DIRECT LINE INSURANCE GROUP PLC HISTORICAL FINANCIAL INFORMATION FOR THE YEARS ENDED 31 DECEMBER 2011, 31 DECEMBER 2010 AND 31 DECEMBER 2009 The unaudited combined financial information for the three years ended 31 December 2011, 2010 and 2009 contained in this document has been prepared for the combined group which comprises Direct Line Insurance Group plc (the “Company”) and its subsidiaries, and Direct Line Versicherung AG (together referred to as the “Group”). The information has been extracted from the prospectus issued by Direct Line Insurance Group plc on 25 April 2012. The historical financial information does not comprise statutory accounts within the meaning of Section 434(3) of the Companies Act 2006, as amended. 25 April 2012 DIRECT LINE INSURANCE GROUP PLC COMBINED INCOME STATEMENT FOR THE YEARS ENDED 31 DECEMBER 2011, 2010 AND 2009 2011 2010 2009 Notes £ Million £ Million £ Million Gross earned premium................................................................................. 5 4,522.9 5,152.4 5,330.4 Reinsurance premium ceded........................................................................ 5 (269.9) (178.9) (202.1) Net earned premium.................................................................................. 4,253.0 4,973.5 5,128.3 Investment return......................................................................................... 6 281.9 321.7 365.6 Instalment income........................................................................................ 7 145.0 187.7 155.9 Other operating income ............................................................................... 7 95.1 107.5 78.6 Total income............................................................................................... 4,775.0 5,590.4 5,728.4 Insurance claims .......................................................................................... 8 (3,160.6) (4,884.7) (4,301.7) Insurance claims recoverable from reinsurers ............................................. 8 193.1 256.7 119.4 Net insurance claims.................................................................................. (2,967.5) (4,628.0) (4,182.3) Commission expenses.................................................................................. 9 (518.9) (378.7) (560.8) Other operating expenses............................................................................. 10 (944.6) (959.1) (1,064.8) Total expenses ............................................................................................ (1,463.5) (1,337.8) (1,625.6) Operating profit/(loss) ............................................................................... 344.0 (375.4) (79.5) Finance costs................................................................................................ 11 (2.7) (2.7) (4.4) Gain recognised on disposal of subsidiary and joint venture....................... 21 1.6 — 216.1 Profit/(loss) before tax ............................................................................... 342.9 (378.1) 132.2 Tax (charge)/credit....................................................................................... 12 (93.9) 106.2 0.9 Profit/(loss) for the year ............................................................................ 15 249.0 (271.9) 133.1 Profit/(loss) attributable to: Owners of the Company .............................................................................. 249.0 (271.9) 133.1 Non-controlling interests ............................................................................. — — — 249.0 (271.9) 133.1 Earnings/(loss) per share – basic & diluted (pence) 14 16.6 (18.1) 8.9 DIRECT LINE INSURANCE GROUP PLC COMBINED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEARS ENDED 31 DECEMBER 2011, 2010 AND 2009 2011 2010 2009 Notes £ Million £ Million £ Million Profit/(loss) for the year ............................................................................ 249.0 (271.9) 133.1 Other comprehensive income/(loss) Actuarial (loss)/gain on defined benefit plan............................................... 33 (0.6) 10.9 (8.6) Exchange differences on translation of foreign operations.......................... (3.5) (2.8) (19.6) Fair value gain on available-for-sale investments........................................ 28 183.8 133.6 247.9 Less: reclassification adjustments for gains................................................. 28 (52.3) (46.8) (62.1) 127.4 94.9 157.6 Tax on other comprehensive income ........................................................... (36.8) (27.4) (41.5) Other comprehensive income for the year............................................... 90.6 67.5 116.1 Total comprehensive income/(loss) for the year...................................... 339.6 (204.4) 249.2 Total comprehensive income attributable to: Owners of the Company .............................................................................. 339.6 (204.4) 249.2 Non-controlling interests ............................................................................. — — — 339.6 (204.4) 249.2 DIRECT LINE INSURANCE GROUP PLC COMBINED BALANCE SHEET AS AT 31 DECEMBER 2011, 2010 AND 2009 2011 2010 2009 Notes £ Million £ Million £ Million ASSETS Goodwill and other intangible assets ......................................................... 20 365.8 286.1 290.3 Property, plant and equipment................................................................... 18 46.9 52.6 59.2 Investment property................................................................................... 19 69.5 83.5 77.8 Reinsurance assets ..................................................................................... 22 741.6 660.9 517.6 Deferred acquisition costs.......................................................................... 23 310.5 299.5 338.5 Prepayments, accrued income and other assets ......................................... 92.2 113.3 92.2 Insurance and other receivables................................................................. 25 1,252.9 1,606.2 1,732.8 Current tax assets....................................................................................... 12 — 25.9 50.8 Deferred tax assets..................................................................................... 13 26.9 17.0 17.1 Derivative financial instruments................................................................ 32 0.1 — 1.3 Retirement benefit asset............................................................................. 33 2.6 — — Financial investments ................................................................................ 24 9,480.3 8,830.5 8,747.9 Cash and cash equivalents ......................................................................... 26 1,379.8 1,841.4 1,260.3 Assets held for sale .................................................................................... 17 1.0 — — Total assets ............................................................................................... 13,770.1 13,816.9 13,185.8 EQUITY Invested capital .......................................................................................... 27 1,500.0 1,500.0 1,500.0 Other reserves ............................................................................................ 28 575.2 590.4 411.4 Retained earnings....................................................................................... 28 1,537.6 1,133.2 1,410.7 Total invested equity................................................................................ 3,612.8 3,223.6 3,322.1 Non-controlling interest............................................................................. 28 258.5 258.5 258.5 Total equity .............................................................................................. 3,871.3 3,482.1 3,580.6 LIABILITIES Insurance liabilities.................................................................................... 29, 30 6,509.0 6,941.4 5,928.5 Unearned premium reserve........................................................................ 29 1,931.6 2,288.6 2,499.8 Borrowings ................................................................................................ 31 317.9 327.1 285.2 Derivative financial instruments................................................................ 32 — 0.7 — Retirement benefit obligations................................................................... 33 — 0.1 13.6 Trade and other payables including insurance payables............................ 34 910.2 698.0 801.0 Deferred tax liabilities ............................................................................... 13 12.1 76.3 76.8 Current tax liabilities ................................................................................. 12 218.0 2.6 0.3 Total liabilities.......................................................................................... 9,898.8 10,334.8 9,605.2 Total equity and liabilities....................................................................... 13,770.1 13,816.9 13,185.8 DIRECT LINE INSURANCE GROUP PLC COMBINED STATEMENT OF CHANGES IN EQUITY FOR THE YEARS ENDED 31 DECEMBER 2011, 2010 AND 2009 Total Non- Invested Other Retained invested controlling capital reserves earnings equity interest Total equity Note £ Million £ Million £ Million £ Million £ Million £ Million Balance as at 1 January 2009.................................... 1,500.0 119.0 1,312.6 2,931.6 258.5 3,190.1 Profit for the year......................................................... — — 133.1 133.1 — 133.1 Other comprehensive income .....................................