PowerPoint Presentation

Dr. Richeline C. Martina-Joe LLM34th Conference of the Insurance Association of the CaribbeanJune 2, 2014Curaao, Hilton Hotel

CHALLENGES AND OPPORTUNITIES FOR THE DUTCH CARIBBEAN INSURANCE INDUSTRY:The 4 C perspective

Shareholders expectations.

A map of the Dutch Caribbean insurance industry TerritoryPopulation x 1000Regulatory entityLife Insurance companiesP&C Insurance companiesOther licensed partiesIndependent insurance intermediariesCURAAO150CBCS1022 (19)12 funeral service insurers 15 pension funds 11 captives 2 government health schemes (AVBZ, BVZ)65 (44)SINT MAARTEN37CBCS10 (6)22 (14)2 pension funds 1 government health scheme (AVBZ)

65 (21)ARUBA110CBA7134 captives 11 company pension funds

21BES18DNB AFM CBCS71011 company pension funds293Business as usualTrigger of changeOpportunities!

* Decreased market share * Declining sales and/profits * Leadership: good-better-best

Missed Opportunities

* Shareholder interests * Priorities* Internal developments* Resources

Triggers of change from a 4 - C perspective

CustomerCompetitionCompliance Cost of doing business

TRIGGER OF CHANGE: CUSTOMER1980- 20002000-20102010 >Broker relation DependencyIncreased customer demands and awarenessBroker relation IndependencyCompany relation LoyaltyCompany relation Decreased loyaltyRetention HighRetention Decreased

TRIGGER OF CHANGE: COMPETITION1980- 20002000-20102010 >Pricing Gentleman Pricing Increased aggressivenessPricing fierce competitionMarket players Friendly competitor. Market regulation.Market players Newcomers.

Consolidation of intermediary market Market players Banc-assurance. Conglomerates. Market saturation Not an issueMarket saturation P&CMarket saturation P&C Group Life (Aruba)

TRIGGER OF CHANGE: COMPLIANCE1980- 20002000-20102010 >Legislation Motor AML Legislation Insurance tax Health Aruba AML/CTF Legislation Health BES Privacy FATCAInterest on life insurance products.Privacy legislationRegulator Insurance Ordinance Neth. Antilles 1990Regulator Insurance Ordinance Aruba. Broker Ordinance Neth. Antilles.Regulator Broker Ordinance Aruba . Reporting StandardsSolvency 2 ?

TRIGGER OF CHANGE: COST OF DOING BUSINESS -1-Strategic reorientation 1980- 20002000-20102010 >Ennia > OHRA > Delta Lloyd Amersfoortse > Ennia Alico > PALIG Ennia > Parman International Seguros Brouwer > Boogaard Group ING Fatum > Guardian GroupBritish American > NagicoPearl Insurance > TrestonInterassureIndustrial Alliance > SagicorRSA > FatumThoma Netherlands > Fatum

INDIVIDUAL LIFE & PENSIONS

Indiv. Life and PensionsISSUESOPPORTUNITIESCustomerNew Individual life business is channeled to banks through savings.Adverse reactions on unit linked products.LongevityBanc assuranceStrategic alliances

Indiv. Life and PensionsISSUESOPPORTUNITIESCompetitionDeclining interest rates.

Pension funds.

Employee benefit / actuarial consultants.Control over distribution channel.

Indiv. Life and PensionsISSUESOPPORTUNITIESComplianceCompulsory general pension scheme.Compulsory reporting of interests to tax authorities.Rise in retirement age.Increase in solvency margin requirementsMitigate the reputation and financial risk

Indiv. Life and PensionsISSUESOPPORTUNITIESCost of doing businessOver-solvencyLimited local investment opportunities

Fair value lossesFacilitate local investments opportunities

Flexibilization of the 60/40 investment rule

HEALTH

HealthISSUESOPPORTUNITIESCustomerLimited free choice for the customer.Niche productsRe-strategizeCompetitionSVB.Legally induced market decrease.Re-strategize

