1 Legal protection insurance – The German LPI model Rainer Tögel Warsaw, 3th June 2014

2 Agenda Product structure German legal framework German LPI business model Customer satisfaction D.A.S. - Who we are German market key figures

3 D.A.S. 100 % owned by ERGO (Primary Insurance of Munich Re), ERGO 100 % owned by Munich Re D.A.S. – Who we are 000 Structure as of 2014 VIWIS GmbH 100% D.A.S. Germany / Munich 100 % ERGO / Duesseldorf MR / Munich

4 D.A.S. - domestic and international market leader in the field of legal protection insurance ~ 60 % of D.A.S. GWP is outside Germany (CAGR 1990 – 2012: 10 %) Worldwide market share of 16 % D.A.S. – Who we are 16 countries in Europe South Korea Canada Approx. 12 million customers worldwide

5 D.A.S. Allianz Roland ARAG Örag Advocard HUK Deurag LVM R+V Competitors Number of LPI insurer Germany - profitable mature LPI market (~ 42 % household penetration) 1 1 % % Market combined ratio in % 1 For own account, gross, LOCAL GAAP Source: GDV, Annual Reports, DI D.A.S. German market key figures Market volume in €m Premiums written – for own account, gross, LOCAL GAAP , ,329 3,245 3,223 3,204 3,158

6 42 % of the worldwide LPI market is in Germany Source: European Association of Insurers (CEA), German Association of Insurers (GDV), Annual Reports, D.A.S. International research (DI) Note: figures incl. add-on business, on local GAAP TOTAL ~ €7.9 bn World market split according to countries 2011 UK 826 €m Netherlands 800 Germany 3,329 France 910 Belgium 389 Austria 444 Other 1,187 TOTAL ~ €7.9 bn ARAG 723 (9.2%) Axa ~350 (4.4%) Other ~4,755 (60.2%) D.A.S. 1,073 (14.6%) Generali ~347 (~4.4%) Allianz ~636 (8.1%) €m World market split according to competitors 2011 TOTAL ~ €7.9 bn UK 826 World market split according to countries 2011 German market key figures

7 Lines of LP-Business LP as tenant / owner of real estate LP as landlord of real estate (“Family”) LP for private and occupational disputes Motor-LP Commercial - LP Stand alone Policies Group Policies IndividualsCompanies Policies Product structure Broad range of LPI products

8 German legal framework LPI market in Germany highly regulated Legal services only provided by independant lawyers (advocats) Monopoly LPI is allowed to provide legal services with inhouse resources (company lawyers) Germany Free choice of lawyer by customers Provider/lawyers chosen by LPI´s Germany Free choice Fixed fees by law Freely negotiable fees Germany Fees Highly regulated market unregulated free market

9 German LPI business model The change of business model LPI market strategy until 2005 LPI market strategy Effects: - low customer satisfaction - customer wants more than cost reimbursement - customer wants access to law - customer wants solutions for every legal issue - customer wants preventive legal advice Decrease in premiums ! LPI as cost reimbursement company LPI provides legal services with inhouse resources/ LPI-chosen lawyers LPI as cost reimbursement company LPI provides legal services with inhouse resources/ LPI-chosen lawyers

10 German LPI business model Today´s business model – Squaring the circle D.A.S.) Customer Lawyer (advocat) Legal advice over the phone Providing lawyers Mediation Document Check Web check D.A.S. App broad range of legal services

11 Question:How pleased are you generally with the handling of your legal matter/LPI case by D.A.S.? Basis: 200 customers (138 telephone legal advice, 62 mediation), values in percentage Debt collection Legal support Recommendation of lawyers Legal advice over the phone Mediation Case management Legal information Final consultation Elements of legal services The majority of customers judge the service performance of D.A.S. extremely positiv Customer satisfaction

12 Legal protection insurance – The German LPI model Rainer Tögel Warsaw, 3th June 2014