Finance and Capital Management

Target and compensation Aligning remuneration with shareholders interests Business target 3-year cumulative capital generation 1 2020-22 mid-point ₤2.2bn target² After debt financing costs, other Corporate Centre costs and tax Customer and Distribution Transformation Investment Engine Executive Directors' Compensation³ Annual Bonus 30% Non-financial • Customer • Strategic 70% Financial 30% Capital generation • . People Diversity 20% 20% LTIP P With-Profits measure4 Total Shareholder 40% Returns 60% 1. Total change in Solvency II surplus before capital movements and dividends; 2. Provisional target subject to further consideration by the Remuneration Committee of appropriate 2020 incentive plan targets at year-end 2019; 3. Both Annual Bonus and LTIP are subject to potential uncapped downward Risk Adjustments; 4. Includes With-Profits Fund investment performance and expense measures Pre-tax operating profits Capital generation Finance and Capital 23

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