FTSE COMPANY REPORT Share price analysis relative to sector and index performance Data as at: 18 December 2018 Esure Group ESUR Nonlife Insurance — GBP 2.796 at close 18 December 2018 Absolute Relative to FTSE UK All-Share Sector Relative to FTSE UK All-Share Index PERFORMANCE 18-Dec-2018 18-Dec-2018 18-Dec-2018 2.8 115 130 1D WTD MTD YTD Absolute 0.0 0.0 0.1 12.5 2.7 110 120 Rel.Sector -0.1 1.0 7.1 21.2 2.6 105 Rel.Market 0.8 1.9 4.5 29.7 2.5 110 100 VALUATION 2.4 (local currency) (local 95 100 2.3 Trailing Relative Price Relative Price 90 2.2 90 PE 14.6 Absolute Price Price Absolute 85 EV/EBITDA 10.7 2.1 80 PCF 12.8 2 80 PB 3.9 1.9 75 70 Price/Sales 1.5 Dec-2017 Mar-2018 Jun-2018 Sep-2018 Dec-2018 Dec-2017 Mar-2018 Jun-2018 Sep-2018 Dec-2018 Dec-2017 Mar-2018 Jun-2018 Sep-2018 Dec-2018 Div Yield 3.4 Absolute Price 4-wk mov.avg. 13-wk mov.avg. Relative Price 4-wk mov.avg. 13-wk mov.avg. Relative Price 4-wk mov.avg. 13-wk mov.avg. Div Payout 70.1 100 100 100 ROE 28.2 90 90 90 Net Debt/Equity 0.4 80 80 80 70 70 70 60 60 DESCRIPTION 60 50 50 50 The Company is the holding company for the esure 40 40 RSI (Absolute) RSI 40 group of companies, established to write general 30 30 insurance for private cars and homes. 20 20 30 10 10 20 RSI (Relative to FTSE UK All-Share Index) UK All-Share to FTSE (Relative RSI RSI (Relative to FTSE UK All-Share Sector) UK All-Share to FTSE (Relative RSI 0 0 10 Dec-2017 Mar-2018 Jun-2018 Sep-2018 Dec-2018 Dec-2017 Mar-2018 Jun-2018 Sep-2018 Dec-2018 Dec-2017 Mar-2018 Jun-2018 Sep-2018 Dec-2018 See final page and http://www.londonstockexchange.com/prices-and-markets/stocks/services-stock/ftse-note.htm for further details. Past performance is no guarantee of future results. Please see the final page for important legal disclosures. 1 of 4 FTSE COMPANY REPORT: Esure Group 18 December 2018 Valuation Metrics Price to Earnings (PE) EV to EBITDA Price to Book (PB) 30-Nov-2018 30-Nov-2018 30-Nov-2018 16 15 5 14 14 4.5 +1SD 13 12 +1SD 4 +1SD 12 10 Avg Avg 11 Avg 3.5 8 10 -1SD 3 6 -1SD 9 -1SD 2.5 4 8 2 7 2 Dec-2013 Dec-2014 Dec-2015 Dec-2016 Dec-2017 Dec-2013 Dec-2014 Dec-2015 Dec-2016 Dec-2017 Dec-2013 Dec-2014 Dec-2015 Dec-2016 Dec-2017 Hiscox 120.0 Beazley 18.5 Jardine Lloyd Thompson Group 11.0 Jardine Lloyd Thompson Group 35.0 Jardine Lloyd Thompson Group 15.6 Admiral Group 9.3 Beazley 29.5 Admiral Group 12.1 Esure Group 3.9 Nonlife Insurance 22.4 Nonlife Insurance 10.8 Sabre Insurance Group 3.1 RSA Insurance Group 20.7 Sabre Insurance Group 10.7 Hiscox 2.8 Admiral Group 17.9 Esure Group 10.7 Beazley 2.7 Sabre Insurance Group 15.9 Hastings Group Holdings 7.6 Nonlife Insurance 2.5 Esure Group 14.6 RSA Insurance Group 6.9 Hastings Group Holdings 2.1 Direct Line Insurance Group 10.4 Direct Line Insurance Group 4.6 Direct Line Insurance Group 1.7 Hastings Group Holdings 9.9 Lancashire Holdings 0.0 RSA Insurance Group 1.6 Lancashire Holdings -23.1 Hiscox 0.0 Lancashire Holdings 1.5 -40 -20 0 20 40 60 80 100 120 140 0 2 4 6 8 10 12 14 16 18 20 024681012 Price to Cash Flow (PCF) Dividend Yield % Price to Sales (PS) 30-Nov-2018 30-Nov-2018 30-Nov-2018 20 8 2.1 2 7 +1SD 1.9 +1SD 15 6 1.8 +1SD 5 1.7 Avg Avg 1.6 10 4 Avg 1.5 3 -1SD 1.4 -1SD 5 -1SD 2 1.3 1.2 1 1.1 0 ǁǁ ǁ ǁ 0 1 Dec-2013 Dec-2014 Dec-2015 Dec-2016 Dec-2017 Dec-2013 Dec-2014 Dec-2015 Dec-2016 Dec-2017 Dec-2013 Dec-2014 Dec-2015 Dec-2016 Dec-2017 Hiscox 70.4 Hastings Group Holdings 6.6 Admiral Group 5.3 RSA Insurance Group 24.0 Direct Line Insurance Group 6.2 Sabre Insurance Group 3.8 Jardine Lloyd Thompson Group 20.3 Admiral Group 3.7 Lancashire Holdings 3.4 Beazley 16.4 RSA Insurance Group 3.6 Jardine Lloyd Thompson Group 3.0 Nonlife Insurance 16.1 Esure Group 3.4 Hiscox 2.4 Esure Group 12.8 Nonlife Insurance 3.3 Beazley 1.9 Sabre Insurance Group 11.0 Beazley 2.0 Hastings Group Holdings 1.8 Admiral Group 10.7 Lancashire Holdings 1.8 Nonlife Insurance 1.6 Direct Line Insurance Group 8.8 Jardine Lloyd Thompson Group 1.8 Esure Group 1.5 Hastings Group Holdings 5.6 Hiscox 1.7 Direct Line Insurance Group 1.2 Lancashire Holdings -94.5 Sabre Insurance Group 0.0 RSA Insurance Group 0.8 -120 -100 -80 -60 -40 -20 0 20 40 60 80 01234567 0123456 Note: bar chart reflects the top and bottom five current values for the valuation ratio in question for FTSE All Shares stocks in the same sector as the stock concerned. All valuation metrics are trailing. 