Admiral Group

European Investor Day
Rome 17th September 2018

15th August 2018

Introduction
David Stevens, Group CEO

European Insurance Market Distribution and Price Comparison
Elena Bétes, European and Emerging Markets Price Comparison Websites CEO

Milena Mondini, European Insurance CEO

European Insurance Part 2: Admiral Model and Future
Milena Mondini, European Insurance CEO
Antonio Bagetta, ConTe Head of operations
Daniele Tamborrelli, ConTe Technical Director

Lunch
ConTe
Costantino Moretti, ConTe CEO

Office Tour and Break
Admiral Seguros
Sarah Harris, Admiral Seguros CEO

L’olivierPascal Gonzalvez , L’olivier CEO

Wrap-upMilena Mondini, European Insurance CEO

Q&A

15th August 2018

AgendaEuropean Insurance Part 1: Market and Results

Introduction
David Stevens – Group CEO

Strategy Reminder

Ensure Admiralremains one of thebest insurers in the UK

Demonstrate that
Admiral can be a great
insurer beyond the UK

Develop sources ofgrowth and profit
beyond insurance

Serve more customers

Exploit strengths andadapt locally

Exploit strengths

Know your customer
betterFocus on existing
countries

Keep customers longer(and happier)Accelerate channel
switchTest relevant products(e.g. Loans)4Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

Strategy Reminder
TV Spend by PCW Market in France1

Demonstrate that
Admiral can be a great
insurer beyond the UK
Exploit strengths andadapt locally

€ 9.2

€ 1.0

H1 2012

H1 2018

Focus on existing
countries
Accelerate channel
switchSources: 1) Management estimate, TV spend excludes sponsorships

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

Transformed the Price
Comparison market

5Strategy Reminder

Demonstrate that
Admiral can be a great
insurer beyond the UK2017 Private Car Insurance Market GWP (bn)1

Exploit strengths andadapt locally
Focus on existing
countries€ 21.3€ 14.8€ 16.1€ 10.9Accelerate channel
switchSpain

UK

Sources: 1) Internal estimation based on Ania, FFA, Inese, ICEA, ABI, management estimates. Notes: UK figures converted based on 31 Dec 2017 FX (1,124);

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

Italy

France6Strategy Reminder

Demonstrate that
Admiral can be a great
insurer beyond the UK2017 Private Car Insurance Market GWP (bn)1

Exploit strengths andadapt locally
Focus on existing
countries
Accelerate channel
switch€ 204.8€ 63.1

Total European & UK
Markets Admiral
Operates In

Sources: 1) Internal estimation based on Ania, FFA, Inese, ICEA, ABI, S&P Global Market and management estimates Notes: US figures converted based on
average 2017 FX (0.8867);

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

United States

7Strategy Reminder

Demonstrate that
Admiral can be a great
insurer beyond the UK

Two way street:• People• Intellectual
Property

Exploit strengths andadapt locally
Focus on existing
countries
Accelerate channel
switch8Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

Strategy Reminder

Demonstrate that
Admiral can be a great
insurer beyond the UK
Exploit strengths andadapt locally
Focus on existing
countries
Accelerate channel
switchH1 2018 Margin – 1.5%
Profitable despite:• Sub-optimal scale• Major headwinds ofhigher cost of growth

Admiral cumulative investment
per vehicle: €891

Strong management teamNotes: 1) Cumulative P&L per policy (sum of P&L since inception of all European operations, divided by current number of policies in portfolio)

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 20189

European Insurance Market Distribution and Price
Comparison Websites
Elena Bétes – European and Emerging Markets Price
Comparison Websites CEO

The Market

The Market

11
Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

European Car Insurance Overview
Estimated motor market GWP in 20171 (€bn)
Traditional
9.6
14.4
20.7

44.7

vs

DirectPrice Comparison share of New
Business Sales (%)1

1.3

13%

1.7

14%

0.6

10%

3.6

7.1

7.7

Sources: 1) Internal estimation based on Ania, FFA, Inese, ICEA, ABI, Deloitte Motor seminar, management estimates; 2) Management estimates.
Notes: UK figures converted based on 31 Dec 2017 FX (1,124); Criteria used by national authorities to range size of respective markets may be sensiblyinconsistent; all Spanish data excludes Mutua Madrilena (inclusion in the direct channel disputed due to its hybrid business model)

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

73%

12

Multiple players, few leaders
…2002

04

Market Leader

06

08

10

12

Exited the Market

14

16

18

Owned by insurer
13

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

Admiral PCW Strategy and
Deployment in Spain and France
Admiral Price Comparison
Websites in Spain and France

14
Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

Ambition to Lead – Our Past
 Only a few players will survive per country A strong position fuelled by growth is key
 Admiral manages a leading PCW in all markets we are present in

Prompted brand awareness

95%

79%

Top of mind brand awareness

55%

15%

Admiral PCW Market share

65%

40%

Competitors Market share

Acierto (30%), Kelisto (5%)

Les Furets (40%), MeilleurTaux
(10%)
15

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

Diversification – Our Present Expansion of product offering: Compensate low speed of change in market behaviour
 Increase frequency of use
 Maximise effectiveness of marketing budget

Other insurance products

Motorbike, home, health, life,
travel, burial…

Motorbike, health, home

Other business lines developed
in-house

Broadband, Finance andCar

EnergyOther offerings provided by 3rdparties on the web

Travel and Energy

Finance and other insurance

Percentage of revenue fromproducts beyond car insurance

24%

40%

YoY Growth1 (Aug 2018)

7%

20%

Notes: 1) Year on year growth of revenue from products other than car insurance

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 201816

Best Customer Proposition – Our Future Opportunity to improve customer experience and increase control in fulfilment
 Requires technological investment that can be transferred across markets

Aggregator Model

Price
Page

Hybrid Model

Price
Page

Broker Model

Price
Page

Lead

Provider

Lead

ProviderSale fulfilment

Sale fulfilment

17
Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

Our History – Reflected in Our Financials

Rastreator and LeLynx Combined
Profit Before Tax (€m)

Rastreator and LeLynx Combined Turnover (€m)

4.4
39.4

3.1

25.2

29.5

31.3

2.0

1.6

1.5

-1.0
21.4

4.4

25.5

26.1

0.5
2011

3.2

-0.2

14.3

2010

3.1

22.7

25.6

2009

2.8

2012

2013

2014

2015

2016

2017

2018

2009

-4.1

-4.4

2010

2011

2012

2013

2014

2015

2016

2017

18
Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 20182018

Summary
Market remains small with opportunity to grow with the shift towards
digitalAdmiral has proven its ability to organically grow market leading PCWs in
Spain and France

Focus on maintaining leadership in European PCW markets bydiversifying and strengthening the customer proposition

19
Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

European Insurance Part 1: Market and Results
Milena Mondini – European Insurance CEO

Home town

FamilyAdmiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

ConTe 10 year party

Insurance

Admiral expansion across Europe

Price Comparison

Oct 06

Mar 08

May 08Life and non-life insurance
Utilities
Financial services
TravelBroadband
Car buying and selling

Jan 10Dec 10Mar 13Motor insurance
Health insurance
Household insurance
Utilities

Note: Admiral also launched two operations which were subsequently sold – Admiral Direkt (direct insurance) launched in Germany in 2007 and Chiarezza(price comparison) launched in 2010

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 201821

Admiral expansion across Europe

2006

2008

2010

22
Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

European Insurance Snapshot: H1 20181

Turnover2
+17%
15%

€187m
2017 HY: €160m

Profit3

Customers

xx%
+18%

925k

+€9m

2017 HY: 783k

€3m
2017 HY: €-6m

1200+ employees4

Note: 1) Admiral operations in Italy, France and Spain; 2) Turnover comprises total premiums written plus other revenue; 3) Admiral share of profit; 4)calculated as the sum of the FTEs in the three operations – this calculation does not take into account outsourcing

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 201823

European markets are large, with the direct channel lessdeveloped than in the UK
Estimated motor market GWP in 20171 (€bn)
Traditional
9.6
14.4
20.7

