WHY MILES CAPITAL GO BEYOND INSURANCE ASSET MANAGEMENT

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1 WHY MILES CAPITAL GO BEYOND INSURANCE ASSET MANAGEMENT Insurance Expertise. Tangible Results.

2 Insurance Expertise is Core to Everything We Do. We have designed our services behind one common goal helping to deliver on our insurance clients strategic outcomes. This focus has enabled us to serve and help deliver the results that matter to insurers for more than three decades. As a client of Miles Capital, our mission is to understand what matters to each insurer and construct the portfolio to align the investment results and outcomes to help support their business objectives. What matters to our clients businesses, matters to us. OUR CLIENTS HAVE TOLD US THEY RECEIVE, AND WE ARE CONFIDENT INSURERS WILL EXPERIENCE, THREE THINGS AS A CLIENT OF MILES CAPITAL: TRUSTED, INTEGRATED GUIDANCE Insurers can trust our team of insurance experts not to sell a product or service, but rather to provide guidance on how to achieve the results that are of value. PURPOSEFUL, ALIGNED PORTFOLIO MANAGEMENT Each portfolio with Miles Capital will be designed purposefully to help deliver on and complement the business goals that matter. PROACTIVE, CONSULTATIVE, AND FOCUSED CLIENT SERVICE We are committed to providing unsurpassed service. Our goal is for each insurer to feel as if they are our only client. Why Miles Capital? The Answer Sounds Simple But Helps Create Results that Matter to Insurers: It is our Design & Delivery. It sounds simple, but is actually critically important. Everything we build or create is designed from the perspective of the insurer, not the asset manager. And, we deliver our services simply and comprehensively to help provide strategic outcomes that bring additional value to our clients. We help take complexity and randomness and provide clarity and purpose. 1

3 DESIGN Miles Capital Assets Under Management 6/30/2016 $4.8 B AUM Client Breadth Property & Casualty Life & Health Captive Insurance Client Key Statistic Proof Point TRUSTED, INTEGRATED GUIDANCE FROM A TEAM OF INSURANCE PROFESSIONALS Our team brings a wealth of insurance industry knowledge because we have specifically constructed our team with the purpose of understanding and meeting our clients needs. Our clients can trust us not to sell a product or service, or even a solution. Instead,they can trust us to know them well, communicate proactively, and provide guidance that helps deliver on the results that matter to them and their business. Nearly all of our investment professionals, and many of our other team members, have backgrounds deeply rooted in the insurance industry. Average Client Tenure Investment Team Portfolio Managers Analysts Insurance Expertise 15 yrs Avg Exp 20 yrs 7 yrs 11 yrs KEY EXAMPLES Gregory Boal, CEO & CIO Previously served as CEO of Aviva Investors North America, $50 billion AUM insurance asset management arm of Aviva Insurance Global. Doug Earney, Director, Fixed Income Previously served as Fixed Income & Specialty Portfolio Manager with Principal Global Investors, asset management division of Principal Life Insurance Company. Our insurance expertise is what has allowed us to design unique, insurance-focused services and deliver them effectively to our clients. Allen Goody, Director, Equity Previously served as Private Securities Analyst and Portfolio Manager with Allstate Investment Management Company, the asset management division of Allstate Corporation. Steve Stotts, Director, Alternative Markets Previously served as Vice President, Head of External Managers for Aviva Investors North America. In these prior roles, our professionals made many of the same decisions our clients make today, such as how to grow surplus while maintaining a wellbalanced risk profile, how to support the capacity ratio and avoid negative consequences for business growth, and how to move net investment income forward in a low interest rate environment. Our insurance clients have told us they know our focus is on the insurance industry, on them, and on what s important to their businesses. They invite us to take part in and provide guidance during their strategic conversations. And, we believe each insurer will experience the same service, focus, and strategic partnership with us. 2

