1. British Islamic Insurance Holdings BIIH 1 November 2007Strictly Confidential – © British Islamic Insurance Holdings Ltd 2007 1 British Islamic Insurance Holdings Takaful Summit 1 November 2007

2. British Islamic Insurance Holdings BIIH 1 November 2007Strictly Confidential – © British Islamic Insurance Holdings Ltd 2007 2 INTRODUCTION The UK’s First Dedicated, Standalone Takaful Insurer Who is BIIH?  British Islamic Insurance Holdings Ltd  Currently seeking authorisation from UK FSA for a general insurer and an intermediary  Intention to offer personal lines, SME, savings and protection, others  Planning to launch H1-2008  Capital predominantly from GCC  Initially UK focussed… later Europe, GCC, Asia

3. British Islamic Insurance Holdings BIIH 1 November 2007Strictly Confidential – © British Islamic Insurance Holdings Ltd 2007 3 MARKET OPPORTUNITY  > 15 million Muslims in Europe  > 2 million UK Muslims  70% < 35 years of age  > 500,000 Muslim-owned cars  > 400,000 Muslim homes  > 100,000 Muslim-owned businesses A Sizeable UK Market Segment

4. British Islamic Insurance Holdings BIIH 1 November 2007Strictly Confidential – © British Islamic Insurance Holdings Ltd 2007 4 POPULATION DENSITY  > 70% UK Muslim population live in 723 postcode sectors  London,  Birmingham, East Midlands  Lancashire (Blackburn, Burnley)  Yorkshire (Leeds, Bradford)  Scotland (Glasgow) Population Density Means Ability To Concentrate Marketing, Offset By Insurance Risk Concentration

5. British Islamic Insurance Holdings BIIH 1 November 2007Strictly Confidential – © British Islamic Insurance Holdings Ltd 2007 5 BUSINESS MODEL Sales Channels MotorHomeownersSavingsHealth?Pension?CommercialMortgages?Protection BIIH Insurer BIIH Intermediary Other Companies Private Customers Businesses Creation of a Muslim Focused FS Affinity Marketer

6. British Islamic Insurance Holdings BIIH 1 November 2007Strictly Confidential – © British Islamic Insurance Holdings Ltd 2007 6 RESEARCH The majority of the Muslim respondents have bought halal food, and always seek out halal products where possible Which of the following best describes how often you buy halal products?

7. British Islamic Insurance Holdings BIIH 1 November 2007Strictly Confidential – © British Islamic Insurance Holdings Ltd 2007 Only 9% of Muslim respondents have heard of Takaful: 7 RESEARCH Base: All Muslims interviewed

8. British Islamic Insurance Holdings BIIH 1 November 2007Strictly Confidential – © British Islamic Insurance Holdings Ltd 2007 8 RESEARCH How likely would you be to buy a halal insurance product if it were:

9. British Islamic Insurance Holdings BIIH 1 November 2007Strictly Confidential – © British Islamic Insurance Holdings Ltd 2007 CHALLENGES 9  KNOWLEDGE: Fewer than 10% of Muslims recognise/understand Takaful, or even Islamic Finance  HISTORY: History of Islamic Finance in the UK has few successful role models  CYNICISM: Research indicates that consumers are sceptical about “Islamic Finance” and its “true” Shariah compliance  COST: Past experience indicates Islamic products are more expensive than conventional (Haram) product

10. British Islamic Insurance Holdings BIIH 1 November 2007Strictly Confidential – © British Islamic Insurance Holdings Ltd 2007 THE FUTURE 10  Clearly a market … but is it achievable?  Key challenges….  Competitive product (price and benefits)  Education, education, education  Transition of Islamic finance products to non-Muslim consumers  Increased supply of Islamic financial services, stimulating knowledge and demand  Further development of more products founded on Islamic principles The Most Exciting FS Marketing Opportunity in UK