29 September The AgeasApproach – Gary Crist 29/9/11 | 2011 25-9-2011 Ageasin Asia- A INVESTOR DAY Asia: TheAgeas Approach Gary Crist CEO Asia creation decade ofvalue 1 1 A view on the growth potential in Asia Growing mortality protection gap New Swiss Re study highlights a USD 120 bn sales opportunity for the industry in Asia: USD bn 2000 2004 2007 2010 CAGR Mortality China 3,731 6,521 11,162 18,745 18% protection Income to gap Japan 6,204 6,555 6,314 8,445 3% maintain living India 2,045 3,061 4,876 6,676 13% standard Savings South 1,759 2,477 3,688 3,615 7% Life insurance Korea Resources required Resources Australia 550 822 1,027 989 6% readily available readily Indonesia 256 443 531 711 11% Thailand 294 321 465 533 6% 40% of respondents to the survey said families would or might struggle financially in the event of Hong Kong 396 401 425 473 2% an early death to the main breadwinner with 50% of the respondents willing to pay at or Malaysia 171 224 288 380 8% above market rates for life insurance. Vietnam 99 142 240 365 14% Study highlights the opportunity for insurers who Singapore 154 170 225 305 7% can move beyond traditional sales channels into broader channels with more direct access to Taiwan 103 234 197 175 5% customers combined with the capacity for better analytics and segmentation. Total 15,762 21,372 29,437 41,411 10% Source: Swiss Re report, September 2011 The Ageas Approach – Gary Crist | 29/09/11 2 A view on the growth potential in Asia (ct’d) Insurance penetration vs. per capita income Total Insurance Total (Life & Non-Life) Insurance Pentration 2010 Penetration (%) 20 Taiwan 18 16 14 Hong Kong 12 Korea Japan 10 8 India Australia 6 Thailand 4 Malaysia China 2 Indonesia, Philippines, Vietnam 0 0 500 1,000 1,500 2,000 2,500 3,000 3,500 Per Capita Premium (EUR) Penetration equals Total Premiums / GDP Source: Swiss Re Sigma report, No 2 / 2011 The Ageas Approach – Gary Crist | 29/09/11 3 A view on the growth potential in Asia (ct’d) Total premium growth and premium vs. GDP, Life only Real total premium growth (%) in 2010* 25 23 10 17 14 6 8 China 11 11 Indonesia 8 India 99 Taiwan 7 15 Thailand 7 Real Premium Growth 77 Source Hong Kong * Note: For India, Japan and South Korea data are FY Premium Income (% of GDP 2010) : Real GDP growth Japan – The Ageas Approach – Gary Crist | 29/09/11 Malaysia 7 Singapore 17.5 2 Vietnam Real GDP Growth 0 South Korea 1 www.oecd.org Japan 10.1 1 Philip(5) pines . For other countries, Asian Development outlook -3 8.0 7.8 09 based. For the Philippines data shown are 09 based Taiwan 6.0 Hong Kong South Korea 4.7 Japan 3.5 Singapore India 3.1 Malaysia 2.9 2011 published by the Asian Development Bank Thailand 1.2 China 0.8 Indonesia 0.7 Philippines Vietnam 4 A view on the growth potential in Asia (ct’d) Premium per capita and savings rates 3,191 3,184 3,124 Hong Kong 2,485 Taiwan Premium per Capita (2010)* Japan In USD 1,376 Singapore 51 261 South Korea 48 Malaysia 140 China Thailand 116 The Ageas Approach – Gary Crist | 29/09/11 36 Singapore China 32 32 50 34 13 8 Malaysia India Savings (% of GDP 2009) Indonesia Indonesia 30 30 30 Thailand Philippines India Vietnam Hong Kong 27 South Korea 26 Vietnam Taiwan 16 Philippines Source For other countries, Asian Development outlook 2011 published by the Asian Development Bank : Real GDP growth Japan – *Note: For India, Japan shown is are FY09 based. For Philippines, the data shown are 09 based and South Korea the data www.oecd.org . 5 2020 : Asian market expected to grow further Ageas well placed to strengthen its market position India : 2010 2020 Hong Kong 2010 2020 Inhabitants : 1,217 m 1,387 m Real GDP/capita: USD 1,029 USD 2,046 . (100% owned) GWP: USD 78 bn USD 222 bn Inhabitants: 7 m 8 m Penetration: 6.3% 7.8% Real GDP/capita: USD 30,369 USD 42,669 GWP : USD 26 bn USD 36 bn . Penetration: 11.9% 10.9% Thailand : 2010 2020 Inhabitants : 68 m 72 m Real GDP/capita: USD 3,081 USD 4,512 GWP : USD 14 bn USD 38 bn Penetration: 6.5% 11.5% China: 2010 2020 Inhabitants : 1,355 m 1,386 m Malaysia: 2010 2020 Real GDP/capita: USD 2,831 USD 5,956 inhabitants : 28 m 33 m GWP : USD 215 bn USD 578 bn Real GDP/capita: USD 6,137 USD 8,192 Penetration: 5.6% 7.0% GWP : USD 12 bn USD 22 bn Penetration: 6.9% 8.0% 2010 GWP: USD 345bn 2020 GWP: USD 896bn Source : Sigma 2002 (Swiss Re), Global Insight The Ageas Approach – Gary Crist | 29/09/11 6 Profile: Ageas in Asia A strong base for continued growth Key financial data Distribution Mix, December 2010* EUR mio FY 07 FY 08 FY 09 FY 10 (9%) Other Gross inflow * 2,869 3,292 4,071 6,093 Life 2,570 2,955 3,689 5,578 Non-Life 299 337 382 515 Net profit ** 80 9 91 94 (32%) Core skills Agents . Partnership selection and management (59%) . Proven skill transfer Bancassurance . Bancassurance . Multi-Channel distribution Gross Inflow by Country, December 2010* Agency management and training Hong Kong India (2%) Affinity marketing (6%) Direct marketing Channel conflict management Thailand . Product development and Management (14%) . ALM and Risk management Malaysia 18% China 60% *Gross inflow based on 100% company revenues ** Net profit based on Ageas’ stake The Ageas Approach – Gary Crist | 29/09/11 7 9/25/2011 Asia: Leading international Life insurers premium income 2010 Leadership positions in Ageas markets In EUR mio 22,080 10,994 6,498 HSBC 5,791 Source: Asian Life InsuranceZurich Market update 2011, Towers Watson Premiums, unweighted for Single Premiums 5,164 Premiums on a 100% basis, no adjustments forAIG minority holdings AXA is post divestment of its financial stake in Taikang Life The Ageas Approach – Gary Crist | 29/09/11 Prudential (UK) 2,759 Ageas India 2,507 Hong Kong Allianz Thailand 2,202 China Manulife Malays ia 1,972 AXA 1,927 Sun Life 1,699 ING 1,577 BNP Cardif NYLife 1,268 Aviva 1,173 Metlife 8 Asia: Leading international Life insurers premium income 2010 Leadership positions in Asia, ex Japan In EUR mio Philippines 22,942 Singapore Vietnam S. Korea Taiwan Indonesia 15,195 India Hong Kong 12,401 Thailand 11,095 China Malaysia 7,114 5,503 5,164 4,002 3,564 3,299 2,795 2,248 2,195 2,024 C G G fe fe A va fe e AI IN Li l (UK) urich lianz AX Avi HSB a Z Al Ageas Metli NYLif i Manuli Sun ent BNP Cardif ud Pr Source: Asian Life Insurance Market update 2011, Towers Watson Premiums, unweighted for Single Premiums Premiums on a 100% basis, no adjustments for minority holdings AXA is post divestment of its financial stake in Taikang Life The Ageas Approach – Gary Crist | 29/09/11 9 Ageas’ approach in Asia The key to long term success The general strategic approach of Ageas in Asia is focused on building market leading insurance businesses with strong distribution partners and leading financial institutions. Recognition that Ageas is a retail insurer where local distribution and expertise are critical success factors Focus on a limited number of select markets with attractive fundamentals where Ageas’ core skills can enhance returns Consistent, disciplined approach to investment opportunities Partner with strong institutions that share common goals and objectives where it is possible to align interests Combine partner’s skills, knowledge and local presence with Ageas’ insurance expertise A strategy of focused & controlled growth, based on added value to the partnership, is key to long term success. The Ageas Approach – Gary Crist | 29/09/11 10 High level strategy for the region Building sustainable growth Growth by partnership or Organic growth acquisition Building a critical talent pool for business Focused commercial growth Focus on activity reflected in selected growth in top-line and VANB markets Sustainable growth Strong focus on Knowledge Brokers role, adding value to the partnerships resulting in Combine local and long term profitability partner’s skills, knowledge and presence Optimize with Ageas’ operating expertise efficiency High standards of corporate governance The Ageas Approach – Gary Crist | 29/09/11 11 Basis for sustainable value adding partnerships Ageas’ approach to partnerships is both unique and effective . Rigorous partner selection process, predicated on Common Goals Common Values Alignment of interests Solid partners . Complimentary Value Added from each partner . Serious partners with good reputations Ageas’ Asian Partnerships have weathered the dual stress test of the global financial crisis and the Fortis meltdown . Strong formal agreements and documentation on Governance structure Active governance Defined terms of reference participation Defined protections in joint venture agreements . Active, broad and deep participation in governance bodies (board + board committees) . Management participation focused on control and risk functions Active management . Grooming & delivering quality people participation . Adaptability to changing needs Active regional support: . Distribution: Bancassurance, Agency, Direct Knowledge brokers across . Products: Development and Management multiple domains . Risk Management, ALM, Investment Management . Corporate Governance The Ageas Approach – Gary Crist | 29/09/11 12 Active governance participation Overview of governance committees in Asian activities Board Committees in the Various Operating Companies Nomination/ Risk Management Investment Audit Committee remuneration Executive Committee Committee Committee (mgt level committees) committee Malaysia China Thailand (mgt level committee) Hong Kong NA (mgt levelcommittee) (100% Ageas subsidiary) India The Ageas Approach – Gary Crist | 29/09/11 13 Active management participation with strong governance Supplemented by Ageas secondees in key management positions Ageas Regional Structure Asia CEO: Gary Crist Asia CFO : Filip Coremans Proportional Board and Committee representation Regional functions: Hong Kong (100% owned) Knowledge broking .