4 DESIGN Proof Point PURPOSEFUL, ALIGNED PORTFOLIO MANAGEMENT: OBJECTIVES-BASED ASSET ALLOCATION The key to a successful insurance investment management program is determining an appropriate, insurance-based, forward-looking asset allocation. Done correctly, an investment management strategy can position the portfolio to deliver the investment outcomes that support, enhance, and help achieve an insurer s business objectives. Done incorrectly, the investment portfolio may significantly detract from business results, potentially leaving an insurer with gaps or at a competitive disadvantage. This knowledge guided us in our design of Objectives-Based Asset Allocation (OBAA ), a truly insurance-based, proprietary asset allocation methodology. OBAA directly addresses the shortcomings of traditional asset allocation models in three critical ways: FIRST OBAA recognizes and directly addresses the four fundamental investment needs shared by insurance companies: Yield Generation, Growth, Inflation Protection, and Risk Mitigation. Traditional models do not consider the unique requirements of the insurance industry. SECOND It is designed to understand and help achieve the investment outcomes that support key business objectives. Traditional models focus on portfolio risk and return, which is not enough to help achieve objectives. THE FOUR CORE NEEDS Yield Generation Insurers typically allocate heavily to this objective for three reasons: asset/liability matching (ALM), net investment income generation, and capital treatment. Growth Insurers must grow the cumulative surplus to support core business needs. Inflation Protection Insurers may need to offset significant inflation risks inherent in the actuarial assumptions made in the core business lines, which protects purchasing power. Risk Mitigation Insurers need to adequately manage the business line and portfolio risks. THIRD It provides each insurance company client with a forward-looking, multiyear analysis. OBAA is, in effect, a five-year strategic plan for investment of the portfolio. Traditional models produce a point-in-time answer, based on historical asset class conditions. Our intelligent, forward-looking process results in a unique and effective portfolio recommendation that demonstrates clear changes designed and conveniently delivered to help support the desired outcomes. Each insurer is unique, but likely seeks results that are: tied to business objectives, clear and purposeful, and intentionally strategic. OBAA, by providing a road-map, helps ensure that the investment portfolio meets these needs. 3

5 DELIVERY Property Casualty Assets 6/30/2016 Proof Point PURPOSEFUL, ALIGNED PORTFOLIO MANAGEMENT: ASSET CLASS BREADTH Effective and efficient access to the relevant asset classes is paramount to the success of an investment strategy. But more than that, shared knowledge across the asset classes is critical. The industry and each asset class are more interrelated than ever. Information from any one market materially impacts all others. Managing insurance portfolios requires understanding client objectives, proactive communication, and unique expertise across the broad array of asset classes in order to enhance access and risk-adjusted returns. Insurers, and their asset managers, need to know exactly what they own and why they own it. We bring this knowledge, expertise, and access to bear for insurers. Life Company Assets 6/30/2016 Source: Miles Capital Client Data FIXED INCOME Strengths Disciplined Portfolio Construction Robust Risk Management Sector Specialization Manager Average Experience 19 years ACTIVE EQUITY Strengths Diversified Offerings Global Reach Both Separate Account & Fund Format Manager Average Experience 17 years ALTERNATIVE ASSETS Strengths Top-Tier Managers Addresses Growth, Risk, Inflation Needs Both Direct Investment & Fund Format Manager Average Experience 27 years Strategy Capabilities Investment Grade - All Sectors High Yield Commercial Mortgage Loans Duration Management & Total Return Strategy Capabilities Large & Small Cap Equity Income REITs Global & International Strategy Capabilities Private Equity Diversified Hedge Funds Real Assets We believe that managers with a single focus or expertise may not fully understand how to align an insurer s portfolio to help meet their needs or access the necessary assets. We provide comprehensive and holistic asset management. Or we can provide a singular strategy. No matter the scope, we bring communication and value-added knowledge derived from our access to multiple markets to help deliver results that matter. 4