44.7

vs

DirectEstimated Admiral shareof direct market2 (%)

1.3

6%

1.7

9%

0.6

10%

3.5

7.1

8%
7.7

20%

10 years from launch(2003) = 12%

Sources: 1) Internal estimate based on Ania, FFA, Inese, ICEA, ABI, Deloitte Motor seminar, management estimates; 2) Internal estimate of Admiral share of direct market
Notes: UK figures converted based on 31 Dec 2017 FX (1,124); Criteria used by national authorities to range size of respective markets may be sensibly inconsistent; all Spanish data
excludes Mutua Madrilena (inclusion in the direct channel disputed due to its hybrid business model)

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 201824

Steady but moderate growth of the direct market over time
Share of direct in motor insurance (%)1
2000

2010

2017

4%

10%

12%

1%

6%

10%

2%

2%

3%

2%

6%

7%

29%

50%

60%2



Spain shows the largest direct share, withseveral examples of hybrid distribution
models e.g. several traditional also
distribute onlineItaly benefitted from the fastest growthfrom 2010 (c. 6% CAGR)France is at an earlier stage of development

Favourable trends observed in H1 2018,
particularly in Italy and France

Sources: 1) Internal estimate based on Ania, FFA, Inese, ICEA, ABI, Deloitte Motor seminar data; management estimates 2) Management estimates
Notes: all Spanish data excludes Mutua Madrilena (inclusion in the direct channel disputed due to its hybrid business model)

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 201825

Admiral growth outpaces the market

Admiral Premium Growth in Europe : 2015-2017 (%)1
126%


62%

59%

Each of the Admiral operations has been
growing faster than their respective markets
from 2015 to 2017

30%

4%

SP

IT

FR

Total SP Total
Admiral European
Europe markets2

Sources: 1) internal estimation based on Ania, FFA, Inese, ICEA, ABI, Deloitte Motor seminar data
Notes: all Spanish data excludes Mutua Madrilena (inclusion in the direct channel disputed due to its hybrid business model); 2) calculated as
cumulated premium growth of direct market in Italy, Spain and France between 2015 and 2017

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 201826

European Markets have diverse features
European Market Overview1

Acquisition

Acquisition
cost
Market average
persistency
Market averagepremium

Underwriting

Market risk
segment variance
Fraud frequency

ClaimsMarket claims
frequency
Market averageclaim costMarkets share similarities but require adaptation to specific market context

Different competences are more relevant in each country, for example:

Italy: Underwriting and antifraud sophistication is key

Spain and France: Higher acquisition costs drive focus on efficient customer acquisition

Sources: 1) Internal estimation based on Ania, FFA, Inese, ICEA, ABI, Deloitte Motor seminar data;

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 201827

European Market Features: The Cycle
Market Average Premium trends1(Indexed to 100 in 2005)
130

120



Sharp downturn in average market
premium in Italy and Spain over thelast few years (c. 20%)100Upward trend in the UK while morestable premiums in France90

Italy and UK with more pronounced
cyclicality

110

80

70
2005

2007

2009

2011

2013

2015

2017

Sources: 1) Internal estimation based on Ania L'Assicurazione Italiana 2017-2018; FFA (FFA tableau de bord assurance), ICEA, DGS data.

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 201828

European Market Features: Profitability
Market Combined Ratio trends1

120%

110%

100%



Italy has seen the sharpest cycle of
all the European markets



In France motor business was
historically more cross-subsidised byother profit sources

90%

80%
2005

2007

2009

2011

2013

2015

2017

Sources: 1) Internal estimation based on data from Ania (L'Assicurazione Italiana); FFA (FFA tableau de bord assurance); INESE (insurance companies report); Deloitte (Motor
Seminar); EY
Note: Italian market data calculated considering MTPL + MOT

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 201829

Scale matters but there are opportunities to outperform
Comparison of main Direct Players in 2017 (Premiums (€m) vs Combined Ratio)1
150%
Italy
140%

Spain

Combined Ratio

130%

France120%

Admiral

110%
100%
90%
80%

70%
0

100

200

300
400
500
Gross Written Premiums

Sources: 1) Admiral data on written basis; direct competitors: internal estimation based on Infobila; Inese; FFA data.
Notes: Data for illustration purposes only, basis for calculation of market data may vary across countries and data sources

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

600

700

800

30

Value of European policies is concentrated on the renewal
book…
Split of lifetime value between year 1 andsubsequent years1
French and Spanish policies are more reliant on
renewal book, mostly due to persistency andacquisition costs



Cost of growth is higher in Spain and France,
where new business represents -48% and -24%of the overall lifetime value of a policyIn Italy, there is a lower distribution of lifetime
value between new business and renewal years,
hence lower cost of growth

100%

89%

124%



148%

11%

0%

-24%
-48%

New Business
2
L'Olivier renewal years
ConTe
CumulativeAS

Notes: 1) “Lifetime value” is the sum of variable items (revenues and cost) related to a portfolio policy – i.e. all fixed costs are excluded; 2) Cumulative
renewal years is the variable profit per policy (taking into account the effect of persistency) excluding the NB year

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 201831

…and total lifetime value per policy is growing year after
year
Lifetime value1 of a policy: 2016 vs 2018
(Indexed to 100 in 2016)

143

133
100

2016

100

2018

2016

100

2018

Notes: 1) “Lifetime value” is the sum of variable items (revenues and cost) related to a new business policy – i.e. all fixed costs are excluded

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

2016

118

2018

32

Continued and strong top-line growth in Europe

European customers

European turnover (€m)
187

925k
160

783k
126

608k

2016 H1

2017 H1

2018 H1

2016 H1

2017 H1

2018 H1

33
Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

Sustainable loss ratio
Admiral European projected ultimate loss ratio1

Admiral European ultimate loss ratio development2
2013

82%

82%

86%86%
83%
78%
75%

2016

2017

2013

84%
81%
79%
75%

2014

2014

2015

2016

2017

82%
81%
80%

84%
82%

82%

80%
75%

75%

2013

2014

2015

2015

2016



Admiral EU ultimate loss ratio remained stable over the last three years on a written basis, despitematerial book growthContinued prudent reserving approach with positive development of booked loss ratio2013 and 2014 have been exceptional years in the Italian market; increase in 2015 driven byworsening cycle and acceleration of growthUltimate loss ratios in the graph are not fully comparable to the market as they do not include
ancillaries, which generally have a lower loss ratio

Sources: 1) Blend of ConTe, L’olivier and Admiral Seguros ultimate loss ratios based on Independent actuarial projection, underwriting year basis 2) Blend of ConTe, L’olivier andAdmiral Seguros ultimate loss ratios based on Independent actuarial projection, underwriting year basis; development by financial year (colour coded) and split by underwriting year
Notes: Motor loss ratio; Ancillaries are excluded from calculations

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

2017

34

Expense ratio improving due to efficiencies and scale
Admiral European expense ratio1

39%
38%

38%

40%

33%

2013



2014

2015

2016

2017

31%

2018 H1

Admiral European businesses significantly improving ER trendsGrowing scale

Increased share of online servicesInternal efficiencies and cost optimisation

Sources: 1) Average of whole account ConTe, L’Olivier and Admiral Seguros expense ratios calculated as written expenses /turnover net of XoL

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 201835

European operations are profitable overall
Admiral European losses1 (€m) …
2015

2016

… and profit1 (€m)

2017

2018 H1
3

2015

2016

2017
2018 H1
-2

-5

-10



ConTe profitable for the 4th year

Minor losses from L’olivier and Admiral Seguros combinedReserve released in all three countries

Notes: 1) Admiral share of earned P&L

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 201836

Growth and profitability drives value creation
Admiral share of profit or loss per policy (€)
2012

2013

2014

2015

2016

2017

2018 H1

10
-10
-20
-30
-40
-50
-60



925k policies across Admiral Europe, with a cumulated average investment per policy to date of €891



Improving share of profit/loss per policy and growing lifetime value per policy drives value creation