HealthISSUESOPPORTUNITIESComplianceStatus of nation healthcare schemes Re-strategizeCost of doing businessMarginal results.Non terminable policies.Shrinking portfolios.Re-strategize

PROPERTY AND CASUALTY

P&CISSUESOPPORTUNITIESCustomerDecreased company and broker loyalty.Economic developmentsAmplifying distribution channels vide the Dutch model.Customer convenience Online sellingCompetitionNew entrants pursuing growth strategies in a fairly saturated marketStrategic collaborations Mergers and acquisitions Market extensionCost leadership

P&CISSUESOPPORTUNITIESComplianceMotor third party pricing ordinanceIncrease of supervision costs with 300% (CBCS)Pricing Ordinances vs free enterprise .Alignment of the 4 Dutch Caribbean regulatory entitiesCost of doing businessActs of god Joan(1988)Luis (1995)Lenny (1999)Ivan (2004)Tomas (2010)EarthquakesIndustry collaborations Accident Road Services Fraud controlEfficiency optimization KISS principlesSmart Reinsurance

THANK YOU!nr 3TRIGGER OF CHANGE: CUSTOMERTRIGGERS OF CHANGE: THE 4-C PERSPECTIVE1980- 20002000-20102010 >Broker relation DependencyIncreased customer demands and awarenessBroker relation IndependencyCompany relation LoyaltyCompany relation Decreased loyaltyRetention HighRetention DecreasedTRIGGER OF CHANGE: COMPETITION1980- 20002000-20102010 >Pricing GentlemanPricing Increased aggressivenessPricing fierce competitionMarket players Friendly competitor. Market regulation.Market players Newcomers. Consolidation of intermediary marketMarket players Banc-assurance. Conglomerates.Market saturation Not an issueMarket saturation P&CMarket saturation P&C Group Life (Aruba)TRIGGER OF CHANGE: COMPLIANCE1980- 20002000-20102010 >Legislation MotorLegislation Motor Insurance tax Health Aruba AML/CTFLegislation Motor Health BES Privacy FATCARegulator Insurance Ordinance Neth. Antilles 1990.Regulator Insurance Ordinance Aruba 1999. Broker Ordinance Neth. Antilles 2003.Regulator Broker Ordinance Aruba 2014 Privacy Solvency 2 ?Parent companyParent companyParent company Increased reportingTRIGGER OF CHANGE: COST OF DOING BUSINESS1980- 20002000-20102010 >Strategic reorientation Ennia > OHRA > Delta LloydStrategic reorientation Amersfoortse > EnniaStrategic reorientation Alico > PALIGEnnia > Parman InternationalBoogaart > Seguros BrouwerING Fatum > Guardian GroupBritish American > NagicoPearl Insurance > TrestonInterassureIndustrial Alliance Insurance > SagicorFatum > RSAFatum > Thoma Netherlands Operat. Efficiency Ongoing optimization of processes and procedures through technologyOperat. Efficiency E-insurance initiativesStaffing Gentleman agreementStaffing Newcomer strategies. Resignation rate.Staffing Quality

