interest spread Channels • Channel access • Share price • Strategic alliances • Debt/ Equity ratio • Deal completion Strategic • Risk appetite Debt Allies & • Licensing providers • Cost of borrowing Suppliers • CSR Investors

onstrategy 17 The Reputation Economy The Insurance Industry – Stakeholders Weight

CUSTOMERS & CONSUMERS 20% BROKERS & AGENTS 20% EMPLOYEES 15%

MEDIA & JOURNALISTS 15% COMPETITORS 10%

SUPPLIERS 10% ANALYSTS & OPINION LEADERS 5% AUTHORITIES & REGULATORS 5%

onstrategy 18 POSITIONING Based on 4 dimensions (belonging and acceptance, stability and security, recognion and influence, risk and ) to map and idenfy differences in how different stakeholders see and would like to see the brand with which they interact.

onstrategy 19 ARCHETYPAL POSITIONING The Insurance Industry Aspirational Brand - Dimensions and Attributes

Lealdade, Apoio, Protecção Poder, Dependência Autoridade Atencioso

Pureza, Renovação Verdade, Sabedoria

Estabilidade Segurança Mago Divertimento, Aceitação POSICIONAMENTO Independência Transformação, Espontaneidade Pertença PERSONALIDADE Reconhecimento Visão Bon-Vivant Bon-Vivant

Risco Vitalidade

Atracção, Descoberta, Sensualidade Aventura

Coragem, Rebelde Inovação, Determinação Criatividade Não convencional, Rebeldia onstrategy 20 ARCHETYPAL POSITIONING MOST ASPIRATIONAL The Insurance Industry Aspirational Brand - Dimensions and Attributes POSITIONING

ATENCIOSO DIRIGENTE MESTRE CRIADOR

Protecção Poder Verdade Criavidade Segurança Estabilidade Respeito Imaginação Estabilidade Controlo Sabedoria Paixão Genuidade Orgulho Confiança Invenção Integridade Ordem Competência Inspiração Honesdade Respeito Inteligência Inovação Lealdade Segurança Liderança Experiência Confiança Organização Visão Modernidade Conforto Protecção Excelência Dinamismo Social Autoridade Objecvidade Empreendimento Coragem Racionalidade Solidez Éca Reconhecimento

onstrategy 21 REPUTATION Reputaon management plays with qualitave and quantave data to support emoonal and raonal dimensions and aributes indicators.

STAKEHOLDERSSTAKEHOLDERS EMOTIONAL PERCEPTIONSEMOTIONAL PERCEPTIONS RATIONAL PERCEPTIONSRATIONAL PERCEPTIONS

CONSUMERSCONSUMERS ADMIRE CUSTOMERSCUSTOMERS PRODUCTS & SERVICESPRODUCTS & SERVICESDIFFERENTIATION INNOVATION & SUPPLIERSSUPPLIERS ADMIREADMIRE EMPLOYEESEMPLOYEES INNOVATION & DIFFERENTIATIONINNOVATION & DIFFERENTIATION

MEDIAMEDIA TRUST COMPETITORSCOMPETITORS TRUSTTRUSTVISION REPUTATION WORKPLACE & WELLBEINGWORKPLACE & WELLBEING OPINION LEADERSOPINION LEADERS LEADERSHIP & SCORE OPINION MAKERSOPINION MAKERS CITIZENSHIP & SOCIAL RESPONSIBILITYCITIZENSHIP & SOCIAL RESPONSIBILITY RECOMMEND SHAREHOLDERSSHAREHOLDERS PREFERPREFER BEHAVIOR INVESTORSINVESTORS BUSINESS & FINANCIAL PERFORMANCEBUSINESS & FINANCIAL PERFORMANCE BEHAVIOR SINDICATESSINDICATES PREFER ASSOCIATIONSASSOCIATIONS RECOMMENDRECOMMEND GOVERNANCE & ETHICSGOVERNANCE & ETHICS REGULATORSREGULATORS POLITICAL AUTHORITIESPOLITICAL AUTHORITIES CITIZENSHIP & SOCIAL LEADERSHIP & VISIONLEADERSHIP & VISION RESPONSIBILITY ECONOMICAL AUTHORITIESECONOMICAL AUTHORITIES

onstrategy 22 REPUTATION DRIVERS The Insurance Industry - Dimensions and Attributes

