Achmea Investor Presentation “The leading Dutch insurance company with strong brands, multi-channel distribution strategy, well-diversified product range and conservative investment profile” November 2013 CONTENTS Introduction Achmea overview Strategic agenda Key investment considerations Recent results Wrap-up Appendices 2 Introduction | Achmea Overview ACHMEA OVERVIEW - strong brands, diversified products, focus on insurance • Largest Dutch insurer • A strong and solid insurance group with mutual roots • Market leader in Dutch insurance: Property & Casualty, Income Protection, Health, Pension & Life insurance • Distribution mainly through direct & banking channels and well positioned for future market developments • Strong market position with ‘power brands’ Interpolis, Centraal Beheer Achmea and Zilveren Kruis Achmea • A+ IFSR, A- senior unsecured debt (S&P) Earned premiums by segment in H1 2013 31/12/2012 - Total: € 22.4 billion Turkey 13% 1% 6% Pension & Life Greece 13% 29% Non-life 16% Slovakia Ireland International 22% 66% 5% Russia Health 29% Other 3 Introduction | Achmea Overview COOPERATIVE IDENTITY The strength of our identity and our story We continue to build on our foundation of unity. Insurance stands for solidarity in society. We want our customers to continue to experience that we are a cooperative insurer. 4 Introduction | Achmea Overview ACHMEA HISTORY Focus: Expansion optimization and innovation A group of Dutch mutual Centraal Beheer and Achmea acquires 80% insurers form the Achmea acquires Achmea creates Avéro Insurance merge of Eureko Sigorta; Coöperatieve Vereniging Interamerican Greece InShared to AVCB Achmea and Agis merge Centraal Beheer 1811 1956 1995 1999 2005 2008 2011 1909 1992 2001 2007 2010 Achmea merges with The history of Achmea* Achmea merges with The first Dutch direct Achmea founded out of Interpolis; Rabobank Achmea acquires Oranta begins in Achlum, the DFZ and acquires writer FBTO is founded AVCB and Zilveren Kruis becomes second largest in Russia Netherlands Independer.nl shareholder 2010-2013: Divestment Eureko acquired first operating companies international activities Belgium, France, Poland, Romania Bulgaria * Eureko was the former name of the parent company of Achmea and its European subsidiaries. 5 Introduction | Achmea Overview OWNERSHIP STRUCTURE - stability through two major cooperative shareholders Achmea Rabobank Preference Other shareholders Association Netherlands 5.5% 65.3% 29.2% 100% Ordinary Achmea shares subholding 94.5% 5.5% • The mission of Achmea Association is to support the continuity of Achmea and to look after the collective interests of customers 6 Introduction | Achmea Overview ACHMEA’S STRONG ALLIANCE WITH RABOBANK • Commercial alliance through the banking channel. Approximately 98% of insurance products sold via the Rabobank channel are Achmea insurance products Rabobank customers with Interpolis products • Exclusive distribution of Interpolis products 30/06/2013 Commercial through Rabobank branches • Greenfield operation in Australia in cooperation with Rabobank started in 2013, with a possible extension to other growth markets. Focus is on non-life, mainly agricultural sector such as live stock, machinery, crop insurance etc. 25% • Rabobank has a nomination vote on the supervisory board of Achmea. Furthermore 22% Governance Rabobank and Achmea share two common supervisory board members Private Wholesale • Rabobank has historically supported Capital Achmea with capital, as and when necessary Source: Achmea data June 2013 7 Introduction | Strategic agenda CLEAR LONG-TERM STRATEGIC CHOICES FOR DUTCH PORTFOLIO Channel Banking Direct Broker distribution distribution distribution Brand Product Group Property & Casualty Core proposition: Health strengthen Increase scale to Income Protection core proposition Pension - standardised Develop to core proposition Life - standardised Banking products Complementary to insurance products Pension – not standardised Separate and manage Life – not standardised internally or externally • Our international strategy is based on these strategic choices 8 CONTENTS Introduction Key investment considerations Dominant player in major insurance market Well positioned with strong brands Robust capital and solvency position Conservative investment profile Recent results Wrap-up Appendices 9 Key investment considerations | Dominant player in major insurance market THE NETHERLANDS – major insurance market within Eurozone European Non-life market (incl. health) European Pension and Life assets 31/12/2011 31/12/2011 100 90 billion 80 € In 70 60 50 40 30 20 10 0 DE FR UK NL IT ES CH Growth outlook (% change yoy) Netherlands CDS remains low 6 4 2 0,75 0 (1,25) (2) (4) (6) ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 '13E 14E