PwC Insurance: Bridging the expectation gap

European Insurance industry pre-tax income (all income/loss before any federal, state or local taxes)* Life

Aggregate pre-tax income (£000) Percentage change in aggregate pre tax income from 2007

2007

£21,455,292

2008

(£8,280,500) (138.6)%

2009

£7,573,508 (64.7)%

2010

£16,557,798 (22.8)%

2011

£11,795,394 (45.0)%

Total reduction in pre-tax income 2007-2011 (£000)

£9,659,898

Non-life

Aggregate pre-tax income (£000) Percentage change in aggregate pre tax income from 2007

2007

£38,229,990

2008

£17,600,101 (54.0)%

2009

£25,531,035 (33.2)%

2010

£27,082,854 (29.2)%

2011

£19,292,568 (49.5)%

Total reduction in pre-tax income 2007 - 2011 (£000)

£18,937,422 *Source: Thomson Reuters, Datastream. Analysis PwC The Datastream Worldscope (DW) datatypes are a set of Datastream Global Equity index and security valuation datatypes using Worldscope data. The data is based on a trailing twelve month period if applicable and represents the sum of the relevant item reported in the last twelve months. From the fiscal period 2002, the items are populated from the quarterly, semi-annual and trimester time series based on the availability of the underlying data. PwC

PwC Insurance: Bridging the expectation gap

European Insurance industry investor expectations and financial performance over time* Life

2005-2007* 2010-2012* Decline

Average annualised PE ratio Average annualised Return on Equity

11.6

7.5

(36%) 19.5

7.2

(63%)

Average annualised EBIT (£000)

£54,838,627 £25,200,310 (54%)

Average annualised net margin

4.8

2.8

(42%)

Non-Life

2005-2007*

Average annualised PE ratio

11.6

Average annualised Return on Equity

2010-2012* 11.4

Decline (1.4%) *Source: Thomson Reuters, Datastream. Analysis PwC 14.1

8.8

(37%)

Average annualised EBIT (£000) Average annualised net margin

£59,088,983 4.7

£46,035,347 (22%) 3.6

-24% The Datastream Worldscope (DW) datatypes are a set of Datastream Global Equity index and security valuation datatypes using Worldscope data. The data is based on a trailing twelve month period if applicable and represents the sum of the relevant item reported in the last twelve months. From the fiscal period 2002, the items are populated from the quarterly, semi-annual and trimester time series based on the availability of the underlying data. This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers LLP, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. © 2013 PricewaterhouseCoopers LLP. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers LLP (a limited liability partnership in the United Kingdom) which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.

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