1.
Ageas UK
Insurance Underwriting
& Claims
Mark Cliff
MD Ageas Insurance
Limited
INVESTOR DAY 2012
Investor Day 2012

2.
Profile
Underwriting excellence
Claims excellence
Conclusions

3.
Profile
Underwriting
 Technical excellence
 Data
 Anti-fraud management
Claims
 Process excellence = low
cost, high service
 Supply chain management
 Anti-fraud management
Investor Day 24-25 September 2012 | Andaz Liverpool Street London
2

4.
Profile
Key market positions
Private Motor
Household
GWP in £ mio
GWP in £ mio
Admiral
1,729
RBS
1,627
Aviva
Royal Bank Scot
967
Lloyds Banking Grp
963
Aviva plc
1,218
Liverpool Vic FS
1,034
RSA Ins Grp
Ageas
1,028
837
AXA
AXA
281
Nat Farmers
413
Zurich Fin Serv
283
Zurich Fin Serv
457
esure Hldgs
395
Legal&General
517
Co-operative
494
Ageas
616
RSA
565
Co-operative
300
195
163
Travel
GWP in £ mio
AXA
138
Aviva plc
91
Royal Bank Scot
84
Munich RE
76
Ageas
61
BUPA
31
AIG
28
ACE
25
Groupama
HDI Haftpflicht
16
7
Investor Day 24-25 September 2012 | Andaz Liverpool Street London
Source: Datamonitor
3

5.
Profile
Underwriting excellence
Claims excellence
Conclusions

6.
Underwriting excellence
Sustained improvement resulting from corrective measures
Combined ratio 2008 – 6M 12
102.6%
29.5%
108.1%
109.5%
99.9%
27.7%
98.8%
25.3%
25.8%
28.0%
73.1%
80.4%
81.5%
74.6%
73.0%
2008
2009
2010
2011
Following Motor market issues
in 2009 & extreme weather in
2010, we are now on an
improving trend.
6M 12
claims ratio
expense ratio
Investor Day 24-25 September 2012 | Andaz Liverpool Street London
5

7.
Underwriting excellence
Sustained improvement
Technical Excellence
Data
 Strong technical discipline
 Revamp of Motor & Household rating
structures
 Chartered status
 Strengthening of actuarial & pricing team
 Funded for extreme weather on
Household line
 AIL has a 10 bp advantage on Motor:
Combined ratio of 96% vs. 106% market
average
 Increased use of predictive external
sources
 Introduction of dynamic pricing starting
with credit scoring
 Utilisation of unique customer data, eg
Tesco & M&S clubcards
Anti-Fraud management
 Block, validate & reward
 Signed up to SIRA database
 Fraud investigation team working with
Insurance Fraud Bureau
 Claims Underwriting Exchange (CUE) at
point of sale
Investor Day 24-25 September 2012 | Andaz Liverpool Street London
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8.
Underwriting excellence
Motor performance better than market norms
Benchmarking of Individual Insurers
Total Market Overview 2011 Insurance
Benchmarking of Individual
 The largest insurer with a
106.1%
14
COR below 100%
Aviva
Insurance
 Outperforming vast
UKI
Gross Market Share 2011 (%)
Gross market share 2011 (%)
12
majority the market
10
RSA
Overall Ageas (TU and
Ageas combined)
8
AXA Insurance UK
Liverpool Victoria
6
4.6%
4
Allianz
CIS
esure
NFU Mutual
Highway
2
Travelers
Brit
0
140
130
Groupama
Provident
AIOI
Ecclesiastical
Chubb
Sabre
Tradex
MMA
USAA
120
110
Net combined ratio 2011 (%)
Prudential
100
90
80
Net Combined Ratio (%)
Source: Deloitte Analytics based on AM Best data
Investor Day 24-25 September 2012
| Andaz Liverpool Street London
7

9.
Profile
Underwriting excellence
Claims excellence
Conclusions

10.
Claims excellence
Sustained improvement
Process Excellence
Supply Chain Management
 The Ageas Way
 Innovative/quicker settlement
 Processes designed to deal with
customers predicament
 Identify new and upcoming providers or
independents
 Handled by employee closest to
customer
 Solution Centres – working closely with
small but more innovative repairers
 No call boards/IVR/offshoring
 Have our own overseas Assistance
Service
 As much dealt with in 1 call
 Efficient processes = low cost = high
service
Anti-Fraud management