Source: Bloomberg, Life and Non-life market: Insurance Europe, Pension market: Towers Watson Global Pension Assets Study 2013 10 *Pension market Netherlands per 31-12-2013: DNB Key investment considerations | Dominant player in major insurance market LEADING POSITIONS IN OUR CORE MARKETS Market share per 31-12-2012* Property & Delta SNS #1 a.s.r. Atradius ING Other Casualty Lloyd Reaal Health #1 VGZ CZ Menzis Other Income De Delta #2 a.s.r. ING Aegon Other Protection Goudse Lloyd SNS Delta ING Aegon a.s.r. Other Pensions #4 Reaal Lloyd Delta ING SNS a.s.r. Aegon Other Individual Life #2 Reaal Lloyd *Pensions based on % recurring premiums, all other segments based on % GWP Source: DNB October 2013 (Property & Casualty, Income Protection, Individual life), Achmea (Pensions, Health) 11 CONTENTS Introduction Key investment considerations Dominant player in major insurance market Well positioned with strong brands Robust capital and solvency position Conservative investment profile Recent results Wrap-up Appendices 12 Key investment considerations | Well positioned with strong brands WELL DIVERSIFIED DISTRIBUTION NETWORK OF ACHMEA Non-life • Well diversified distribution 31/12/2011 network consisting of banking, direct and intermediary channel • Share of controlled distribution (direct and banking channel) among product lines is highest in health insurance (~97%) • Banking distribution of insurance products uses Rabobank channel in the Netherlands Health Pension & Life 31/12/2011 31/12/2011 13 Key investment considerations | Well positioned with strong brands AROUND HALF OF ALL DUTCH PEOPLE ARE ACHMEA CUSTOMERS Retail customers Wholesale customers 14 14 Key investment considerations | Well positioned with strong brands BRAND POWER Property & Casualty Health Individual life 130 130 130 120 120 120 Brand loyalty Brand 110 110 110 100 100 100 90 90 90 80 80 80 70 70 70 60 60 60 40 60 80 100 120 140 40 60 80 100 120 140 40 60 80 100 120 140 Brand strength Achmea Competitor Source: Achmea brandpower research, Property & Casualty (July 2013), Health (Dec 2012), Individual Life (Dec 2012) 15 Key investment considerations | Well positioned with strong brands HIGH CUSTOMER SATISFACTION P&C Retail P&C Wholesale Income Protection Centraal Beheer Achmea 7,8 Centraal Beheer Achmea 7,5 Centraal Beheer Achmea 7,2 Aegon 7,8 ABN Amro Interpolis 7,4 7,8 Generali 7,2 Interpolis 7,7 Avéro Achmea 7,3 7,7 FBTO ASR 7,3 De Goudse 7,2 ASR 7,7 Generali 7,7 Generali 7,3 Avéro Achmea 7,1 Delta Lloyd 7,6 Aegon 7,3 SNS Reaal 7,6 De Amersfoortse 7,1 De Goudse 7,2 Avéro Achmea 7,5 Interpolis 7,0 Nationale Nederlanden 7,3 ABN Amro 7,1 Ø 7,7 Ø 7,3 Ø 7,1 Health Individual Life Pensions Pro Life Centraal Beheer Achmea 7,4 8,1 Centraal Beheer Achmea 7,2 7,4 OZF Achmea 7,9 Interpolis Cardiff 7,3 Univé 7,8 Interpolis 7,0 Delta Lloyd 7,3 FBTO 7,7 FBTO 7,3 Delta Lloyd 6,5 Agis 7,6 Generali 7,1 Avéro Achmea 6,4 Avéro Achmea 7,6 Avéro Achmea 6,9 ABN Amro 6,9 De Amersfoortse 7,6 ASR 6,4 Nationale Nederlanden 6,5 Interpolis 7,5 SNS Reaal 6,5 Aegon 6,4 VGZ 7,5 Allianz 6,4 Zilveren Kruis Achmea Generali 6,0 7,4 Aegon 6,2 Ø 7,7 Ø 7,1 Ø 6,5 Source: Verbond van Verzekeraars, Customer Satisfaction Research 2012 16 CONTENTS Introduction Key investment considerations Dominant player in major insurance market Well positioned with strong brands Robust capital and solvency position Conservative investment profile Recent results Wrap-up Appendices 17 Key investment considerations | Robust capital and solvency position HIGH QUALITY OF CAPITAL AND LOW LEVERAGE Composition of equity Debt leverage 30/06/2013 - Total: € 9.8 billion 45% 40% Maximum level 35% 30% 25% 20% 15% 27% 22% 23% 10% 22% 21% 21% 22% 5% 0% Dec 11 Mar 12 Jun 12 Sep 12 dec-12 mrt-13 jun-13 Capital structure Capital allocation 30/06/2013 - Total: € 11.1 billion 30/06/2013 - Total: € 11.1 billion 12% Core capital 13% Hybrid capital Debt 75% 18 Key investment considerations | Robust capital and solvency position SOLID SOLVENCY I POSITION Solvency I 19 Key investment considerations | Robust capital and solvency position STRONG SOLVENCY POSITION COMPARED TO EUROPEAN PEERS Solvency I (IGD) at 30/06/2013 ING EurAsia 257% Achmea excl. Health 234% Aegon (NL) 220% Axa 218% Achmea 204% Delta Lloyd 184% Aviva 180% Allianz 177% SNS Reaal 172% Generali 139% CNP Assurances 116% 0% 50% 100% 150% 200% 250% 300% 20 Key investment considerations | Robust capital and solvency position STRONG SOLVENCY POSITION UNDER ALL REGIMES Solvency I (IGD) Solvency II* (Partial Internal Model) 30/06/2013 - in € billion 31/12/2012 - in € billion 204% 183% Available Surplus Free capital surplus 4.2 3.5 Available 8.2 Capital 4.2 SCR level Required 7.7 2.8 capital MCR level 4.0 • Solvency II framework is still evolving; parameter changes (e.g. interest