Fortis Insurance International | Fortis Life Insurance Ukraine | 11 October 2015 | 1 11 October 2015Fortis Insurance International | Fortis Life Insurance Ukraine 1 Prospects for the consolidation and reorganization of the Ukrainian Insurance market Gijs Jeuken CEO Fortis Insurance Ukraine

Fortis Insurance International | Fortis Life Insurance Ukraine | 11 October 2015 | 2 Market entry strategy through acquisition in 2006 –Large player in Banc assurance –Emerging player in Life Insurance – Individual Sales –Large network with over 26 offices throughout Ukraine Business Development Strategy –Investment in network and sales channels –Investment in training and proprietary sales force –Investment in systems, procedures –Maintain multi-distribution channel approach 2 About Fortis Insurance Ukraine

Fortis Insurance International | Fortis Life Insurance Ukraine | 11 October 2015 | 3 Fortis Life Insurance Ukraine is represented in all regional centers of Ukraine, and also in Crimea and Sevastopol Branches of the Company in Ukraine

Fortis Insurance International | Fortis Life Insurance Ukraine | 11 October 2015 | 4 Fortis Insurance is represented in 14 countries

Fortis Insurance International | Fortis Life Insurance Ukraine | 11 October 2015 | 5 Barrier to entry –Still relatively low –Access to distribution remains main puzzle to solve –Low penetration of proprietary distribution in the market Defining your business case –Market statistics are volatile and difficult to interpret –Portfolio projections and investment returns cannot be easily projected –Customer behavior is challenging –Customer segmentation is in its infant stages –Regulatory environment 5 Market characteristics and outlook of insurance in Ukraine

Fortis Insurance International | Fortis Life Insurance Ukraine | 11 October 2015 | 6 Consolidation –Too fragmented market for efficient and swift buy-and-build strategy –Uncertainty of sustainability of some distribution channels makes valuations difficult for some more time to come –Volatility of financials will make price setting difficult exercise, manage expectations on both sides Reorganization –Survivors will be those companies that can crack the distribution access puzzle and control intake of new business –Customer behavior will lead to a quality hurdle being raised, with only a selected group of suppliers passing the test. Crisis has accelerated this trend –In 3-5 years barrier to entry will go up again, raising entry costs for new players Success factors will be –Sizeable footprint, reasonable cost base –Below average client acquisition costs –Control over significant part of distribution channel –Be in the leading group of quality companies –With stable financial outlook and quality client portfolio 6 Outlook for Consolidation and Reorganization

Fortis Insurance International | Fortis Life Insurance Ukraine | 11 October 2015 | 7 Pure Greenfield –Control over systems and procedures from start –Quality standards defined upfront –High front-loaded costs on hiring key staff –Given current market circumstances pay-back time difficult to assess Buy and build –Control over speed of top-line growth –Synergies difficult to materialize –First footprint size to be carefully assessed upfront –Strong management team needed Growth and expansion strategy –Investment in network and distribution channels –Investment in training and proprietary sales force –Investment in systems, procedures 7 Value Creation Strategies

Fortis Insurance International | Fortis Life Insurance Ukraine | 11 October 2015 | 8 Profitability and Top-line –By technical result excluding start-up investments –As a multiple of sales volumes By balance sheet and Embedded Value –Looking at accumulated reserves and future portfolio – as lapses are difficult to predict, assumptions heavily influence the outcome of the calculations –By NAV – including a premium for size and market share By M&A valuation –Making the analogy with historic similar transactions in CEE region some years ago –……..under normal market circumstances 8 How to measure success and valuations