THE NEW RETAIL DISTRIBUTION MODEL

Context

Romania – Political & Economical news

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World Bank to provide Romania EUR 400 mil before year-end; the money comes with some conditions : progress in implementation of reforms in health, energy and transport.

Boards of Directors of EFG Eurobank and Alpha Bank approved the merger of the two banks, which will form the largest credit institution in Greece and Southeastern Europe. As a consequence, the New York Stock Market closed on Monday with a 2% growth, encouraging investors in spite of the European debt crisis.

Romania’s GDP rose in Q2 by 0.2% from the previous quarter, in adjusted series. Year-on-year, the GDP gained 1.4% in gross series and 0.3% in adjusted series. GDP is likely to grow by 3.9% in 2012 and by 4.5% in 2013, largely fueled by domestic consumption.

Industrial production slows down in June to +1.8% y-o-y from +8% in the previous month, according to Eurostat.

The general consolidated budget recorded in the first seven months represents 2.09% of GDP.

• Fitch revises Romania’s credit rating up one notch to investment grade (BBB-);

• Ministry of Finance publishes fiscal strategy for 2012-2014; Fiscal council deems plan realistic, but vague.

• Romania is looking to China for investors in several projects, including the construction of two nuclear reactors, new coal facilities for thermal power producer Termoelectrica, and a new subway line. The Romanian delegation included also a member of Uniqa Asigurari.

Source Eurostat, NBR, NIS ,Ministry of Finance

Overlook on insurance marketGeneral insurance

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H1: 10.8% decrease of General Insurance (GWP = RON 3,16 billion)

MPTL = - 17,49%( RON 1,13 billion)Motor Hull Insurance = - 20% (RON 996 mio)67% OF GENERAL INSURANCE MARKET

= MOTOR INSURANCEProperty Insurance increased due to mandatory

household policies

Indemnities paid by nonlife insurers = Ron 2.1 billion

Source UNSAR, ISC, Data reported by companies

Total market GWP H1 2011 = RON 4.02 billion 7.43% vs. H1 2010

Astra, 551.31

Allianz-Tiriac, 410.2

Asirom, 324.39

Groupama, 320.58

BCR Asig, 231.56

Omniasig, 433.13

Generali, 154.96

-20-10010203040

-4.09

-17.33

37.29

-12.93-2.2

-10.5-18.04

GWP Evolution of main playersH1 2011 vs H1 2010

Overlook on insurance marketLife Insurance

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H1: 3.81% increase of life insurance( GWP = RON 860 mio)

Indemnities paid by life insurers = Ron 339 mio (+ 4.52% vs. H1 2010)

Source UNSAR, ISC

-12-10

-8-6-4-202468

1012

ING BCR Viata

Allianz Tiriac

Generali Asirom Aviva AXA LI-0.63

8.53 8

0.67

-5.28

-11.59

-0.89

GWP Evolution of main players H1 2011 vs H1 2010

ING, 272.7

BCR Viata, 167.02

Allianz Tiriac, 50.6

Generali, 45.62

Asirom, 44.23Aviva, 34 Axa LI, 11.06

Health insurance market evolution• The private health insurance market in Romania registered, for the first

6 months, a 15% increase, reaching 15 million RON, comparing to 12 million RON in S1 2010

• According to the forecasts, the life insurance market will not increase in 2011 with more than 3-5%, while the life health insurance market could reach a maximum increase of 15%

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PROJECTPORTFOLIO

Q1 Q2 Q3 Q4

Active Projects Updated8 Scale

L

M

S

Large > 100k EUR

Med 50k - 100k EUR

Small 0-50k EUR

StatusR

A

G

Red

Amber

Green

Priorityhigh

H Hold

MED

LOW

ImpactH

M

L

Review all letters and forms sent to the clients11

Orphan Customers4 R highSH

Customer Contact Detail5 GS highH

GM highH

Review proposed payment to limit cash collection16 R highMH

Commission Scheme20b G highSH

Open New Agencies L 21 G highH

Core System Implementation L 24 GH

Outstanding and GWP26 highSH R

New Rider added to existing portfolio

27 MEDGSL

high

Bancassurance Product28highGSH

Q1 Q2 Q3 Q4

Active Projects Updated9 Scale

L

M

S

Large > 100k EUR

Med 50k - 100k EUR

Small 0-50k EUR

StatusR

A

G

Red

Amber

Green

Priorityhigh

H Hold

MED

LOW

UL Product29

Individual Health Product31

ImpactH

M

L

CSA Certification32

BCP33

Term Risc +30

highGSH

highGSH

highGSH

highGMH

highG

SH

Group Product highSH34 H

Q1 Q2 Q3 Q4

Closure /Postponed Projects Updated 10 Scale

L

M

S

Large > 100k EUR

Med 50k - 100k EUR

Small 0-50k EUR

StatusR

A

G

Red

Amber

Green

Priorityhigh

H Hold

MED

LOW

ImpactH

M

L

Clean Portffolio Payment History3 R highSH

Implement Contact Center16

highLH A

Managment Activities20 ahighSH A

SAP Migration23 H GL high

Decrease Frequency of Payment

6

Implement retention plan for existing portfolio12

Implement a digital Repository of documents18

Implement Mass Printing19

Relocation the Company1

H

H

H

H

H

Product development22 H GL high

11

New Commission Scheme

Principles

• “Fixed” Commission + Acquisition Commission & Bonuses &Override

12

68% x GWP for Main Cover

Current Commission Scheme do not accommodate current business model –( ex. Missing Claw Back )

13

The Business Model SF B

4 x 4 x 4

Sales Force Structure – SF BSales Director

Regional Director

Office Director

Financial Adviser

14

4 x 4 x 4

Sales Force A + B15

Offices Agencies

Office Financial Adviser “Jobs”

16

Recruitment + Marketing Dpt representativeRecruiting + Marketing representative

Recruiting + Training+ Operations representative

Recruiting + Joint Call + Leadership

4 x 4 x 4

Agency - still 4 Teams

17

4 x 4 x 4

Team 1

Team 2 Team 3

Team 4

Agency Financial Adviser “Jobs”

18

Recruitment + Marketing Dpt representative

Recruiting+ Marketing Representative 4 x 4 x 4

19

Sensitivity Analysis

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Evolution

400 600 800 1000 1200 1400 160062.0%

64.0%

66.0%

68.0%

70.0%

72.0%

Financial Consultant Number Variable

Commission vs APE

Consultant Financial No

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Evolution

0.6 0.8 1 1.2 1.4 1.6 1.8 20.0%

20.0%

40.0%

60.0%

80.0%

100.0%

Productivity Variable

Commission vs APE

Productivity

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Evolution

1100 1200 1300 1400 1500 1600 1700 1800 19000.0%

10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%90.0%

AVG Premium Variable

Commission vs APE