Notes: 1) Cumulative Profit and loss divided by active policy base as of HY 2018

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 201837

Summary

Direct channel has been growing at a moderate pace over the past few
years

European businesses largely outgrowing their respective markets andachieving material top-line growth

European operations overall profitable, showing a consistent trend of
improvement

38
Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

European Insurance 2: Admiral Model in Europe
Milena Mondini – CEO European Insurance
Antonio Bagetta – Head of operations, ConTe
Daniele Tamborrelli – Technical Director, ConTe

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

Admiral competitive advantage in the UK … and overseas

A Efficient direct acquisition

B Sophisticated and accurate pricing
C

Effective claims handling

D Low cost structure
E

Customer focus

F

People and Culture

40
Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

Efficient direct acquisition: Customer acquisition supported
by brand trust
Brand Awareness (%)
Admiral brands
2015

2018

Direct Market
average 2018

Top direct
Player 2018

Direct Media Spending3 benchmark
Annual Average 2015-17 (€M)

6,2

40%1

62%1

55%2

49,5

51%4

61%4

64%4

2,6

2,2

2,2

0,6

0,5

0,6

0,3

2,5

2,5

1,5

1,6

1,0

82%1

39,9
13,8

93%4

10,6

3%5

36%6

38%6

69%6

3,8

1,2

0,5



Our brand awareness in Europe has grown to market standards

Positive word of mouth and very selective investments on media and partnership led the growth,without large-scale spendingSpanish and French acquisition costs are higher as the whole market spends more

1) Aided, source Nextplora, target 70% M 30% W; 25-54 years old; 33% direct, 33% traditional, 33% mixed; 2) Direct Line excluded, Verti included; 3) Perimeter of comparable spending includes internal estimateson TV, radio, press and online brand, excludes online performance and price comparison. Sorces: Nielsen (Italy), Mpanel-YouGov (France) and Infoadex-Kantar (Spain). IFrance data refer to 2016-17 only; 4)
Source: Netquest, online survey 1000 respondents, Men and Women, 18/55 years old, Car owner with driving licence, in charge of car insurance purchase, August 2018; 5) Aided, source: Mpanel - survey over 600
respondents, 4 times a year. Target 25-49 yrs old; 6) Aided, source : YouGov panel - online panel with over 150:000 respondents, July 2018 - 600 interviews. Target 16-65 yrs old

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 201841

Efficient direct acquisition: Price comparison% of Direct sales intermediated by PCW: Admiral vs market1
64%

67%

64%
48%
33%

#RIF!

#RIF!

#RIF!

#RIF!

#RIF!

#RIF!

#RIF!

#RIF!

#RIF!

#RIF!

#RIF!

#RIF!

30%



Price comparison is efficient, costs are 20 to 50% lowerSucceeding in price comparison requires accurate pricing segmentation and competitiveness

High focus on non-standard risks, which tend to be over-represented on price comparison websites

Source: 1) 2017 figures, management estimates based on FFA, Ania, Inese, internal data

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 201842

Sophisticated and accurate pricing: Solid loss ratio
performance in Europe
ConTe ultimate projected Loss ratio1 compared to direct market2
MTPL + MOD premiums
82%

82%

79%
77%

77%

80%

79%

76%
65%

2013

64%

2014

2015
ConTe

2016

2017

Market

Loss Ratio advantage in Italian direct market; close to market level in Spain and France

Recent underwriting years are projected with prudence; we expect decreases

Business size contributes to loss ratio as more data allows more accurate pricing



Renewals book will age and contribute to future year loss ratio improvement

Source: 1) ConTe external projection as of H1 2018, written basis, MTPL+MOD; 2) Average published results of direct competitors, written basis, source ANIA-Infobila,
MTPL+MOD. 2017 is a management estimate. Adjusted to account for cost of handling claims (-4 p.p)

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 201843

Sophisticated and accurate pricing: Loss ratio in Europe is
not only pricing
Spain example

Product

Geo-localisation tools against“Ghost” brokers

Claims

Antifraud
IT-Data

Call
Centerquality

Pricing
Underwriting
Telematics

Italy example
Internally developed
antifraud tool andvalidation team against
fake claims

Air Plastic bag

France example
Use of web automation tocheck insurance history
declaration against «quotemassaging»

Antifraud, Underwriting and Claims tailored to environment, with a twist of Admiral innovative spiritIT / Data / Telematics are growing opportunities, we are investing in internal skills, Guidewire andAmazon Cloud

Pricing capability is enhanced by solid technical and technological foundations
44

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

Sophisticated and accurate pricing: A focused team is key tobuild an advantage
Many CEOs havepricing background

Pricing has a role inevery important
decision

Technical expertise
but also business andcommon sense talentInternational
cooperation,communication,exchange

Large teams

Pricing in Admiral is central to decision making and most of our CEOs have a pricing background

Our teams are substantially larger than the average of our competitionInternational pricing team in Cardiff to support local business in developing its own advantage
45

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

Sophisticated and accurate pricing: Mindset is also key
Open-minded approach

Fast Evolution

Price comparison footprint1

Number of rate changes per year (range min - max)
per individual operation vs market

81%

71%

82%
61%

25 - 50AdmiralSegurosTop
4 directAvg
Top4
directplayers
marketL'olivier

Spain

min

Top
directTop44 direct
players
marketAdmiral EU

Culture to try provide a quote to every riskAccurate pricing on “non standard risks” e.g.
“Previous Claims” or “No prior insurance”

Decision-making attitude balancing solid
analysis and common sense

3-20

max
min

Francemax

Direct market sample

Continuous stream of improvement projects,
going live as soon as ready (we can do daily ratechanges)

Direct players are active, but not all of them

Source: 1) Itelligent for Rastrator, Spain, Lelynx for France

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 201846

Sophisticated and accurate pricing: With the right pricing
strategy, data is central

Many Data Sources
Access as a first
mover

Smart use withbusiness focus andtechnical expertiseHigh Data Quality
Team mix oftechnical andbusiness skills

Culture of data
value

Technology

Some examples:Telematics box data flowsVehicle new technical details (e.g. Active
Security)

Actuaries, data analysts, tech experts as well as MBAs
from top business schools in pricing teamInsurance and driving history databases(e.g. past claims and convictions) at
granular level

Culture of easy access to every database to foster new
insight generation

Amazon cloud, SAS/R/Python, Domino Data science
platform, Guidewire rating software

Fraud portal integrations

Customer interactions online

47
Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

Effective claims handling: Europe is very diverse from aclaims perspective
Average third party liability claims costsby market

Main differences

60%

CustomersPercentage of fraudulent
claimsPercentage of claims
where a counterparty
lawyer has been
instructed

RegulationKnock for knock withsignificant differencesamong EU countries

High
40%

ConTe (3)Market AVG

Medium20%

Direct Line
Genertel
Genialloyd
LinearLow
0%

Zuritel0Liability limit

200

400

Unlimited 6M€

600

800

Unlimited 70M€

Products
High variety in terms oflimits

Source: Internal estimation based on Ania, FFA, Inese, ICEA, ABI, Deloitte Motor seminar data;

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 201848

Effective claims handling: Europe is very diverse from aclaims perspective
Example of large claim cost by market (€m)1~ 17

ILLUSTRATIVE
Large BI
Fatal

~6
0,5-1

1,5-2

~3

~3
~1

0,5-1

UK

Italy

FranceSpain

TPL Market Frequency2

6%

6%

4%

8%

Fraud
(% of claims opened)

0-1%

3-5%

0-1%

~1%

France with the highest large BI costs in Europe also due to PPO mechanism
Spain with highest claims frequency and therefore the need for more standardised processes
Italy more advanced on fraud detection and management
Source: 1) European transport safety council 2015 report, Internal estimate. - Example of tetraplegia lesion on 1 male, 41 years old, salary € 40.000; 1 wife, 2sons (6 and 9 years old), 1 parent and 1 sister. 2) TPL market frequency includes body injuries and accidental damage

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 201849

Effective claims handling: Admiral European operations benefitingfrom group competitive advantages