GENERIC ENTERPRIS BROKERS ANALYSTS SUPPLIERS MEDIA PUBLIC ES AGENTS OPLEADERS

REPUTATION RATIONAL SCORE WEIGHT WEIGHT WEIGHT WEIGHT WEIGHT WEIGHT

High quality products High quality services PRODUCTS & SERVICES Value for money 24% 24% 21% 19% 17% 14% Meets customer needs

Innovative products INNOVATION & Innovative services DIFFERENTIATION First to market 21% 18% 16% 17% 15% 10% Adapts quickly to change

Cares about employees WORKPLACE & Rewards employees fairly WELLBEING Employee wellbeing 8% 8% 7% 8% 11% 6% REPUTATION EMOTIONAL SCORE Offers equal opportunities

ADMIRE Cares about citizens TRUST ATTRIBUTES CITIZENSHIP & SOCIAL Supports good causes PREFER RESPONSIBILITY Environmentally responsible 17% 10% 8% 11% 15% 9% RECOMMEND Positive influence on society

Open and transparent Behaves ethically GOVERNANCE & ETHICS Fair business conduct 14% 14% 15% 15% 14% 21% Meet regulatory requirements

Industry leader Well organized LEADERSHIP & VISION Excellent management 10% 14% 16% 14% 14% 21% Clear vision for its future

Profitable BUSINESS & FINANCIAL Secure and sustainable PERFORMANCE Better results than expected 6% 12% 17% 16% 14% 19% Strong growth prospects

onstrategy 23 IMPACT According to the different stakeholders percepons about the brands with regard to their posioning and reputaon, we idenfy their support behavior.

Support Behavior TRUST POSITIONING PREFERENCE PURCHASE RECOMMENDATION SAY SOMETHING POSITIVE WORK FOR / WITH REPUTATION INVEST

onstrategy 24 TOUCHPOINTS ACTIVATION The Insurance Industry

Idenfy the most efficient touchpoints in each industry to generate and / or build posioning, reputaon, trust, preference, purchase and recommendaon in their brands. 4,5 > EXCELLENT

3,5 > STRONG / ROBUST

2,5 > MODERATE

1,5 > VULNERABLE / WEAK

TOUCHPOINT POSITIONING REPUTATION IMPACT SCORE 1,5 < POOR

OFFICES / SHOPS / POINT OF SALE 4,6 4,6 4,5 4,6

DIGITAL INTERNET / SOCIAL MEDIA 4,6 4,5 4,4 4,5

EMPLOYEE AMBASSADOR PROMOTER 4,5 4,5 4,4 4,5

SPONSORSHIP MUSIC 4,3 4,2 4,2 4,2

SPONSORSHIP SPORTS 4,3 4,2 4,1 4,2

PROPRIETARY EVENTS 4,1 4,1 3,8 4,0

TV 4,0 3,8 3,7 3,8

TV MAINTHRUST 4,0 3,8 3,5 3,8

PROMOTIONS 3,6 3,4 3,8 3,6

SPONSORSHIP PUBLIC SPOTS 3,7 3,6 3,3 3,5

SPONSORSHIP EDUCATION 3,6 3,5 3,3 3,5

SPONSORSHIP CONFERENCES 3,5 3,5 3,3 3,4

MERCHANDISING / GIFTS 3,4 3,4 3,4 3,4 onstrategy 25 REPUTATION & RISK VALUE The Insurance Industry

Brand Strength 65 GROSS SALES IMPACT ENTERPRISE VALUE IMPACT # Ações 300 000 000 REPUTATION VALUE 684 706 000 € REPUTATION VALUE 1 728 333 024 € Valor Bolsa (30/12/2016) 8,36 € RISK VALUE 231 691 215 € RISK VALUE 578 803 453 € Enterprise Value 2 508 000 000 € Gross Sales 1 000 000 000 €

