1. Title Slide JUN 8 – 10, 2015 www.bermudacaptive.bm Getting Employee Benefits and Pension Programs into your Captive

2. HIGHLY RESTRICTED Captive Financing For Employee Benefit Obligations

3. Strategic Overview ▀ Use our captive insurance companies to reinsure employee benefit obligations –US post retirement medical (PRM) –International pension plans (PenCap Program) –International life, disability and medical insurance (IEB Program)

4. Captive Overview CCRSLRed DiskRed ReRed Life Re Established 1992199420062013 Type ReinsuranceDirect/Reinsurance Reinsurance Domicile Dublin South CarolinaBermuda GWP PC - 2014 N/A$34 M$90 MN/A GWP EB / Pensions - 2014 $0*N/A$81 M$0 + Tot PC Assets @ YE 14 N/A$112 M$439 MN/A Tot EB Assets @ YE 14 $1,294 MN/AIncl.$740 M Lines of Coverage Pensions – UK, Ireland, Germany Global Property Int’l Casualty EU XS Liability XS of Integrated Exec Liability US Casualty WW Terrorism Int’l EB TV Wrap Up US Life Pensions – Canada * Pension premium written in 2011 = $659 M. + Pension premium written in 2013 = $466 M.

5. Transaction Structure for PenCap Consolidated Group Corporate Pension Plans Solvency Capital Reserves Reinsurance Contract Coca-Cola CCRSL Coca-Cola Reinsurance Services Limited Dividends Premium Annuity Contract Fronter Premium less charges Capital Contribution

6. Strategic Overview – PenCap Program ▀ Increases scale by consolidating plan assets –Generates increased asset returns & lower investment manager fees –Centralizes control of investment strategies –Improves management of investment risk ▀ Allows funding up of pension plans with No risk of trapped assets

7. International Pension Plans First 4 international pension plan targets completed ▀ Germany: approved 2009 ($278MM) ▀ UK and Ireland: approved 2010 ($630MM) ▀ Canada: approved 2013 ($595MM) What now? ▀ Novate from Ireland to Bermuda ▀ Readiness for Sol II ▀ Move to Cash Balance Plans reduces targets ▀ Size matters: can we replicate transactions efficiently? ▀ Monitoring U.S.: discount rates, discount rates, discount rates

8. Transaction Structure for PRM Policy payment VEBA Stop Loss Policy premium Insurer Reinsurance payment Reinsurance premium Red Re TCCC Payment to cover member claims Company Contribution to fund VEBA

9. Retiree Medical Background Plan Overview Medical, dental and life benefits for retired US and certain globally mobile associates hired prior to 2009 TCCC currently pays a substantial portion of the premiums (in some case, the entire cost) What are the “Caps”? In 2007, TCCC announced it was limiting its contributions towards retiree medical and dental premiums When are the Caps Expected to Apply? 2017 for medical Dental caps are not expected to apply for several years What will Be the Impact? Any medical or dental cost in excess of their respective limits would be paid by the retirees Once the caps apply, retiree premiums will increase substantially What has TCCC Done to Help? Communication campaign in 2007 In 2008 retirees received an increase in their pension in order to offset future medical costs Reminders in annual open enrollment Managed costs, resulting in a delay in the cap applying What are our financing options?

10. PRM Financing Considerations Company sponsored VS Exchanges Manage P&L efficiently What will be development of healthcare in U.S. with ACA? Stop Loss VS Annutiy Funding flexibility

11. Strategic Overview - IEB Program Finance non-U.S. employee risk benefits in a captive insurance company, leveraging the existing risk management model with the following key objectives:  Improve control over the management and financing of risk benefits  Reduced insurance costs by removing or reducing profit margins  Detailed data on experience to better manage the underlying drivers of cost  Potentially leverage opportunities for “system”  Flexibility to offer benefits driven by company philosophy, outside market norms  Improves management of investment risk and provides efficient tax treatment of captive 3rd party business

12. IEB Program – What have we Done?  Running since 2006  Initial savings: 15 – 20%  169 policies covering 84 operations in 68 countries will cede US$60MM of premiums into the Captive for 2015  Have been able to hold life and disability premiums level  Have been able to hold medical premium increases to at or below local medical inflation  Recent additions: U.S. Life, Mobile population medical/dental  Other considerations: U.S. infinity benefits, U.S. Medical Stop Loss decided not needed

13. Structure of IEB Program  Program includes Life, Disability, Medical, Accident, Voluntary or employee-paid insurances as well as other benefits, where possible.  Uses two fronting companies to issue local policies and provide local administration – MetLife and Generali.  Captive assumes risk and holds 100% of the premiums and reserves (where legally possible).  Local operations continue to determine benefit design in line with HR philosophies (local and global).  Experience is reviewed periodically based on the coverage.

14. Benefits Pricing within the IEB Program  The IEB Program is designed to run on a “not for profit” basis, easing or removing insurance profits.  Annual premiums determined by Captive based on experience risk philosophy.  Experience tracked by contract such that each business “pays its own way”.  Insurance pricing is based on local market conditions and plan utilization

15. IEB Program – Annual Renewal Process Key Dates  September 15 – Local offices receive census data requests from the vendor  October 15 – Census data as of September 30 is due back to the vendors.  November 1 – Renewal rates finalized and communicated during the month  December 1 – Premium invoices issued locally by vendors  January 15 – Annual premiums paid. All invoices must be paid on time and as issued without exception by January 15