nr 1aki bou tin SEIS diferente tabel. Kada un ta un powerpoint shet apart. Si bo por, Bo por a traha tambe un staaf diagram di kada un, I pone kada un apart den un powerpont sheet?INDIV LIFE AND PE NSIONS - NET PREMIUM (ANG/AWG in mio)20082009201020112012CURACAO SINT MAARTEN, BONAIRE SINT EUSTATIUS, SABA251.4171184.7222.4194.8ARUBA101.875.391.183.1114.7INDIV. LIFE AND PENSIONS - NET PREMIUM (ANG/AWG in mio)TOTAL353.2246.3275.8305.5309.5INDIV. LIFE&PENSIONS TerritoryNet Income20082009201020112012CURACAO SINT MAARTEN, BONAIRE SINT EUSTATIUS SABA20.718.630.424.856ARUBA10.125.910.822.419.8TOTAL30.844.541.247.275.8HEALTH TerritoryNet Premium (ANG/AWG in mio)20082009201020112012CURACAO SINT MAARTEN BONAIRE SINT EUSTATIUS SABA77.276.885.784.485.1ARUBAn.a.n.a.n.a.n.a.n.a.TOTAL77.276.885.784.485.1HEALTH TerritoryNet Income (ANG/AWG in mio)20082009201020112012CURACAO SINT MAARTEN BONAIRE SINT EUSTATIUS SABA-3.5-2.22.85.7-2.7ARUBAn.a.n.a.n.a.n.a.n.a.TOTAL-3.5-2.22.85.7-2.7P&C TerritoryNet Premium (ANG /AWG in mio)20082009201020112012CURACAO SINT MAARTEN BONAIRE SINT EUSTATIUS SABA202.4180.3177.9171.9171.6ARUBA61.768.470.669.874.6TOTAL264.1248.7248.5241.7246.2P&C TerritoryNet Income (ANG/AWG in mio)20082009201020112012CURACAO SINT MAARTEN BONAIRE SINT EUSTATIUS SABA9.625.215.727.528.1ARUBA2.7811.813.73TOTAL12.333.227.541.231.1

nr 1

CURACAO SINT MAARTEN, BONAIRE SINT EUSTATIUS, SABAARUBATOTAL

nr 2TerritoryPopulationRegulatory entityLife Insurance companiesP&C Insurance companiesOther licensed partiesIndependent insurance intermediariesCURAAO150,000Central Bank of Curaao and Sint Maarten1022 (19)12 funeral service insurers65 (44)15 pension funds11 captives2 government health schemes (AVBZ, BVZ)SINT MAARTEN37,000Central Bank of Curacao and Sint Maarten10 (6)22 (14)2 pension funds65 (21)1 government health scheme (AVBZ)ARUBA110,000Central Bank of Aruba7134 captives2111 company pension fundsBONAIRE ST. EUSTATIUS SABA (BES)18,000De Nederlandsche Bank71011 company pension funds29Authority for Financial MarketsCentral Bank of Curacao and Sint Maarten315,000

nr 3TRIGGER OF CHANGE: CUSTOMERTRIGGERS OF CHANGE: THE 4-C PERSPECTIVE1980- 20002000-20102010 >Broker relation DependencyIncreased customer demands and awarenessBroker relation IndependencyCompany relation LoyaltyCompany relation Decreased loyaltyRetention HighRetention DecreasedTRIGGER OF CHANGE: COMPETITION1980- 20002000-20102010 >Pricing GentlemanPricing Increased aggressivenessPricing fierce competitionMarket players Friendly competitor. Market regulation.Market players Newcomers. Consolidation of intermediary marketMarket players Banc-assurance. Conglomerates.Market saturation Not an issueMarket saturation P&CMarket saturation P&C Group Life (Aruba)TRIGGER OF CHANGE: COMPLIANCE1980- 20002000-20102010 >Legislation MotorLegislation Motor Insurance tax Health Aruba AML/CTFLegislation Motor Health BES Privacy FATCARegulator Insurance Ordinance Neth. Antilles 1990.Regulator Insurance Ordinance Aruba 1999. Broker Ordinance Neth. Antilles 2003.Regulator Broker Ordinance Aruba 2014 Privacy Solvency 2 ?Parent companyParent companyParent company Increased reportingTRIGGER OF CHANGE: COST OF DOING BUSINESS1980- 20002000-20102010 >Strategic reorientation Ennia > OHRA > Delta LloydStrategic reorientation Amersfoortse > EnniaStrategic reorientation Alico > PALIGEnnia > Parman InternationalBoogaart > Seguros BrouwerING Fatum > Guardian GroupBritish American > NagicoPearl Insurance > TrestonInterassureIndustrial Alliance Insurance > SagicorFatum > RSAFatum > Thoma Netherlands Operat. Efficiency Ongoing optimization of processes and procedures through technologyOperat. Efficiency E-insurance initiativesStaffing Gentleman agreementStaffing Newcomer strategies. Resignation rate.Staffing Quality