Competitive advantage

Examples

Claims Organisation centralised in the 3
HQs and highly specialised

580k€ ANIA incentive in Italy
Positive Knock for Knock balance due topositive fault / no fault claims ratio and goodnegotiation skills in Italy and SpainCulture of control and partnership withthird parties

Cooperation and partnership with network
Strong focus in terms of percentage of claims
handled by garage networkAnti-fraud excellence

ConTe achieved 2.3 point Loss Ratio saving vs
1.5 market average1



Quality of serviceLikelihood to renew after a claim above 80%2

Fast, proactive and customer-oriented
processes

24h assistance in case of claims in Italy
Cash & Go for small damages in Spain (below
500€)
Path towards automation of processes via
robotics and digitalisation in France

Source: 1) IVASS; calculated as point of Loss ratio saved due to anti-fraud detection activities. Calculated only on Zero paid claims 2) internal surveys; for
Italy only including customers who received garage network services

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 201850

Effective claims handling: Admiral EU claim cost compared tothe market
Average Claims costs vs market1(indexed, 2017, UK not included)
100

87

EU Market

EU AdmiralAdmiral European operations has higher proportion of new business customers than market averageGiven this difference, Admiral Europe is already experiencing signs of competitive advantages in claims, inparticular in ConTe and Admiral Seguros - where data is more mature

Source: ANIA for Italy, estimate based on ICEA (Association of Insurance Companies) data in Spain, internal data
Note: 1) Estimate includes only Italy, France and Spain operations. Average cost for the market calculated with the same volume mix of the 3 Admiral companies. For France, considered only
material damage given the lower maturity of the portfolio. For Italy calculated on current and prior year only to be comparable with ANIA data (99% of total claims in ConTe.it).

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 201851

Low cost structure: Expense ratio improving over time
Europe Written Expense ratio1

Productivity: Active policies per FTE
+10%
CAGR

-5 p.p.

745

615

38%
33%

2015

2017

2015

2017
Other key 2017 metrics(index, 2015 basis)
Non Acquisition Cost per Policy
Cost per saleExpense ratio higher than market for each operation, but improving due to higher productivity,
increasing scale and lower cost per sale

Sources: 1) Average of whole account ConTe, L’Olivier and Admiral Seguros expense ratios calculated as written expenses /turnover net of XoL

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

52

87
90

Low cost structure: Efficiency improving across all operations
Turnover and costs, YoY change(written basis, 2017 vs 2016)1
Turnover YoY change

Scale effect in the Italian direct market(2017 data2)

Costs YoY change

43%

Expenses (% of Turnover)50%
40%

ConTe 3(3)

30%

23%

Market average

20%

14%

Genertel
Genialloyd

12%
5%

Verti

Linear10%

Zuritel

0%

-4%





Turnover grew more than costs in eachindividual market generating expense reduction
ConTe.it experienced a cost reduction althougha double digit turnover growth

0





400

600

800 Turnover(€M)

Scale matters: bigger size and maturity leading
lower incidence of fixed costs
YoY, Admiral EU benefited from 3ppt expense
reduction due to higher scale ConTe.it aligned to market average

Sources: 1)internal data ; 2) Infobila, ConTe.it internal data, management estimate; 3) Expense ratio adjusted for consistency

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

200

53

Low cost structure: ER reduction led by a few strategic pillars
Key pillars
Process optimisation

Fast, customer-oriented digital processes

Continuous process review to answer
customer needs

CultureExamplesPersonal area with self service
features and easy access to
information (e.g. dynamic FAQs on
website and IVR1)
From ~40% online closure in 2015
to 60%+ in 2018 in Italy
From dedicated to multi-skilled
agents both in Italy and Spain

Flat organisation & entrepreneurial
approach
My company my money

All employees own shares

Culture of control and effective suppliermanagement
Notes: 1) Interactive Voice Response (IVR) refers to automated technology for a telephony system that gathers information from callers and uses thisdata to route the calls to the appropriate recipient.

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 201854

Customer focus: Customers and Quality

A few examples

Admiral Experience

Customers are key for our development and success…

…Focus on quality as an enabler to move customers from traditional channel…

…as a result all our operations have good scores in terms of Customer Satisfaction



Excellent call centre service
with an average answer in lessthan a minuteMoney back guarantee in caseof poor service in a market
where quality is not a givenAssistance in case of claim 24h
a day; offer the longest
opening hours
Constantly increase thenumber of self-service online
functionalities
55

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

People and Culture: Key Success Factors
Italy #3•

Management with a mix of managerial and insurance
experience•

Focus on developing talent•

External recruiting of senior roles adding to technicaland market experience

France #38

Our pillars
A few examples

Spain #4

COMMUNICATION

Annual Staff General Meeting
Constant team meetings and 121s

REWARD & RECOGNITION



FUN

EQUALITYManagers on the phone and continuous
listening
Friendly staff forums, Focus groups

Special Programs for Talent
Incentives Schemes and contests

Target and record celebrations
Ministry of Fun

56
Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

EU organisational chart

Milena Mondini
European Insurance CEO

SarahHarrisAdmiral Seguros

Costantino
Moretti
ConTe.it

PascalGonzalvez
L’olivier

Christophe
Sanchez
EUIGS

European operations’ CEOs

Notes: 1) AECS is Admiral’s new Spanish insurance company that will underwrite policies in France, Italy and Spain.

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

Elisa
De BlasAECS1

AndreaTamborrelli
EU central

Heads of EU central functions

57

Brexit project progressing as planned
Brexit project update in a nutshell

1

A new insurance company and intermediary have been established andlicensed in Spain

2

The project is progressing as planned and we will be ready to operate
post-Brexit after the UK has left the EU (also in a scenario of hard
Brexit)1

Minimal impact on customers and internal organisation whilst ensuring
legal and regulatory requirements are met

2

Maintain strong governance and increase cross-European
collaboration

Expected outcome

58
Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

Learnings in Europe: Technological evolution

BeforeEvolution and current structure• Limited investments in internal automation
and IT internal processes

1• Shared technology centre (EUIGS) based in Spain
enabling integrated technology functions, ITdecisions and synergies• Some duplication of technology
investments/not maximizing efficiencies andIT value• Several platforms and technologies/not
homogenous architecture

2• Increase technology capacity and talent (EUIGS
headcount growing by c. 50% in 2 years)
3• Adoption of modern platforms and technologies:
Guidewire, Cloud, Big Data, Machine Learning
4• Applying best practices from tech leaders:
DevOps, Site Reliability
59

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

Admiral Europe: What’s next?

5. Data and technology ascompetitive advantages• Cloud strategy• Data strategy• EUIGS transformation

4. Lean organisation• Outsourcing• Automation /robotics• Self-provisioning

1. Cutting-edge UW• Antifraud competence
centre• Analytics competence
centre• Pricing innovation…customers
want!

2. Exploration of newsources of growth• Hybrid channel• Alternative directacquisition

3. Focused & agile product innovation• InnoLab• Ring-fencing resources• Lean methodology
60
Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

A view on the future

Admiral European losses1 (€) …

2015

2016

2017

… and profit1 (€)

2016

By 2022, we aim to deliver profit/year in
the range of € 30-60m on a written wholeaccount basis assuming normal market
conditions



As of today, Admiral share of wholeaccount profit is sensibly lower than in
the UK (e.g. ConTe taking around 35-40%
share of profit2)

As profit becomes more material we
expect this ratio to improve materially

2018
H1
3

2015



2017
-2

2018 H1-5-10

Notes: 1) Admiral share of profit . 2) As a result of share of risk with re-insurers

