1. Romanian Life Insurance Market Trends for 2008 Bram Boon Head of Life Insurance Working Group, UNSAR February 11 th 2007 CFA Forecast Dinner Bucharest

2. Last Year in Numbers 42 Insurance Companies registered by the Insurance Supervisory Commission (end of 2007) 23 Ins. Co. members of UNSAR (~ 95% of the market) ~ 400 Romanian Insurance Brokers Foreign capital of the Insurance Companies ~ 90% (big international players) Total GWP ~ 2 Billion Euro (estimation for 2007) Non-life insurance ~ 81%  motor insurance more than 50% from total GWP & increasing the loss ratio Life insurance ~ 19% Penetration % GDP ~ 1.75 % Insurance density ~ 92 Euro/capita

3. The Life Insurance Market Marked by the Launch of the Pension System Substantial differentiation of product range as result of private pension launch Life insurance market reported a good increase, but nevertheless under the evolution of non-life market First year of the EU accession: 10 companies notified CSA of their intention to conduct life insurance activities in Romania, based on the free circulation of services

4. Life Insurance Market Consolidation in 2007 In 2007 it became more clear the consolidation of the life insurance market 4 important acquisitions took place:  Vienna Insurance Group acquired 98.5% of Asirom  Groupama acquired BT Asigurari  PPF Investments acquired Ardaf and RAI Asigurari  Uniqa took control of the majority share capital from Astra Life percentage in total insurance market decreased from 23% in 2005 to 19% in 2007 The life insurance market registered a growth below the growth pace of the non-life insurance => life insurance was sold with less effort, but focus was on P2 Competition increased; lower differences in market share between competitors as all life insurance companies took advantage of the Pension reform

5. General Trends for Life Insurance in 2008 Demand for life insurance will be fuelled by Economic performance and capital inflow EU accession impact Changes in the legal, social and corporate sphere: begin of development of the employee benefits market Gradually evolution from consumption driven society to savings oriented Life insurance to reach close to 3 billion lei by the end of 2010 Life insurance share on the insurance market to reach 25% by 2010

6. 2008 – The Year of Life Insurance and Voluntary Pensions 2008 will be the year of the Voluntary Pensions and Life Insurance Growth in income and development of middle class Beginning of transfer of social responsibility in the private sector: private pensions, health system, education Private pensions to increase awareness on life insurance

7. Traditional life Unit linked Pension funds Mutual funds Single premium Term life Next step: retirement services Benefits of the Multi-pillar System Helps individuals to become self-reliant in old age Reduces financial liability for governments Relieves financial obligations for younger generations Shifts responsibility from the state to employers and employees Acceleration of economic growth Boost of the local capital market Source: BCG Research & ING Global life and pension assets growth 2002-2015 USD trillion Romania

8. Customer Trends for 2008 Increase education and awareness Change of mentality as result of increasing level of debt amounts Exodus of the workforce to put pressure on the social system and determine people to become more responsible for financial planning People will learn not to rely anymore on the moral and financial support of their families Parents more open-minded and willing to invest in the future of their children

9. Thank you!