nr 1aki bou tin SEIS diferente tabel. Kada un ta un powerpoint shet apart. Si bo por, Bo por a traha tambe un staaf diagram di kada un, I pone kada un apart den un powerpont sheet?INDIV LIFE AND PE NSIONS - NET PREMIUM (ANG/AWG in mio)20082009201020112012CURACAO SINT MAARTEN, BONAIRE SINT EUSTATIUS, SABA251.4171184.7222.4194.8ARUBA101.875.391.183.1114.7INDIV LIFE AND PE NSIONS - NET PREMIUM (ANG/AWG in mio)TOTAL353.2246.3275.8305.5309.5INDIV. LIFE AND PENSIONS - NET INCOME (ANG/AWG in mio)INDIV LIFE AND PE NSIONS - NET INCOME (ANG/AWG in mio)20082009201020112012CURACAO SINT MAARTEN, BONAIRE SINT EUSTATIUS SABA20.718.630.424.856ARUBA10.125.910.822.419.8TOTAL30.844.541.247.275.8HEALTH TerritoryNet Premium (ANG/AWG in mio)20082009201020112012CURACAO SINT MAARTEN BONAIRE SINT EUSTATIUS SABA77.276.885.784.485.1ARUBAn.a.n.a.n.a.n.a.n.a.TOTAL77.276.885.784.485.1HEALTH TerritoryNet Income (ANG/AWG in mio)20082009201020112012CURACAO SINT MAARTEN BONAIRE SINT EUSTATIUS SABA-3.5-2.22.85.7-2.7ARUBAn.a.n.a.n.a.n.a.n.a.TOTAL-3.5-2.22.85.7-2.7P&C TerritoryNet Premium (ANG /AWG in mio)20082009201020112012CURACAO SINT MAARTEN BONAIRE SINT EUSTATIUS SABA202.4180.3177.9171.9171.6ARUBA61.768.470.669.874.6TOTAL264.1248.7248.5241.7246.2P&C TerritoryNet Income (ANG/AWG in mio)20082009201020112012CURACAO SINT MAARTEN BONAIRE SINT EUSTATIUS SABA9.625.215.727.528.1ARUBA2.7811.813.73TOTAL12.333.227.541.231.1

nr 1

CURACAO SINT MAARTEN, BONAIRE SINT EUSTATIUS SABAARUBATOTAL

nr 2TerritoryPopulationRegulatory entityLife Insurance companiesP&C Insurance companiesOther licensed partiesIndependent insurance intermediariesCURAAO150,000Central Bank of Curaao and Sint Maarten1022 (19)12 funeral service insurers65 (44)15 pension funds11 captives2 government health schemes (AVBZ, BVZ)SINT MAARTEN37,000Central Bank of Curacao and Sint Maarten10 (6)22 (14)2 pension funds65 (21)1 government health scheme (AVBZ)ARUBA110,000Central Bank of Aruba7134 captives2111 company pension fundsBONAIRE ST. EUSTATIUS SABA (BES)18,000De Nederlandsche Bank71011 company pension funds29Authority for Financial MarketsCentral Bank of Curacao and Sint Maarten315,000