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 201861

Drivers for future profitability

1

Continued sustainable growth2

Channel diversification and optimisation

3

Consolidate loss ratio advantage

4

Increase “revenue per user” through ancillaries and other business
opportunities

62
Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

Summary

Admiral core competitive advantages exported to Europe

European insurers benefiting from accelerated growth and economies ofscale

Aim to deliver material profit in the medium term

63
Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

ConTeCostantino Moretti - CEO

ConTe Fun

ConTe’s First Birthday

FamilyThe Market

The Market

65
Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

Italian Market
Whole Market Ratios (Third Party Liability)1
Loss Ratio

Expense Ratio

20,1

108% 106%
103%
19%

18%

88%

91%

94%

98%

97%

18%

20%

21%

22%

22%

21%

74%

69%

70%

72%

76%

76%

2012

2013

2014

2015

2016

2017

93%
18%

89%

87%

85%

2009

2010

2011

Combiend ratio

Market Premium (Third party Liability andMotor Own Damage) (€bn)2

2009

19,9

2010

20,7

2011

20,2

2012

18,7

2013

17,6

2014

16,7

16,2

16,0

2015

2016

2017

New Cars Registered (m)3
2,16
1,96



Large, profitable marketMarket turnover declined by c. 23% since 2012, due tolower average premiumsPotential signs of positive shift - new car registrations
growing since 2014

1,83

1,75
1,40

2009

2010

2011

2012

Source: 1) ANIA:LASSICURAZIONE-ITALIANA-2017-2018 . 2) Internal estimate based on ANIA: LASSICURAZIONE-ITALIANA-2017-2018. 3) UNRAE
Annnual report 2017

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

1,97

1,58

1,30

1,36

2013

2014

2015

2016

2017

66

Market Competitive Landscape
Whole Market GWP1 2017

Direct Market GWP1 2017

Distribution Channel
Split1 2017
Others 4%

11%

Top 5
DirectMarket share
20171

Genialloyd

3,6%

6,1%

Verti

2,3%

-5,4%

GENERALI

Genertel

2,0%

2,0%

Rest of the Market

ConTe

0,93%2

23%2

Linear

0,92%

16%

Total
DirectMarket
marketTot Direct
43%

23%

UNIPOLSAIALLIANZ

12%10%Growth(17 v 16)1

Internet&Phone 8%

Brokers 16%

Agents 73%

Highly concentrated market



Direct market doubled in the last 7 years but growth was lower than expectedPrice Comparison growing (c. 14% of Market New Business3)



Car Insurance is the dominant line of P&C business (c. 50% of GWP1)

Source: 1) Internal estimate based on ANIA: LASSICURAZIONE-ITALIANA-2017-2018. 2) Internal data. 3): Internal estimate.
Note: 1) Includes MTPL (Motor Third Party Liability) and MOD(Motor Own Damage)

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 201867

Main Direct Competitors
Genialloyd






Largest player
Launched in 1996
Part of Allianz Group
Profitable
Multi-brand: GenialClick (100% on-line),
Genial+ (physical intermediaries)

Verti







Prima

Hybrid models







Youngest player in the market
Online agency
c. 250k active customers2
Low premium focus

2nd largest player
Launched in 2002
Rebranded as Verti in 2018 (was Direct Line)
Part of Mapfre Group from 2015
Significant losses in the last 2 years
The Aided Brand Awareness of the new
brand is below 17%1



Source: 1) Nexplora for ConTe. 2)Prima.it website.

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

Big groups showed an appetite to increase
synergies in distribution strategy
Few Direct Brands are testing physicalintermediaries to distribute their products
An opportunity to enlarge the Direct Market
but also a need to adapt the operating
model

68

Market characteristics
Regulatory changes
Motor Third Party Liability compulsory product, only
15% of Motor Own Damage1
 Insurers obliged to quote for 100% of risks
Claims handling is complex
 High bodily injury claims frequency ±17%1
 Fraud Higher use of Solicitors
 Late reporting of claims
Very high Telematics penetration - above 15%2
Price Comparison distribution is growing2
 Dominated by Facile.it and Segugio.it (jointlyc. 90% market share)

IDD and local new measures should increase
efficiency and transparency, reduce claims costs
and fraud: Digitalisation of documents and processes(self-service) Black box (telematics) promotion
 New IVASS3 Anti-Fraud common database New small BI guidelines on payment
 Regulatory focus to improve transparency
and comparison
Overall, good opportunities to increase thewillingness of customers to shop online

Source: 1) ANIA annual report 2017, represents total incidence of BI claims on the total claims handled. 2) Internal estimate. (3) IVASS: Istituto per laVigilanza sulle Assicurazioni (Insurance Supervision Institute)

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

69

The Market

ConTe

70
Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

ConTe Business Performance: Historic evolution
Turnover (€m)

Customers
170

500k

139
110

2013

102

107

2014

2015

2016

415k

2017

280k

285k

2013

2014

Expense Ratio1

315k

2015

31%

2013

83%

35%

81%
65%

30%

2014

2015

2016

2017

Ultimate Loss Ratio2
ULR first projection

35%

2016

27%

27%

2017

2018 H12013

ULR latest projection

81%

80%

79% 79%

64%

2014

2015

Source: 1) Whole account expense ratio on a written basis including ancillaries. 2)Whole account written ULR based on external actuarial LR projections
Note: ratios are not market comparable

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

82%
76%

2016

2017

71

ConTe in a nutshell1.

Efficient growth over time sustained by a well recognised Brand

2.

Customer centric organisation

3.

Robust and reliable Loss Ratio position

4.

Gaining efficiencies whilst maintaining good customer service

5.

Leading Telematics player in the Direct Market

72
Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

ConTe in a nutshell73
Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

1) Efficient growth over time sustained by a well recognised brand
Aided Brand Awareness 1

ConTe share of TV/Radio spending vsgrowth rate2

100%

32%

80%

64%

62%

54%

60%

20%

40%

17%

40%

11%

19,4%

20%

11,4%
6,1%

9,8%

0%
2015

2016

2017

H1 2018

2015

2016
ConTe APB's Growth YOY

ConTe
Direct Line
Zurich Connect

Genialloyd
Verti
Quixa

2017

H1 2018

ConTe Share of Spending

GenertelLinearPrima.it



ConTe Brand Awareness in line with competitors with room for further improvementGood correlation between Brand Awareness and improvement of top line performance

Material investment in 2016



Efficient growth achieved by ConTe in flat/decreasing market



H1 decrease impacted by temporary lower media spending linked to efficient acquisition cost

Source: 1) Nextplora: research center. 2) Estimation by Wave maker media agency based on Nielson

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018742) Customer centric organisation

Customer centricity means: interactivity, speed, execution
Customers are engaged to develop new products and features

Customer needs and behaviours change rapidly, we need to respond quickly

Execution means deliver value to the end users as soon as possible

ConTe is embracing innovative operating models that effectively respond to those requests (Agile, DevOps)
75

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

3) Robust and Reliable Loss Ratio position
ConTe booked loss ratio development1

94%

71%

73%

68%

2012

81%
77%

80%

69%

67%

2013

92%

90%

87%

82%

83%

93%

93%

90%

89%

2014
2014

2015

2015
2016

2016

2017

2017

The Loss Ratio of each underwriting year positively evolving over time

Prudent claims reserving approach
Positive evolution of Claims KPIs over time

Notes: 1) ConTe booked loss ratio development by financial year (colour coded) and split by underwriting year. Ancillaries are excluded from calculations

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018763) Robust and Reliable Loss Ratio position2017 Loss Ratio1 ranking by direct company

104%
93%

93%

97%

Linear(Unipol)

Genertel(Generali)

83%

ConTe

Genialloyd(Allianz)

Verti(Direct Line)

ConTe has a clear Loss Ratio advantage, despite strong growth Effective Pricing
 Advanced Antifraud solutions (ConTe achieved 2.3 point Loss Ratio saving vs 1.5 market average2)
 Focus on Claims handling: full internal control of claims network, technical specialisation of handlers,
quality audit

Source: 1) ANIA data from http://www.infobila.ania.it. Calendar MTPL LR 2) Internal elaboration of IVASS annual report on Frauds
Note: External Actuary Estimation adjusted with claims handling cost to be comparable with the market

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018774) Gaining efficiencies whilst maintaining good customer service
Expense Ratio decrease has been achieved due to:Indexed reduction of Operational Costs per PolicyPositive scale effectEfficiency and digitalisation programme:
1.

Telephony System improved2.

