Country, industry and Skandia Vita in a nutshell

(*) Global Financial Stability Report, Arpil 2012, IFM

Insurance industry

Population: 60,6 mln GDP: 2.198 bln/$ (8th position, list by IMF) -

-2.4% (2012 est.) 2.198 bln/$ (8th position, list by IMF) Credit Rating: BBB+ Public debt: 120,7% of GDP (2012 est.) Household savings rate: 12% (2010 est.) Household Net Financial Assets and Gross debt: 5th

position (2011) (*)

Life insurance market 2012 : €53.649mln (2011: €59.381mln)

Fas channel: €11.134mln (2011: €8.001mln) Fas channel – classic unit linked only:

€7.005mln (2011:€2.130mln) Growth UL segment: +39% (YoY) Traditional segment: -21% (YoY)

Data at end of August 2012

Data: end of 2012

Italian Wealth : 8,6k B €

stalling from 2008 onwards due to the effects of the Economic crisis :

6k B € of Real Estate (inc. 84% of domestic homes)3,5k B € of Financial assets (inc. 19% of Insurance contracts)800 B € of Debt (inc. 42% real-estate loans)

Bottom 50% of Italian families hold 9,4% of Italian Wealth ...

Top 10% of Families hold 45,9% of Italian Wealth

Mass Market (<100k€) : severe outflows

Affluent (<1 m€) : / stable, contrasted savings

High Affluent (1-3 M €) : savings + contrasted revaluation of assets

Wealthy (> 3 M €) : in continuous expansion

Skandia Vita on the Italian landscape

provide a complete range of products, but not a real and continuous product innovation

exploiting different business models (captive networks, agreements or JV): they penetrate in all the networks with a tailor-made offer

potentially affected by conflicts of interests

strong brand awareness

TraditionalCompetition

unique and sophisticated product requiring a high-level advice and financial culture

operating model through distribution agreements thus maintaining an independent touch (i.e. such a model is quite unique on the market)

independence ensures no conflicts of interest

low brand awareness among end-clients, leverage on our partner’s brands

Skandia Vita

Italian Market: sales split per type and distribution channel (2011) (*)

(*) Source: IAMA

(**) Data are not referred to the whole Group, but only to the companies within each Group considered as direct competitors of Skandia, both for product range and distribution model

in Italy

Italian Company registered in 1997 Nr. of employees: 110 AuM: 4,5 bln/€ (2012) Nr. of clients: 52.500 Traditional Life : 0 %, UL : 100% UL market share: 8% UL Fas market share: 15%

From inception till 2001, our offer was focused on a very simple unit linked product (i.e. in-house funds wrapping bank bonds) distributed mainly through small/medium local banks

Since 2001 the first Fas partnerships have emerged and since then FAs have become the primary distribution channel

In 2005 the guided open architecture platform has been launched . Since then, dynamic investment solutions, requiring high-level financial culture and targeting mostly FAs networks have become our main and most successful Distribution Channel.

Skandia Vita business model: positioning evolution

guided architecture selected open architecture open architecture

Small – medium size banks, usually regional structured

Target customers: 75K to 100K Current AuM: 300 mln/€ Current nr. of Banks: 15

Financial advisors network Customers: 100K up to 1 mln Current nr. of Fas potentially able to sell

Skandia products: 12.000

Private Bankers Customers: over 1 mln Current AuM: 400 mln/€

Market structure and key factors of Success (Skandia)

How we operate:

We are not fund managers

We are fund selectors

We do not distribute directly

We distribute through agreements with high standing partners

3 types of partnerships:

1)Financial Advisors Networks

2)Retail Banking

3)Private Banking

Local independence

“Perceived” flexibility

“Low cost” innovation

Tailor-made solutions from a distributor’s perspective Freedom of choice

New investment proposal (funds and asset managers) New products features (Stop Loss and PPI)

Part of anInternational Group

Flexible

High-qualityProduct Provider

Strong Financial Expertise

Innovative

High-quality Service Provider

Efficient

Funds and asset managers’ election Regular monitoring on fund range

Insight reporting on our portfolio Dedicated infoline and extranet area

Additional features: Stop Loss and Dollar Cost Averaging Skandia Daily Trading

Implementation of automatic tools (front end) User friendly monitoring tools

Local presence Global capabilities

Fast Capturing market needs Quick products adjustments

Key success factors:

Banking groups

Retail banking

Privatebanking

FAs’network

AssetMgmt Insurance

Products’ factories

Bancassurance agreements

Exclusive agreements

Distribution channels

Sale

s st

ruct

ure

Complete range of products, but poor innovation Tailor –made solutions, for segments of clients through specif channels Affected by conficf of interests

Our model of business

Financial Advisors (Fas)

Not employees, but work on commission

Historically, FAs have been forced to promote in-house products, today they are pressing to offer third party products

In direct competition with Private Banks

Clients are loyal to their Fas not to the bank

Domestic market structure