REPUTATION & RISK VALUE CUSTOMERS 20% BROKERS AGENTS 20% MEDIA 15% OTHERS 45% INVESTOR ANALYST 100%

REP VAL RISK VAL REP VAL RISK VAL REP VAL RISK VAL REP VAL RISK VAL REP VAL RISK VAL (Gross Sales Base) (Gross Sales Base) (Gross Sales Base) (Gross Sales Base) (Enterprise Value Base)

Dimension Weight 22% 21% 19% 19% 17% PRODUCTS & SERVICES Dimension RepScore 60,2 26 488 000 € 9 535 680 € 67,5 28 350 000 € 10 489 500 € 65,3 18 610 500 € 6 885 885 € 69,3 59 251 500 € 20 145 510 € 67,1 285 917 016 € 105 789 296 € Dimension Brand Strength 64,0 63,0 63,0 66,0 63,0

Dimension Weight 21% 18% 17% 17% 15% INNOVATION & Dimension RepScore 64,8 27 216 000 € 8 709 120 € 64,8 23 328 000 € 8 864 640 € 67,5 17 212 500 € 6 196 500 € 69,8 53 397 000 € 18 154 980 € 65,3 245 809 080 € 92 424 214 € DIFFERENTIATION Dimension Brand Strength 68,0 62,0 64,0 66,0 62,4

Dimension Weight 8% 8% 8% 8% 8% WORKPLACE & Dimension RepScore 59,4 9 504 000 € 4 086 720 € 66,8 10 688 000 € 4 275 200 € 63,6 7 632 000 € 3 358 080 € 67,2 24 192 000 € 10 160 640 € 66,2 132 743 424 € 54 159 317 € WELLBEING Dimension Brand Strength 57,0 60,0 56,0 58,0 59,2

Dimension Weight 15% 8% 13% 11% 8% CITIZENSHIP & SOCIAL Dimension RepScore 57,2 17 160 000 € 7 550 400 € 59,8 9 568 000 € 3 827 200 € 64,2 12 519 000 € 4 757 220 € 70,2 34 749 000 € 14 594 580 € 60,7 121 748 352 € 48 212 347 € RESPONSIBILITY Dimension Brand Strength 56,0 60,0 62,0 58,0 60,4

Dimension Weight 14% 16% 15% 15% 17% GOVERNANCE & ETHICS Dimension RepScore 65,5 18 340 000 € 5 135 200 € 71,0 22 720 000 € 5 907 200 € 73,0 16 425 000 € 4 106 250 € 69,3 46 777 500 € 15 904 350 € 71,4 304 421 040 € 78 540 628 € Dimension Brand Strength 72,0 74,0 75,0 66,0 74,2

Dimension Weight 10% 15% 14% 14% 17% LEADERSHIP & VISION Dimension RepScore 67,0 13 400 000 € 3 886 000 € 71,2 21 360 000 € 6 835 200 € 73,6 15 456 000 € 4 173 120 € 70,8 44 604 000 € 11 597 040 € 71,7 305 614 848 € 94 740 603 € Dimension Brand Strength 71,0 68,0 73,0 74,0 69,0

Dimension Weight 10% 14% 14% 16% 18% BUSINESS & FINANCIAL Dimension RepScore 69,8 13 960 000 € 4 606 800 € 73,0 20 440 000 € 6 540 800 € 75,8 15 918 000 € 4 775 400 € 77,0 55 440 000 € 16 632 000 € 73,6 332 079 264 € 104 937 047 € PERFORMANCE Dimension Brand Strength 67,0 68,0 70,0 70,0 68,4

126 068 000 € 43 509 920 € 136 454 000 € 46 739 740 € 103 773 000 € 34 252 455 € 318 411 000 € 107 189 100 € 1 728 333 024 € 578 803 453 €

onstrategy 26 Thank You

Pedro Tavares, Partner and CEO

onstrategy (Brand Finance | Corporate Excellence) Mail: [email protected] Mobile: +351 91 938 3036

Avenida Engº Duarte Pacheco Amoreiras Torre 2, Piso 9, Sala 8 1070-102 Lisboa, Portugal

onstrategy is a consultancy firm, partner of Brand Finance and Corporate Excellence, helping companies to manage and improve their business and brands results.

www.onstrategy.com.pt onstrategy 27