IT platform modernisation

3.

Lean and Agile culture

4.

Digital User Experience revised

5.

Self-service and automation

33%

11%
100%

56%

2015

Operational
Efficiencies/Scale

Digitalimprovements

Maintaining a focus on good service

Low cost cultureHigh Net Promoter Score

Spending review contest

Good on-line reputation (social, review websites)Group purchasing synergies

2018

78
Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

5) Leading Telematics player in the Direct Market
Allows better risk selection and growth in higher risk geographies

c. 20% ConTe New Business sales are Telematics, slightly higher than Market (c. 15%)1

Telematics business is profitable

Very valuable tool to reduce claims costsContinued evolution and innovation of product: from a flat discount model launched in 2009 towards moreinteractive and customised productFuture opportunities: More value-added services for customers and data enrichment of claims handlingprocess

The Customer point of viewThree reasons to BUY:

Two reasons to NOT BUY:

1.

Claims assistance1.

If he/she is a fraudster

2.

Anti-theft capabilities

2.

Some people prefer not to share data

3.

Anti-fraud protection

Source: 1) Internal data

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 201879

Business Performance: Telematics antifraud example

Customer reports anaccident involving 3 vehicles

A very expensive claim!

Different location!

The accident occurredin a very busy street in
NaplesEngine off!

Location was a garage!

Accident never happened
and the damage wascaused with a hammer!
80

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

What we’ve learned: Underwriting risk
2008 - 20102011 onwards

Adverse selection
False payments

Robust LR

Personal Identity frauds
Geographical false declaration

Rating structure not optimised
Low use of external data
Antifraud tools not in placeMore data points and mature portfolio
Solid underwriting processes
Technology enhancements
81

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

What we’ve learned: Risk selection examples
2

1 Customer declares to live in a geographicalarea where the insurance cost is low

Province of Cremona
Initials: CR

Customer providing a manipulated postal ticket
receipt of payment to get the policy issued
without paying the correct amount
Postal ticket receipt

Province of Crotone
Initials: KR

82
Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

The four pillars of our sustainable growth strategy

LOSS RATIO advantage

GROWTH Pricing & advanced
analytics
 Investment in data
 Claims tech skills

EFFICIENCYChampions incustomer service
and convenience

Digital investments
Process automation
Robotics

Competitive prices
Product evolution
Customer loyalty
Innovation Lab

PEOPLE• Great Place to Work• Talent recruitment &development
• Fun

83
Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

Summary
ConTe is a profitable Operation with solid foundations in a competitive
MarketLoss Ratio is the key competitive advantage built over time

ConTe will pursue a sustainable growth strategy based on four pillars:
Loss Ratio, as growth and profit lever
Efficiency
Product enhancement and services improvements
A talented and motivated Team84
Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

Admiral Seguros
Sarah Harris – CEO

2018

2015

The Market

86
Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

Spanish market: Stable context
Gross Written Premium (€bn)
12,1

11,7

Market Combined Ratio
LR

11,5

11,3

10,6

10,0

9,9

10,1

10,6

10,9

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

ER

95%

99% 100% 97%

98%

99% 100% 101% 102% 98%

20%

20%

20%

19%

20%

22%

22%

22%

23%

22%

75%

79%

80%

78%

78%

77%

77%

79%

80%

76%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

New Car sales (m)
24%

13%

8%

19%

1,2

1,0

1,0

0,8

0,7

0,7

0,9

1,1

1,2

1,3



A sizeable market (€10.9bn)

Economic recovery and the new claims
Baremo have led to a return to growth

Ratios stable despite a 20% fall in premiumfrom 2008 to 20142008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Source: ICEA, INESE and Public Information

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 201887

Direct Market – c. 12% of total premiumMarket share by company

2017 FY

Market Share(17 vs 16)

TOP 5 TRADITIONAL
MAPFRE

Other Direct;
6%
Línea Directa;
6,4%
Mutua
Madrileña;
10%

Traditional (78%)
Direct (22%)

ALLIANZ
AXA

GENERALI
REALE
TOTAL

Mapfre; 19%

TOP 5 DIRECT(excluding Admiral)

Allianz; 13%
Other
Traditional;
38,4%

54%

4,2%

(17 vs 16)

2,8%

16%

7,1%
5,8%
-0,3%

4,1%
5,6%

Banks Offices

46%




Non-intermediatedPremium
Growth

2,7%

0,76%

TOTAL

Brokers

Market Share

1,4%

ADMIRAL

FENIX (Allianz)

Agents3,8%4,4%TOTAL (excluding Mutua Madrileña)

DIRECT (Axa)
VERTI (Mapfre)

Online Other

3,9%

-6,3%

LINEA DIRECTA (Bankinter)

Market share by distribution channel

19,3%
13,1%
6,8%
4,9%
4,8%
48,9%

9,9%
6,4%
1,8%
0,6%
0,6%
19,2%
9,4%

MUTUA MADRILEÑA

Axa; 7%

Premium
Growth

Traditional

Source: ICEA and internal management estimates, market share by company based on 2017 numbers

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

Direct share c. 12% (excluding Mutua Madrileña)
of the total market, growing slowly over time
Presence of both Direct and Traditional players
in non-intermediated channels
88Main competitors high level profile
Mutua Madrileña

 Hybrid model, 3rd in Spanish Market
 Very loyal portfolio with strong presence in Madrid and inhigh premium segments
 Auto (core), home, health, life and asset management
 Digital transformation and high media investment

Linea Directa
 Launched in 1995, 100% owned by Bankinter Large and profitable Auto (core), home, expanding to health Aggressive commercial strategy with a high media
investment & brand awareness Sophisticated pricing and analytics

Direct Seguros

Verti Owned by Mapfre (Spanish market leader) Owned by Axa Group Still small market share Second of the direct players, focused on Auto Auto (core), home and pet Competitive pricing with strong focus on data

 Leverages Mapfre’s structure and capabilities to develop
its offering Investment lower than the larger competitors with brandimage focused on efficiency and simplicity

 Intense media presence, highlighting pricecompetitivenessSource: Public information and company disclosures

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 201889

Market characteristics

Low premium

Claims Baremo change







Claims cost constrained by regulatory environment(Knock for Knock, Baremo)Long-term trend of frequency reduction,
accentuated during the economic crisis

High acquisition cost

Large Loss ratio differences between NB andrenewal; culture of NB discounts
Acquisition expenses unusually high comparedother countries (high marketing spend)







Baremo system regulatescompensation for bodily injury cases
Changes in 2016:
 Increased compensation in largeBI
Low premium Small BI more difficult to claim
Impact of the change has beenmoderate: Targeted premium increases
 Greater reduction than
expected in small BI
Uncertainty remains as large BI cases
are still working through the courts

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Admiral Seguros

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Business Performance: Historic evolution
Turnover (€m)

Customers
73
224k

62
54

189k

55

48

164k

161k

2014

2015

137k

2013

2014

2015

2016

2017

2013

Expense Ratio1

2016

2017

Ultimate Loss Ratio2
ULR first projection

ULR latest projection

51%

87% 89%

42%

42%

38%
33%

2013

2014

2015

2016

2017

96% 94%
84% 84%

91%
79%

89% 88%35%2018 H1

2013

2014

2015

Source: 1) Whole account expense ratio on a written basis including ancillaries. 2)Whole account written ULR based on external actuarial LR projections
Note: ratios are not market comparable

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

2016

2017

92

Learnings: Branding

Launch date: 2006



Launch date: 2013

Brand Awareness peak: 72% (2012)

Brand Awareness: 61%



Brand Confidence Index: 10,3%

Brand Confidence Index: 34,3%

Sales (2017)
22%
22%
22%

Balumba

78%
78%
78%

Qualitas

Source: 1) Internal figures, 2) Infoadex and Brandtracker for brand indexes

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Our path to success

4. Innovative

2. Lean &Customer-centric

1. Loss Ratio
Excellence

3. Outperformanceon pricecomparison

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Loss Ratio advantage

Admiral Seguros pricing ability - loss ratio
76%

Market 2017

Estimated
NB 20%
RN 80%

76%

71-73%



Admiral Seguros Ultimate Loss Ratio1 isalready close to market level

When adjusted for the weight of New
Business vs Renewal we estimate a market
comparable loss ratio advantage of 3-5
pointsAdmiral Seguros ultimate Admiral Seguros adjusted
market comparable
ultimate market
comparable

NB 42%
RN 58%

NB 20%
RN 80%

Source: Internal figures and ICEA data 2) Analysis based on the 2016-17 underwriting years.

