1. CCE – 17 Septembre 2012 –Page 1 Tout ce que vous avez toujours voulu savoir sur le secteur des assurances sans jamais oser le demander aux

2. The attractive Polish Market An improvement in profitability from 2011 Still a promising market compared to the other European countries But still a lot to be done in terms of customers education Life and non life: What differentiates them ? The main actors (In Poland) (Life) The main actors (In Poland) (Non Life) Nowadays, the future of Polish distribution model remains an open issue. Legal forms of Polish insurance companies Conducing Insurance business in Poland Insurance companies supervision key ratios measuring the right amount of the premium How to get balanced loss and claim ratios ? Agenda

3. The attractive Polish Market With the best economic growth forecast in Europe (+2.5% in 2012), driven by a strong domestic demand, and 38 million inhabitants (7,6% from EU), with an ever increasing living standards, Poland attracts insurers, quite sure to find here increasing number of policyholders. 1991 VieNon Vie Nb. assureurs 416 Primes0,20 Md€1,20 Md€ Reserves0,01 Md€0,60 Md€ 2011 VieNon Vie Nb. assureurs 2933 Primes7,7 Md€6,1 Md€ Reserves17,7 Md€8,8 Md€ CCE – 17 Septembre 2012 –Page 3 – Source: L’ARGUS DE L’ASSURANCE Aout 2012)

4. An improvement in profitability from 2011 for this volatile market Taking advantage of a more favorable legal environment, many non-life insurers were giving rise to a brighter outlook for this business whose profitability suffered over the period to gain market share in Poland. Consequently the year 2010 has resulted in a deterioration of the P&L. The market recovered in 2011 his profitability, thanks to a sharp increasing in tariffs (+ 15% compared to 2010). CCE – 17 Septembre 2012 –Page 4 Source: L’ARGUS DE L’ASSURANCE Aout 2012)

5. Still a promising market compared to the other European countries  insurance premium per capita in Poland 5 times less than average in Europe  Ratio of GWP to GDP 1 460 PLN 7 703 PLN Source: KNF, CEA CCE – 17 Septembre 2012 –Page 5

6. … but still a lot to be done in terms of customer education SHORT TERM ORIENTED SINGLE PREMIUMS ORIENTED LOW LEVEL OF RISK AVERSION / HIGH RESEARCH OF PROFIT PROTECTION BELONGS RATHER TO THE FAMILY OR TO THE STATE HIGH DEMAND FOR LIQUIIDITY LACK OF CONFIDENCE REGARDING PENSIONS FUNDS LOOKING FOR TAX ADVANTAGES CCE – 17 Septembre 2012 –Page 6

7.  Duty of payment by the insurer, after the event of damage  Compensation never exceed the loss sustained: ensuring there is no unjustified enrichment  If there is more than one insurance contract for the same object and the same risk, the total amount payable cannot exceed the losses incurred.  legal subrogation arises in favor of insurer.  The amount of compensation shall be fixed in advance for the duration of the contract (before the claim occurs)  Possible unjustified enrichment  If there is more than one insurance contract for the same object and the same risk, the total amount payable may be cumulated.  No legal subrogation in favor of insurer Compensation principle Lump sum principle Redistributive Management Short cycle Managed by capitalisation Long Cycle Non Life insurance v/s life insurance CCE – 17 Septembre 2012 –Page 7

8. Main Life insurers on the Polish market Source: KNF CCE – 17 Septembre 2012 –Page 8

9. Main NonLife insurers on the Polish market Source: KNF Page 9 – 17 th September 2012 – CEE – CALIE Poland CCE – 17 Septembre 2012 –Page 9

10. Nowadays, the future of Polish distribution model remains an open issue Supervisor Clients Mediterranean Model Anglo-Saxon Model CCE – 17 Septembre 2012 –Page 10

11. joint-stock companies governed by the Law of Insurance Activity (26; 73%) PZU SA Aviva TUO SA TUiR WARTA SA TU EUROPA SA GENERALI TU SA AXA TUiR SA mutual insurance companies (6; 27%) CONCORDIA Polska TUW TUW CUPRUM TUW TUW TUW SKOK POCZTOWE TUW TUW TUZ Polish branches of foreign insurance companies (16) CALIE Prevoir-Vie LIBERTY DIRECT Foreign insurance companies from the European Community operating under freedom of service in Poland (over 600) CACI MetLife Ltd. OeKB Versicherung AG Reinsurers: Polskie Towarzystwo Reasekuracji SA Legal forms of Polish insurance companies CCE – 17 Septembre 2012 –Page 11

12. Conducing Insurance business in Poland CCE – 17 Septembre 2012 –Page 12 General rule: Life and non-life insurance activity cannot be conducted by one company – obligation of division non-life insurance companies (authorized to conduct activity within the scope of property and also accident and sickness insurance) life insurance companies (authorized to conduct insurance within the scope of life insurance). is one of the fundamental principles The division between life and non-life insurance companies is one of the fundamental principles of both Polish and European insurance legislations.

13. in the event of failure to comply with the legislative and regulatory provisions in the event of default by the Insurer Suspension or withdrawal of approval Transfer of portfolio compulsory liquidation oror Insurance companies supervision Supervision over Insurance companies registered in Poland is performed by the Polish Commission for Financial Supervision (KNF) Supervision over Branch of the EU-Domiciled insurance company is performed by the supervision authority of the parent company (In CALIE case, Commissariat aux Assurances) EU-Domiciled insurance company in respect to the activity performed in Poland on the grounds of freedom of services, is performed by the supervision authority of the country of origin Missions of the Supervisor: Monitoring the requirements related to the protection of the insureds Controlling the solvency of the Insurance and re-insurance companies Anti Money laundry CCE – 17 Septembre 2012 –Page 13

14. key ratios measuring the right amount of the premium Claims ratio Claims ratio: Total claims payable as a percentage of premium income. (not used in Poland) Loss Ratio Loss Ratio: total losses incurred (paid and reserved) in claims plus adjustment expenses, in percentage of the total earned premiums. Combined Ratio Combined Ratio: In general (non-life) insurance, the combined ratio is claims and operating and acquisition expenses as a percentage of premium income. CCE – 17 Septembre 2012 –Page 14

15. 1 – Spread risks 2 – Divide risks 3 – measures to prevent and control the risks 4 – Setting up grace periods 5 – creates penalties for false statements or omissions How to get balanced loss and claim ratios ? To maintain this balance, several mechanisms of action are possible: CCE – 17 Septembre 2012 –Page 15