Investor Presentaiton

Insurance sector The Czech insurance sector is dominated by the Generali and VIG insurance groups. The re- mainder of the TOP 10 insurance companies is made up by composite insurance companies, while the rest is represented by bank-assur- ance and specialised insurance companies. As at 30 September 2015, 54 insurers (including foreign branches) and one reinsurance compa- ny offered insurance services to clients in the Czech Republic. Local shareholders controlled 14 insurance companies, whereas the rest had mostly foreign owners. The two largest groups reached CZK 74.2 billion of gross writ- ten premium (measured by annual premium equivalent). Overall market profitability is ap- proximately a 12% return on equity (three-year average/2012 - 2015) and the market manages approximately CZK 480 billion of assets. Typical products include both life and non-life insurance. The non-life insurance business is dominated by car insurance (compulsory mo- tor third party liability insurance and casualty and collision (automobile insurance)) and com- mercial insurance. The supervision of the insurance market is per- formed by the CNB. Investment management and funds As at 30 September 2015, the Czech market is represented by more than 350 investment funds domiciled in the Czech Republic, accord- ing to CNB statistics. In addition, approximately 1,300 foreign investment funds are registered for public offer in the Czech Republic. According to an act adopted in 2013, extending options for establishing new investment funds in line with European regulations, investment funds may take the following legal forms: - mutual fund; - trust fund; - joint-stock company; ― investment company with variable capital (société d'investissement à capital variable); - limited partnership; ― limited liability company; - European company. Generally, minimum fund capital of EUR 1.25 million is required. The foundation of funds ful filling EU requirements must be approved by the CNB. A notification duty to the CNB only ap plies to special investment funds not fulfilling these requirements. However, every fund's as- set manager must have the approval of CNB. 48

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