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 201895

Loss Ratio Excellence: Risk Selection

Pricing- Granularity of risk selection- Investment in talentdevelopment

Data/Analytics- EU Centre of excellence- Investment in platformgovernance

Underwriting/
Antifraud- More than 200
underwriting rules- European antifraud system

External Databases- Strong pipeline of new
databases- Enrichment of existingsources
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Lean and Customer-Centric: Continuous Improvement
Acquisition cost

Customer self-service

New Business: Variable Cost per Sale

2013



2014

2015

2016



Efficiency and customer experience
improvements

Investing in digitalisation of post-sale processes

2017

Growing more efficiently throughcontinuous reduction in acquisition costand first year handling cost

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Outperformance on Price Comparison
Admiral Seguros Click to Sale
Evolution on Price Comparison

2014



2015

2016

2017

Click to Sale vs Rastreator Average

2018H1

Admiral Seguros

Rastreator

Growing more efficiently through better conversion of available leads

Source: Internal management estimates, Rastreator data

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 201898

Innovation: Test and Learn Culture
New channels
Direct marketing quotes

New direct traffic acquisition(display, affiliates, social)
Testing other channels (partnershipand intermediated)


+38%

2015

+52%

2016

+23%

2017

2018 Reforecast

New products
Motorbike & Vans

Telematics

Multicar“Comprehensive
Collision”

99
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Summary
Stable market context

Strong growth in the last two years withincreased market share

Generating value through differentiation:
 Loss ratio excellence Lean and Customer-centric Outperformance on price comparison
 Innovation

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L’olivier assurance auto
Pascal Gonzalvez - CEO2009 Sabbatical…

2018
2010 L’olivier pre-launch
Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

The Market

The Market

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French Market: Motor insurance market landscapeMarket Combined Ratio

Gross Written Premium (€bn)
21.3

25%

26%

26%

30%

28%

29%

28%

30%
19.5

19.7

20.1

20.4

20.7

18.9
81%

77%

75%

73%

76%

74%

77%

73%

2010

2011

2012

2013

2014

2015

2016

2017 (p)Loss ratio

2010

2011

2012

Expense ratio

Big and highly competitive marketMarket cycle is not too volatile with pricemovements +/-3% max historically



18.3

New regulations have the potential to encouragecustomers to switch

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

2014

2015

2016

2017 (p)New Car Registrations (m)

2.1

2.0
1.9

1.9

2012
Sources : FFA / ACPR – AFA.
Note: 2017 market data is an estimate

2013

1.8

1.8

2013

2014

2015

2016

2017

103

Market distribution and top players
Market Distribution
TOP 5 MOTOR INSURERS
3%

14%

34%





Growth(17 vs 16)

Covea

19.6%

<1%

AXA

15.1%

-1%

Brokers

Groupama - Gan

10.2%

<1%

Direct

Macif

8.5%

3%

Bank

Allianz

8.2%

5%Agents41%9%MarketShare

Mutuals

Market is dominated by traditional channels (agentsand mutuals)
Bancassurance has been gaining market share in thelast 10 years
Direct is small though underestimated in numbers
and has overtaken banks as the fastest growing
channelSources: Internal estimations based on FFA, SFCR reports and annual reports

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

TOP 5 MOTOR DIRECT

MarketShare

Growth(17 vs 16)

Direct Assurance (Axa)

2.51%

7%

Eurofil (Aviva)

0.38%

3%

L’oliver (Admiral)

0.29%

44%

AllSecur (Allianz)

0.19%

-6%

Amaguiz (Groupama)

0.18%

21%

104

Main direct competitor
Direct Assurance








Biggest direct player
Launched in 1992
Owned by Axa
ProfitableAuto, Motorbike, Home and Mortgage insurance
Strong brand awareness due to longstanding media
investment
Partnership with BNP finished in 2018, newpartnership with Blablacar in 2018

Eurofil







Amaguiz







Launched in 2007
Owned by Groupama
Recently announced break-even
Auto, Home and Pet insurance
Motor insurance but expanding into HomeWhite label partnership with Renault is driving mostof the growth

Historical player
Launched in 1990
Owned by Aviva
ProfitableAuto, Motorbike, Home and Mortgage insurance
Planned rebranding of all 3 French Aviva operations(including Eurofil) in France under Aviva brand

AllSecur

Launched in 2008
Owned by Allianz
Auto, Home and Health insurance
Decrease in premium between 2016 and 2017 due toa risk reduction strategy

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Market Characteristics
Dynamic Aggregator Market
Product €400 average premium 63% of market is fully comprehensive
 70% of customers have full no-claims
bonus (“Bonus 50”)

Gross Aggregator Quotes
9,0M
8,2M
7,1M

7,2M

2015

2016

High retention
 Low churn (15% attrition at renewal)
 But new law making switching easier
Large claims
 Unlimited liability Large bodily injury claims (similar tolarge losses in the UK) with PPOs
 First party injuries are covered only
above 10% disability with low limited
liability

Source: Management estimate

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 20182017

Expected 2018106

Two impactful regulatory changes

Before 2016
 Cancellation at the latest 2 months before
renewal date via registered letter; if passed,
stuck for another year with current insurer

Today Third party is unlimited liability while first party
is limited (usually between €0.5M and €1M) for
the fault driver

After 2016
 Cancellation possible any time after 1 year. New
insurer cancels policy on the behalf of policy
holder. 100% online process possible

Tomorrow?
 Law project to make first party liability
unlimited, with a possible retroactive effect on
all open claims. Currently in discussion between
insurance association and government

Impact No revolution but good evolution
 More fluidity in the market
 Growing awareness and adoption
 L’olivier is clearly benefiting from Loi Hamon

Impact First market analyses show +5-10% impact on
motor insurance prices (significantly more formotorbikes)

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The Market

L’olivier108
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Business Performance - Historic evolution
Turnover (€m)

Customers
66

130k

46

92k

29
15

2013

57k

18

2014

2015

2016

2017

29k

34k

2013

2014

Expense Ratio1

69%

71%

2015

2016

2017

Ultimate Loss Ratio2

66%

98%
57%

97%
77%

83%

79%

2016

2017

44%
38%

2013

2014

2015

2016

2017

2018 H1

2013

2014

2015

Source: 1) Whole account expense ratio on a written basis including ancillaries. 2)Whole account written ULR based on external actuarial LR projections
Note: ratios are not market comparable

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018109

Lessons learned: Things that we had underestimated

Mid term cancellations•

Acquisition cost higher than anticipatedbecause of mid-term cancellations issues(over-represented for customers of pricecomparison websites)

Quality of service•

Good quality of service more challenging
than expected after insourcing ouroperations in Lille

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L’olivier vision in the next 3 years2 Self-service & automation
 Premium product Quality positioning & TV

 Bigger share of Price Comparison Website
market (conversion) Keep improving persistency
 Attracting more standard risks

 Keep pricing advantage
 Better use of data (bothinternal and external)
 Predictive analytics(beyond pricing)

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Scale is key to meet business objectives
L’olivier Aided Brand Awareness and Media Spend•••Price competitiveness to get more clicks
through
Operational efficiency to optimise
conversion post clicks
Brand awareness is key, especially forstandard risks
Brand perception: Strong consumer
desire for “quality” brand image

40%

2,5

35%

2

30%
25%

1,5

20%
1

15%

10%

0,5

5%
0%

0
H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 H2 2017 H1 2018
Media spend

Persistency•••

Persistency is key to amortise
acquisitions costs and benefit from better
loss ratios after renewal
New challenge for the market with
‘Hamon’ regulation
Dedicated ‘Persistency department’