Care flag system

Investor Day 24-25 September 2012 | Andaz Liverpool Street London
Every call handler trained to spot fraud
Supplemented by investigation team
9

11.
Claims excellence
Solution Centre Concept
Principles:
 Concentrate on customer service and desire to get car back quickly
 Disturb fabric of car as little as possible
 Increased repairer profitability – sustainability of supply chain
 Consume less
Results:
 Average key to key time now 6.3 days (market 12-14)
 Best 20 repairers consistently under 3 days. PMC 1.8 days
Investor Day 24-25 September 2012 | Andaz Liverpool Street London
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12.
Claims excellence
Ageas scores consistently highly vs. competitors on Service satisfaction
 Top 3 claims provider compared to market
 Ageas scores consistently highly vs
competitors on service satisfaction
 “World Class” status, Institute of
Customer Services
 Claims Innovation awards 2012
 Joint top for Personal lines Claims
Service, 1st for Personal lines Underwriting
Service - Insurance Age Sentiment Survey
May 2012
 Top for Personal lines E-trading Service
– Insurance Times ‘Broker Service Survey
– Personal lines’ 2011
Investor Day 24-25 September 2012 | Andaz Liverpool Street London
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13.
Claims excellence
Low cost: Operate at lowest level of cost
Incurred claims handling expense /net incurred claims
 Lowest unit costs of production in Motor
 One of the most efficient for claims
operations
Direct Line
Allianz
Aviva / Gresham
RSA
esure
NFU
Ageas
Co-Op
LV= / Highway
AXA
UK Market
Estimated Unit Cost Production (Private Motor 2011
8.9% 11.5%
8.0%
6.2%
6.2%
5.6%
5.4%
4.8%
4.8%
4.0%
7.4%
RBSI
Allianz
Co-Operative
LV=
Tradex
esure
Tesco…
Highway
RSA
Aviva
Groupama
Sabre
NFU
AXA
Ageas
91.
82.5
76.7
61.4
57.1
56.2
53.4
51.4
47.0
45.7
44.4
43.3
41.9
40.2
17.8
UK Non-Life…
63.1
Household claims mgmt costs / net incurred claims
 Ageas almost half that of UK
Market average
Direct Line
Aviva / Gresham
Lloyds TSB / St Andrews
Allianz
RSA
NFU
L&G
LV= / Highway
Ageas
Co-Op
Source: FSA 2010 returns and Ageas internal analysis
Figures concern Ageas Insurance Limited
Investor Day 24-25 September 2012 | Andaz Liverpool Street London
UK Market
11.2%
10.8%
10.1%
9.7%
9.3%
6.6%
5.9%
5.4%
4.6%
4.3%
9.0%
12

14.
Profile
Underwriting excellence
Claims excellence
Conclusions

15.
Conclusions
 Technical excellence in underwriting driven by people & processes
 Motor performance well above market norms
 Market leading reputation for service & claims innovation
 Delivered whilst maintaining low cost model
Investor Day 24-25 September 2012 | Andaz Liverpool Street London
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16.
Disclaimer
Certain of the statements contained herein are statements of
future expectations and other forward-looking statements
that are based on management's current views and
assumptions and involve known and unknown risks and
uncertainties that could cause actual results, performance or
events to differ materially from those expressed or implied in
such statements. Future actual results, performance or
events may differ materially from those in such statements
due to, without limitation, (i) general economic conditions,
including in particular economic conditions in Ageas’s core
markets, (ii) performance of financial markets, (iii) the
frequency and severity of insured loss events, (iv) mortality
and morbidity levels and trends, (v) persistency levels, (vi)
interest rate levels, (vii) currency exchange rates, (viii)
increasing levels of competition, (ix) changes in laws and
regulations, including monetary convergence and the
Economic and Monetary Union, (x) changes in the policies of
central banks and/or foreign governments and (xi) general
competitive factors, in each case on a global, regional and/or
national basis. In addition, the financial information
contained in this presentation, including the pro forma
information contained herein, is unaudited and is provided
for illustrative purposes only. It does not purport to be
indicative of what the actual results of operations or financial
condition of Ageas and its subsidiaries would have been had
these events occurred or transactions been consummated
on or as of the dates indicated, nor does it purport to be
indicative of the results of operations or financial condition
that may be achieved in the future.
Investor Day 24-25 September 2012 | Andaz Liverpool Street London
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