nr 3TRIGGER OF CHANGE: CUSTOMERTRIGGERS OF CHANGE: THE 4-C PERSPECTIVE1980- 20002000-20102010 >Broker relation DependencyIncreased customer demands and awarenessBroker relation IndependencyCompany relation LoyaltyCompany relation Decreased loyaltyRetention HighRetention DecreasedTRIGGER OF CHANGE: COMPETITION1980- 20002000-20102010 >Pricing GentlemanPricing Increased aggressivenessPricing fierce competitionMarket players Friendly competitor. Market regulation.Market players Newcomers. Consolidation of intermediary marketMarket players Banc-assurance. Conglomerates.Market saturation Not an issueMarket saturation P&CMarket saturation P&C Group Life (Aruba)TRIGGER OF CHANGE: COMPLIANCE1980- 20002000-20102010 >Legislation MotorLegislation Motor Insurance tax Health Aruba AML/CTFLegislation Motor Health BES Privacy FATCARegulator Insurance Ordinance Neth. Antilles 1990.Regulator Insurance Ordinance Aruba 1999. Broker Ordinance Neth. Antilles 2003.Regulator Broker Ordinance Aruba 2014 Privacy Solvency 2 ?Parent companyParent companyParent company Increased reportingTRIGGER OF CHANGE: COST OF DOING BUSINESS1980- 20002000-20102010 >Strategic reorientation Ennia > OHRA > Delta LloydStrategic reorientation Amersfoortse > EnniaStrategic reorientation Alico > PALIGEnnia > Parman InternationalBoogaart > Seguros BrouwerING Fatum > Guardian GroupBritish American > NagicoPearl Insurance > TrestonInterassureIndustrial Alliance Insurance > SagicorFatum > RSAFatum > Thoma Netherlands Operat. Efficiency Ongoing optimization of processes and procedures through technologyOperat. Efficiency E-insurance initiativesStaffing Gentleman agreementStaffing Newcomer strategies. Resignation rate.Staffing Quality

nr 1HEALTH - NET PREMIUM (ANG/AWG in mio)20082009201020112012CURACAO SINT MAARTEN BONAIRE SINT EUSTATIUS SABA77.276.885.784.485.1ARUBAn.a.n.a.n.a.n.a.n.a.HEALTH - NET PREMIUM (ANG/AWG in mio)TOTAL77.276.885.784.485.1HEALTH - NET INCOME (ANG/AWG in mio)20082009201020112012CURACAO SINT MAARTEN BONAIRE SINT EUSTATIUS SABA-3.5-2.22.85.7-2.7ARUBAn.a.n.a.n.a.n.a.n.a.TOTAL-3.5-2.22.85.7-2.7P&C - NET PREMIUM (ANG/AWG in mio)20082009201020112012ARUBA61.768.470.669.874.6TOTAL61.768.470.669.874.6P&C - NET INCOME (ANG/AWG in mio)20082009201020112012CURACAO SINT MAARTEN BONAIRE SINT EUSTATIUS SABA9.625.215.727.528.1ARUBA2.7811.813.73TOTAL12.333.227.541.231.1

nr 1

CURACAO SINT MAARTEN BONAIRE SINT EUSTATIUS SABA

nr 2TerritoryPopulationRegulatory entityLife Insurance companiesP&C Insurance companiesOther licensed partiesIndependent insurance intermediariesCURAAO150,000Central Bank of Curaao and Sint Maarten1022 (19)12 funeral service insurers65 (44)15 pension funds11 captives2 government health schemes (AVBZ, BVZ)SINT MAARTEN37,000Central Bank of Curacao and Sint Maarten10 (6)22 (14)2 pension funds65 (21)1 government health scheme (AVBZ)ARUBA110,000Central Bank of Aruba7134 captives2111 company pension fundsBONAIRE ST. EUSTATIUS SABA (BES)18,000De Nederlandsche Bank71011 company pension funds29Authority for Financial MarketsCentral Bank of Curacao and Sint Maarten315,000

