Country industry and Skandia Vita in a nutshell

Country, industry and Skandia Vita in a nutshell Insurance industry 7% Italian Wealth : 8, 6 k B € stalling from 2008 onwards due to the effects of the Economic crisis : 2% 1% 25% 6 k B € of Real Estate (inc. 84% of domestic homes) 3, 5 k B € of Financial assets (inc. 19% of Insurance contracts) 800 B € of Debt (inc. 42% real-estate loans) 8% Pension products (PIP) 56% Ibrid TR+UL (Multiramo) Guaranteed UL § Population: 60, 6 mln § GDP: 2. 198 bln/$ (8 th position, list by IMF) -2. 4% (2012 est. ) § 2. 198 bln/$ (8 th 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: 5 th position (2011) (*) § Life insurance market 2012 : € 53. 649 mln (2011: € 59. 381 mln) § Fas channel: € 11. 134 mln (2011: € 8. 001 mln) § Fas channel – classic unit linked only: € 7. 005 mln (2011: € 2. 130 mln) § Growth UL segment: +39% (Yo. Y) § Traditional segment: -21% (Yo. Y) (*) Global Financial Stability Report, Arpil 2012, IFM Data: end of 2012 Classic UL Traditional Index-linked Data at end of August 2012 Bottom 50% of Italian families hold 9, 4% of Italian Wealth. . . Top 10% of Families hold 45, 9% of Italian Wealth § Mass Market (<100 k€) : 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 Italian Market: sales split per type and distribution channel (2011) (*) 80% 70% 60% 50% 40% 30% 20% 10% 0% Traditional Competition 45 53 25% Traditional and other Classic UL Fas banks agents in Italy § § § § Italian Company registered in 1997 Nr. of employees: 110 Au. M: 4, 5 bln/€ (2012) Nr. of clients: 52. 500 Traditional Life : 0 %, UL : 100% UL market share: 8% UL Fas market share: 15% Skandia Vita § provide a complete range of products, but not a real and continuous product innovation § unique and sophisticated product requiring a high-level advice and financial culture § exploiting different business models (captive networks, agreements or JV): they penetrate in all the networks with a tailor-made offer 2 75% § operating model through distribution agreements thus maintaining an independent touch (i. e. such a model is quite unique on the market) § potentially affected by conflicts of interests § independence ensures no conflicts of interest § strong brand awareness § low brand awareness among end-clients, leverage on our partner’s brands (*) 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

Skandia Vita business model: positioning evolution § 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 100 90 80 70 60 50 40 30 20 10 0 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 § Since 2001 the first Fas partnerships have emerged and since then FAs have become the primary distribution channel Agenti e brokers Banche Financial Advisor § Small – medium size banks, usually regional structured § Target customers: 75 K to 100 K § Current Au. M: 300 mln/€ § Current nr. of Banks: 15 guided architecture § 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. § Financial advisors network § Customers: 100 K up to 1 mln § Current nr. of Fas potentially able to sell Skandia products: 12. 000 selected open architecture § Private Bankers § Customers: over 1 mln § Current Au. M: 400 mln/€ open architecture

Market structure and key factors of Success (Skandia) Domestic market structure Our model of business Banking groups Sales structure Distribution channels Retail banking Private banking Products’ factories FAs’ network Bancassurance agreements Financial Advisors (Fas) Asset Mgmt Insurance Exclusive agreements § 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 § Complete range of products, but poor innovation § Tailor –made solutions, for segments of clients through specif channels § Clients are loyal to their Fas not to the bank § Affected by conficf of interests Part of an International Group § Local presence § Global capabilities How we operate: § We are not fund managers 3 types of partnerships: § We are fund selectors 1) Financial Advisors § We do not distribute directly § We distribute through agreements with high standing partners Networks 2) Retail Banking 3) Private Banking Key success factors: § Funds and asset managers’ election Strong Financial Expertise § Regular monitoring on fund range High-quality § Additional features: Stop Loss and Dollar Cost Averaging § Skandia Daily Trading Product Provider Flexible Fast High-quality Service Provider Efficient Innovative Local independence § Tailor-made solutions from a distributor’s perspective § Freedom of choice § Capturing market needs § Quick products adjustments “Perceived” flexibility § Insight reporting on our portfolio § Dedicated infoline and extranet area § Implementation of automatic tools (front end) § User friendly monitoring tools § New investment proposal (funds and asset managers) § New products features (Stop Loss and PPI) “Low cost” innovation