16-65 yrs old with car

L’olivier persistency (Indexed to 100 in 2015)
100

2015

108

2016

115

2017

124

2018

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Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

Media Spend (€m)•

Aided Brand AwarenessConversion

Self service and automation: Key levers for lower expense
ratio and better quality of service
ROBOTS••

Expected impact

Automation of low added-value to free up agents
Execution of time-consuming and value-added activities

OMNI-CHANNEL•••

New responsive portal
Chatbot
Visual interactive voice response for better phone guidance

QUALITY•

Provide 24/7 servicing•

Improve accuracy of
information•

Decrease turn-around time inoperations (improve callanswer rate and decrease
delay in customer requests)

PROCESS AUTOMATION••

Automation of document processing
Further automation of internal processes

COST EFFICIENCY

Save up to 50% manual labour
in Customer Service and 30%
in Claims

Reduce customer contacts
within 5 years by half

NEW CUSTOMER PORTAL•••

Online policy changes
Claims self-service
Unique competitive advantage & customer satisfaction
improvement

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How do we differentiate versus the market on loss ratio?
L’olivier pricing ability - loss ratio

How are we different?

(2017 data, Indexed to Market)

100

107

101






Pricing process (frequency of changes)
Pricing structure
Pricing modelling
Price optimisation techniques (beyond
standard technical pricing based on risk)  Learnings from Admiral Group recipes

MarketL’olivierultimate

L’olivieradjusted ultimate

NB 15%
RNW 85%

NB 50%
RN 50%NB 15%
RN 85%

 When adjusting weight of New Business vs Renewal,
L’olivier ultimate loss ratio is already close to market level

Sources: FFA financial reports and internal data

Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

Focus for the next 3 years






Scale will naturally decrease loss ratio
Better use of data (both internal & external)
Antifraud
Renegotiation of partnerships deals
Claims process optimisation (K4K, approved
garage network)

114

Summary
Strong growth in the past couple of years while strengthening ourfundamentals and improving technical results

Current competitive advantage in pricing to accelerate

Plan is to keep growing Scale is a pre-requisite Special focus both on underwriting, quality and selfservice/automation

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Wrap-up

Wrap-upSolid operations and strong team in continental EuropeSuccessful transfer of Group strengths whilst adapting businesses to local context

European PCWs and Insurers enjoyed a couple of years of sustained growthEuropean insurance is profitable on combined basis

Consistent trend of improvement and expectation to deliver material profit inmedium-term

117Admiral Group │ European Investor Day 2018 │ Rome │ 17 September 2018

Q&A

The Market

Appendix

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A strong management team - CEOs
Milena Mondini de Focatiis - European Insurance CEO
Milena has been working in Admiral Group since 2007. Head of Continental Europe insurance at Admiral Group plc since April, 2016.
Previously, she served as Managing Director of ConTe since its launch. Before joining Admiral, she worked for Accenture and Bain.
Milena studied Telecommunications Engineering at Università degli Studi di Napoli Federico II. in 2006 she did an MBA at INSEAD.

Costantino Moretti – ConTe.it CEO
Costantino joined the initial Italian team to launch ConTe since 2007. He covered different roles across all the business such as
Underwiriting, Product Development, Claims, HR and IT before becoming CEO in 2016.
Previously, he worked for 7 years in the Italian Insurance industry as reserving and pricing actuary. He studied Actuarial Science andhas an executive Master in Business Administration.

Sarah Harris – Admiral Seguros CEO
Sarah is CEO of Admiral Seguros since September 2015. She joined Admiral Group in 2011, working on several strategic projects
across UK, continental Europe and the US.
Before joining Admiral Sarah worked at 8 years PwC in Audit and Corporate Finance in the UK and Spain.
She studied history at University of Oxford, and she holds an MBA at INSEAD.

Pascal Gonzalvez – L’Olivier CEO
Pascal joined Admiral Group as a pricing manager for L'olivier launch in France. Then, took responsibility for Underwriting, Financeand Claims before becoming L'olivier CEO since July 2014.
Pascal studied Economics and modelling at Université Paris Sorbonne. He started his career as an actuary at Axa before moving to
non-life actuarial consulting at Watson Wyatt (in Paris then NYC). Next, he joined Oliver Wyman as a management consultant.

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A strong management team – EU central functions and ConTe
Christophe Sanchez – European Insurance CTO
Christophe joined Admiral Group in 2005. CTO of Continental Europe Insurance since 2016, he leads our technology strategy and efforts acrossEurope. Previously, Christophe was CEO of Admiral Seguros & of L'Olivier. Before joining Admiral he worked as management consultant in financial
services. Christophe studied Maths and IT engineering in France & UK. He also holds an MBA from INSEAD.

Elisa de Blas – Head of AECS
Elisa has been working in Admiral Group since 2008. Currently AECS General manager at Admiral Group plc. Previously, she worked as Head ofFinance and Corporate Governance of Admiral Seguros since 2012, assuming later as well responsibilities in other departments as pricing, analytics,
profitability. Before joining Admiral, she worked for OHL and Sogacable.
Elisa studied Business Administration at Carlos III University and in 2002 she holds an MBA from Instituto de Empresa.

Andrea Tamborrelli – European central support
Andrea works at Admiral Group in 2016 as BDM. Currently manager of European Central support, he previously worked on several strategic projectsof Continental European operations.
Before joining Admiral he worked as private equity investment professional at Partners Group.
Andrea studied Financial Markets at the University of Siena and holds a master degree in corporate finance from Luiss University

Antonio Bagetta – Head of operations, ConTe
Antonio joined Admiral Group in September 2014 as BDM and he is currently Head of Customer Engagement at ConTe.it.
Before joining Admiral he worked five years in the consumer good industry in Procter & Gamble and Uniliver, and four years as a strategic consultant at
Bain & Co. and The Boston Consulting group
Antonio studied Business Administration at University of Rome and has a masters degree in International Business Administration from Luiss University

Daniele Tamborrelli – Technical Director, ConTe
Daniele joined Admiral Group in 2011 as ConTe Finance Manager. In 2013 he took responsibility for managing Portfolio analysis, before becoming ConTe
Technical Director in July 2017.
Daniele studied Business Administration at Luiss University in Rome and was an exchange student at CASS business school in London. After an internshipas financial analyst at JP Morgan, he started his graduate career as a management consultant in McKinsey & co., before moving to the strategy
department of Enel.

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Disclaimer
The information contained in this document has not been independently verified and no representation or warranty, express or implied, ismade as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained
herein. None of the company, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss
howsoever arising from any use of this document or its contents or otherwise arising in connection with this document. Unless otherwise
stated, all financial information contained herein is stated in accordance with generally accepted accounting principles in the UK at the datehereof.
Certain statements made in this announcement are forward-looking statements. Such statements are based on current expectations andassumptions and are subject to a number of known and unknown risks and uncertainties that may cause actual events or results to differ
materially from any expected future events or results expressed or implied in these forward-looking statements.
Persons receiving this announcement should not place undue reliance on forward-looking statements. Unless otherwise required by applicablelaw, regulation or accounting standard, the Group does not undertake to update or revise any forward-looking statements, whether as a resultof new information, future developments or otherwise.
This document is being distributed only to, and is directed at (a) persons who have professional experience in matters relating to investments,
being investment professionals as defined in article 19(5) of the Financial Services And Markets Act 2000 (Financial Promotion) Order 2005, as
amended (the "Order") or (b) high net worth entities falling within article 49(2)(a) to (d) of the Order, and other persons to whom it maybe
lawfully be communicated under the Order (all such persons together being referred to as "Relevant Persons"). Any person who is not a
Relevant Person should not act or rely on this document or any of its contents. Any investment or investment activity to which this document
relates is available only to Relevant Persons and will be engaged in only with Relevant Persons.
The financial information set out in the presentation does not constitute the Company's statutory accounts in accordance with section 423
Companies Act 2006 for the half year ended 30 June 2018.

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