nr 3TRIGGER OF CHANGE: CUSTOMERTRIGGERS OF CHANGE: THE 4-C PERSPECTIVE1980- 20002000-20102010 >Broker relation DependencyIncreased customer demands and awarenessBroker relation IndependencyCompany relation LoyaltyCompany relation Decreased loyaltyRetention HighRetention DecreasedTRIGGER OF CHANGE: COMPETITION1980- 20002000-20102010 >Pricing GentlemanPricing Increased aggressivenessPricing fierce competitionMarket players Friendly competitor. Market regulation.Market players Newcomers. Consolidation of intermediary marketMarket players Banc-assurance. Conglomerates.Market saturation Not an issueMarket saturation P&CMarket saturation P&C Group Life (Aruba)TRIGGER OF CHANGE: COMPLIANCE1980- 20002000-20102010 >Legislation MotorLegislation Motor Insurance tax Health Aruba AML/CTFLegislation Motor Health BES Privacy FATCARegulator Insurance Ordinance Neth. Antilles 1990.Regulator Insurance Ordinance Aruba 1999. Broker Ordinance Neth. Antilles 2003.Regulator Broker Ordinance Aruba 2014 Privacy Solvency 2 ?Parent companyParent companyParent company Increased reportingTRIGGER OF CHANGE: COST OF DOING BUSINESS1980- 20002000-20102010 >Strategic reorientation Ennia > OHRA > Delta LloydStrategic reorientation Amersfoortse > EnniaStrategic reorientation Alico > PALIGEnnia > Parman InternationalBoogaart > Seguros BrouwerING Fatum > Guardian GroupBritish American > NagicoPearl Insurance > TrestonInterassureIndustrial Alliance Insurance > SagicorFatum > RSAFatum > Thoma Netherlands Operat. Efficiency Ongoing optimization of processes and procedures through technologyOperat. Efficiency E-insurance initiativesStaffing Gentleman agreementStaffing Newcomer strategies. Resignation rate.Staffing Quality

nr 1HEALTH - NET PREMIUM (ANG/AWG in mio)20082009201020112012CURACAO SINT MAARTEN BONAIRE SINT EUSTATIUS SABA77.276.885.784.485.1ARUBAn.a.n.a.n.a.n.a.n.a.HEALTH - NET INCOME (ANG/AWG in mio)TOTAL77.276.885.784.485.1HEALTH - NET INCOME (ANG/AWG in mio)20082009201020112012CURACAO SINT MAARTEN BONAIRE SINT EUSTATIUS SABA-3.5-2.22.85.7-2.7ARUBAn.a.n.a.n.a.n.a.n.a.TOTAL-3.5-2.22.85.7-2.7P&C - NET PREMIUM (ANG/AWG in mio)20082009201020112012CURACAO SINT MAARTEN BONAIRE SINT EUSTATIUS SABA202.4180.3177.9171.9171.6ARUBA61.768.470.669.874.6TOTAL264.1248.7248.5241.7246.2P&C - NET INCOME (ANG/AWG in mio)20082009201020112012CURACAO SINT MAARTEN BONAIRE SINT EUSTATIUS SABA9.625.215.727.528.1ARUBA2.7811.813.73TOTAL12.333.227.541.231.1

nr 1

CURACAO SINT MAARTEN BONAIRE SINT EUSTATIUS SABA

nr 2TerritoryPopulationRegulatory entityLife Insurance companiesP&C Insurance companiesOther licensed partiesIndependent insurance intermediariesCURAAO150,000Central Bank of Curaao and Sint Maarten1022 (19)12 funeral service insurers65 (44)15 pension funds11 captives2 government health schemes (AVBZ, BVZ)SINT MAARTEN37,000Central Bank of Curacao and Sint Maarten10 (6)22 (14)2 pension funds65 (21)1 government health scheme (AVBZ)ARUBA110,000Central Bank of Aruba7134 captives2111 company pension fundsBONAIRE ST. EUSTATIUS SABA (BES)18,000De Nederlandsche Bank71011 company pension funds29Authority for Financial MarketsCentral Bank of Curacao and Sint Maarten315,000

