1. 1 “ The Growth Imperative: a MENA Perspective” Yassir Albaharna, FCII CEO, Arab Insurance Group (Arig) International Insurance Society Tuesday, 15 July 2008, Taipei

2. 2 MENA Region MENA region consists of the following countries: –GCC: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates –North Africa: Algeria, Egypt, Libya, Mauritania, Morocco, Sudan, Tunisia –Levant: Iraq, Jordan, Lebanon, Palestine, Syria and Yemen, Iraq Source of information: Arig Annual Insurance Reviews, directories and internal data and Sigma No. 4/2007

3. 3 Insurance Penetration and Density 1.03% insurance penetration (0.87% Non Life and 0.17% Life) compared to 7.5% worldwide US$ 41 insurance density against US$ 555 worldwide GCC represented the highest insurance density

4. 4 Economic Overview /1 Yet, GDP 2006 represents 2.3% of the world total

5. 5 Economic Overview / 2 Energy Based Economies: Algeria, Bahrain, Kuwait, UAE, KSA, Oman, Qatar, Libya Non Energy Based Economies : Egypt, Jordan, Lebanon, Mauritania, Morocco, Palestine, Sudan, Syria, Tunisia, Yemen

6. 6 Insurance Premiums

7. 7 Insurance Growth Currently one of the fastest growing insurance market in the world

8. 8 Growth Drivers + Buoyant economies & emerging markets + Infrastructure spending + New products: health & life + Development of Takaful + Privatization of state owned companies + Emerging financial centers: Dubai, Bahrain & Qatar - Awareness - Enforcing regulations - Political stability - HR & professional skills development - Membership in WTO & GATS

9. 9 Profit Drivers + Reinsurance over-dependence + Portfolio composition + Low cat potential + litigation + investor expectations + taxation - Competitive pressures - Pricing adequacy - Fragmented markets - Capital management - Product cycle - M&A or cross boarder integration

10. 10 Conclusions 1. The economic realities of today’s MENA insurance markets make it easier to achieve profitable growth - but for how long? 2. Choosing between investing for growth and delivering profitability from existing business is a source of tension 3. Most companies cut costs and increase productivity, but the ability to drive continuous and profitable top-line growth is under threat