2 of 4 FTSE COMPANY REPORT: Esure Group 18 December 2018 Valuation Metrics Net Debt to Equity Dividend Payout (DP) Return on Equity (RoE) 30-Nov-2018 30-Nov-2018 30-Nov-2018 0.5 +1SD 100 50 ǁǁ 90 0.4 80 +1SD 45 70 Avg 0.3 60 40 +1SD Avg 50 0.2 40 35 Avg -1SD 30 -1SD 0.1 20 30 -1SD 10 0 0 25 Dec-2013 Dec-2014 Dec-2015 Dec-2016 Dec-2017 Dec-2013 Dec-2014 Dec-2015 Dec-2016 Dec-2017 Dec-2013 Dec-2014 Dec-2015 Dec-2016 Dec-2017 Jardine Lloyd Thompson Group 1.9 Hiscox 100.0 Admiral Group 50.0 Hastings Group Holdings 0.4 Direct Line Insurance Group 100.0 Sabre Insurance Group 37.5 Esure Group 0.4 Admiral Group 95.6 Jardine Lloyd Thompson Group 33.5 Admiral Group 0.3 Nonlife Insurance 91.9 Esure Group 28.2 Lancashire Holdings 0.3 RSA Insurance Group 74.3 Hastings Group Holdings 21.7 Nonlife Insurance 0.3 Esure Group 70.1 Direct Line Insurance Group 17.1 Direct Line Insurance Group 0.3 Hastings Group Holdings 65.4 Nonlife Insurance 11.1 Beazley 0.2 Jardine Lloyd Thompson Group 62.5 Beazley 8.6 RSA Insurance Group 0.2 Sabre Insurance Group 49.3 RSA Insurance Group 7.6 Hiscox 0.2 Beazley 0.0 Hiscox 1.5 Sabre Insurance Group 0.0 Lancashire Holdings 0.0 Lancashire Holdings -6.1 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2 0 20 40 60 80 100 120 -10 0 10 20 30 40 50 60 ROE vs. PB — sector Du Pont Analysis 12 5 60 JLT 4.5 50 10 4 ǁ ADM 3.5 40 8 3 2.5 30 PB 6 2 20 1.5 4 ESUR SBRE 1 HSX 10 BEZ Nonlife Insuranc 2 HSTG 0.5 DLG LRE RSA 0 0 2014 2015 2016 2017 2018 0 0 102030405060 Net Margin Asset Turnover Gearing ROE (rhs) ǁ ROE Note: bar chart reflects the top and bottom five current values for the valuation ratio in question for FTSE All Shares stocks in the same sector as the stock concerned. All valuation metrics are trailing. 3 of 4 FTSE COMPANY REPORT: Esure Group 18 December 2018 Brief description Brief description Price to Earnings Price to Earnings (PE) is price over earnings per share. Earnings are based on the latest Gearing Gearing is Total Assets divided by Common Equity. Total Assets and Common Equity are (PE) available fiscal year earnings. each averaged over two years, that is, t and (t-1). Price to Sales (PS) Price to Sales (PS) is price divided by sales per share. It is based on sales from continuing Asset Turnover Asset turnover is Sales divided by Total Assets. Total Assets is averaged over two years, operations for the fiscal year. that is, t and (t-1). Price to Book (PB) Price to Book (PB) is price at the indicated date divided by common equity per share. Dupont Breakdown Return on Equity (RoE) = Net Margin * Gearing * Asset Turnover Common/ordinary equity is generally as reported at the most recent fiscal year-end but is Analysis adjusted to exclude minority interest, preferred stock and selected items as appropriate. RoE vs PB Plot of RoE versus PB at last month end for all FTSE UK All Share stocks in the sector Price to Cash Flow Price to Cash Flow (PCF) is price at the indicated date divided by cash flow per share. relative to the stock in question. Data may be limited to the stock in question if there are (PCF) currently no stocks in the corresponding FTSE UK All Share sector. Net Debt Equity Net Debt Equity is Net Debt as a percentage of common equity. Not calculated if Absolute Absolute graphs reflect performance for the stock in question for up to 366 days adjusted denominator (common equity) is negative for intervening corporate actions.