nr 3TRIGGER OF CHANGE: CUSTOMERTRIGGERS OF CHANGE: THE 4-C PERSPECTIVE1980- 20002000-20102010 >Broker relation DependencyIncreased customer demands and awarenessBroker relation IndependencyCompany relation LoyaltyCompany relation Decreased loyaltyRetention HighRetention DecreasedTRIGGER OF CHANGE: COMPETITION1980- 20002000-20102010 >Pricing GentlemanPricing Increased aggressivenessPricing fierce competitionMarket players Friendly competitor. Market regulation.Market players Newcomers. Consolidation of intermediary marketMarket players Banc-assurance. Conglomerates.Market saturation Not an issueMarket saturation P&CMarket saturation P&C Group Life (Aruba)TRIGGER OF CHANGE: COMPLIANCE1980- 20002000-20102010 >Legislation MotorLegislation Motor Insurance tax Health Aruba AML/CTFLegislation Motor Health BES Privacy FATCARegulator Insurance Ordinance Neth. Antilles 1990.Regulator Insurance Ordinance Aruba 1999. Broker Ordinance Neth. Antilles 2003.Regulator Broker Ordinance Aruba 2014 Privacy Solvency 2 ?Parent companyParent companyParent company Increased reportingTRIGGER OF CHANGE: COST OF DOING BUSINESS1980- 20002000-20102010 >Strategic reorientation Ennia > OHRA > Delta LloydStrategic reorientation Amersfoortse > EnniaStrategic reorientation Alico > PALIGEnnia > Parman InternationalBoogaart > Seguros BrouwerING Fatum > Guardian GroupBritish American > NagicoPearl Insurance > TrestonInterassureIndustrial Alliance Insurance > SagicorFatum > RSAFatum > Thoma Netherlands Operat. Efficiency Ongoing optimization of processes and procedures through technologyOperat. Efficiency E-insurance initiativesStaffing Gentleman agreementStaffing Newcomer strategies. Resignation rate.Staffing Quality

nr 1HEALTH - NET PREMIUM (ANG/AWG in mio)20082009201020112012CURACAO SINT MAARTEN BONAIRE SINT EUSTATIUS SABA77.276.885.784.485.1ARUBAn.a.n.a.n.a.n.a.n.a.P&C - NET PREMIUM (ANG/AWG in mio)TOTAL77.276.885.784.485.1HEALTH - NET INCOME (ANG/AWG in mio)20082009201020112012CURACAO SINT MAARTEN BONAIRE SINT EUSTATIUS SABA-3.5-2.22.85.7-2.7ARUBAn.a.n.a.n.a.n.a.n.a.TOTAL-3.5-2.22.85.7-2.7P&C - NET PREMIUM (ANG/AWG in mio)20082009201020112012CURACAO SINT MAARTEN BONAIRE SINT EUSTATIUS SABA202.4180.3177.9171.9171.6ARUBA61.768.470.669.874.6TOTAL264.1248.7248.5241.7246.2P&C - NET INCOME (ANG/AWG in mio)20082009201020112012CURACAO SINT MAARTEN BONAIRE SINT EUSTATIUS SABA9.625.215.727.528.1ARUBA2.7811.813.73TOTAL12.333.227.541.231.1

nr 1

CURACAO SINT MAARTEN BONAIRE SINT EUSTATIUS SABAARUBATOTAL

nr 2TerritoryPopulationRegulatory entityLife Insurance companiesP&C Insurance companiesOther licensed partiesIndependent insurance intermediariesCURAAO150,000Central Bank of Curaao and Sint Maarten1022 (19)12 funeral service insurers65 (44)15 pension funds11 captives2 government health schemes (AVBZ, BVZ)SINT MAARTEN37,000Central Bank of Curacao and Sint Maarten10 (6)22 (14)2 pension funds65 (21)1 government health scheme (AVBZ)ARUBA110,000Central Bank of Aruba7134 captives2111 company pension fundsBONAIRE ST. EUSTATIUS SABA (BES)18,000De Nederlandsche Bank71011 company pension funds29Authority for Financial MarketsCentral Bank of Curacao and Sint Maarten315,000

nr 3TRIGGER OF CHANGE: CUSTOMERTRIGGERS OF CHANGE: THE 4-C PERSPECTIVE1980- 20002000-20102010 >Broker relation DependencyIncreased customer demands and awarenessBroker relation IndependencyCompany relation LoyaltyCompany relation Decreased loyaltyRetention HighRetention DecreasedTRIGGER OF CHANGE: COMPETITION1980- 20002000-20102010 >Pricing GentlemanPricing Increased aggressivenessPricing fierce competitionMarket players Friendly competitor. Market regulation.Market players Newcomers. Consolidation of intermediary marketMarket players Banc-assurance. Conglomerates.Market saturation Not an issueMarket saturation P&CMarket saturation P&C Group Life (Aruba)TRIGGER OF CHANGE: COMPLIANCE1980- 20002000-20102010 >Legislation MotorLegislation Motor Insurance tax Health Aruba AML/CTFLegislation Motor Health BES Privacy FATCARegulator Insurance Ordinance Neth. Antilles 1990.Regulator Insurance Ordinance Aruba 1999. Broker Ordinance Neth. Antilles 2003.Regulator Broker Ordinance Aruba 2014 Privacy Solvency 2 ?Parent companyParent companyParent company Increased reportingTRIGGER OF CHANGE: COST OF DOING BUSINESS1980- 20002000-20102010 >Strategic reorientation Ennia > OHRA > Delta LloydStrategic reorientation Amersfoortse > EnniaStrategic reorientation Alico > PALIGEnnia > Parman InternationalBoogaart > Seguros BrouwerING Fatum > Guardian GroupBritish American > NagicoPearl Insurance > TrestonInterassureIndustrial Alliance Insurance > SagicorFatum > RSAFatum > Thoma Netherlands Operat. Efficiency Ongoing optimization of processes and procedures through technologyOperat. Efficiency E-insurance initiativesStaffing Gentleman agreementStaffing Newcomer strategies. Resignation rate.Staffing Quality

nr 1HEALTH - NET PREMIUM (ANG/AWG in mio)20082009201020112012CURACAO SINT MAARTEN BONAIRE SINT EUSTATIUS SABA77.276.885.784.485.1ARUBAn.a.n.a.n.a.n.a.n.a.TOTAL77.276.885.784.485.1HEALTH - NET INCOME (ANG/AWG in mio)20082009201020112012CURACAO SINT MAARTEN BONAIRE SINT EUSTATIUS SABA-3.5-2.22.85.7-2.7ARUBAn.a.n.a.n.a.n.a.n.a.TOTAL-3.5-2.22.85.7-2.7P&C - NET PREMIUM (ANG/AWG in mio)20082009201020112012P&C - NET INCOME (ANG/AWG in mio)CURACAO SINT MAARTEN BONAIRE SINT EUSTATIUS SABA202.4180.3177.9171.9171.6P&C - NET INCOME (ANG/AWG in mio)ARUBA61.768.470.669.874.6TOTAL264.1248.7248.5241.7246.2P&C - NET INCOME (ANG/AWG in mio)20082009201020112012CURACAO SINT MAARTEN BONAIRE SINT EUSTATIUS SABA9.625.215.727.528.1ARUBA2.7811.813.73TOTAL12.333.227.541.231.1

nr 1

CURACAO SINT MAARTEN BONAIRE SINT EUSTATIUS SABAARUBATOTAL

nr 2TerritoryPopulationRegulatory entityLife Insurance companiesP&C Insurance companiesOther licensed partiesIndependent insurance intermediariesCURAAO150,000Central Bank of Curaao and Sint Maarten1022 (19)12 funeral service insurers65 (44)15 pension funds11 captives2 government health schemes (AVBZ, BVZ)SINT MAARTEN37,000Central Bank of Curacao and Sint Maarten10 (6)22 (14)2 pension funds65 (21)1 government health scheme (AVBZ)ARUBA110,000Central Bank of Aruba7134 captives2111 company pension fundsBONAIRE ST. EUSTATIUS SABA (BES)18,000De Nederlandsche Bank71011 company pension funds29Authority for Financial MarketsCentral Bank of Curacao and Sint Maarten315,000