6 DELIVERY Proof Point PROACTIVE, CONSULTATIVE, AND FOCUSED CLIENT SERVICE We understand the significant importance of delivering the absolute highest level of service to our clients. Miles Capital will proactively partner with each insurer every step of the way. Beyond delivering our suite of insurance company services, we form strategic partnerships with our clients, which has led to strong satisfaction and long client tenure on average nearly 15 years. As a strategic partner, our goal will be for each client to feel as though they are our only client and we are a fully integrated investment team, able to align the portfolio to aid in reaching investment goals and objectives. We assign a cross-functional team of highly-skilled investment professionals to each insurance client, led by a single point of contact. This team includes relationship, portfolio, operational, and executive team members. While we will create a proactive communication plan, each team member will be available for any portfolio and insurance-related inquiries. KEY TAKEAWAYS We view client service as a Strategic Partnership We will assign a cross-functional team of professionals, led by a single point of contact We are committed to growing with you to help deliver the outcomes that matter Our goal is to be viewed as the fully integrated and trusted team just down the hall We have grown with our clients over the last thirty years and will continue to do so, designing and delivering new capabilities to help meet evolving needs. We are dedicated to providing superior outcomes and committed to acting as the fully integrated investment officer just down the hall. Our clients have told us they appreciate the team-oriented nature our service model provides and that our services and insurance expertise have directly assisted them in enhancing their business outcomes. We are confident our service model, strategic consultation, and proactive communication will distinguish us as a trusted partner to any leadership team and board. OUR INSURANCE COMPANY SERVICES ADDRESS INDUSTRY CHALLENGES Business & Underwriting Complexities Enterprise Risk Management support Training & Education Competitive Positioning OBAA Peer Financial Review Market & Business Needs Scenario Analysis & Stress Testing Liquidity planning Rating Agency & Regulatory Evolution Rating agency support RBC & BCAR IMPACT Analysis Capital efficiency recommendations Performance Measurement Glide-path and Objectives Reporting Customized Benchmarking Accounting Procedures Quarterly insurance package Schedule D & OTTI support Team & Time Constraints Operations/Back Office support Custody support & advice 5

7 CASE STUDIES We are driven by a single-minded focus on our clients needs. This focus ensures we design portfolios to help meet these needs, delivered to help support strategic outcomes. Consider the following examples: Client Objective: Aligning Portfolio & Business Growth REGIONAL, MULTI-LINE P&C INSURER, A RATED Company had experienced strong premium growth and needed to grow surplus at a commensurate rate to stabilize their capacity ratio and thereby avoid underwriting and sales limitations. Our comprehensive OBAA analysis identified an opportunity to increase utilization and diversification of growth assets with minimal impacts to the overall risk profile. We educated the management team and investment committee, and implemented the recommendation. RESULTS Their surplus growth rate has increased 2 percent and their capacity ratio is stabilizing. Client Objective: Meeting the Yield Challenge NATIONAL, NICHE LIFE INSURER, A RATED Company desired an increase in book and investment yield. Our OBAA analysis identified an unforeseen additional challenge to their crediting rate. An asset allocation solution directly addresses this product challenge. We recommended new and complementary asset class exposures, educated their board, held discussions with their AM Best analyst, and led the implementation with their other asset managers. RESULTS Client yield is improving and they have not had to decrease their crediting rate. Client Objective: Addressing AM Best & Ratio Concerns NATIONAL, SINGLE-LINE P&C INSURER, A- RATED Company received an AM Best review that highlighted a concern regarding their IRIS ratio. We helped the client identify and prioritize specific yield and growth objectives to help enhance their IRIS ratio. We identified the ability to take both additional risk to enhance IRIS and to add risk mitigating asset classes as a counterbalance. We educated the management team and board on the complementary asset classes and the forward-looking glide path. RESULTS Client is moving forward with recommendation, and the projections demonstrate significant improvement in both yield and growth. Past performance is not indicative of future results. There can be no guarantee that any investment strategy discussed in this Presentation will achieve its investment objectives. As with all strategies, there is a risk of loss or all or a portion of the amount invested. 6

8 MILES CAPITAL: BEYOND TRADITIONAL INSURANCE ASSET MANAGEMENT At Miles Capital, everything we do is created from the point of view of our insurance clients. We leverage our insurance expertise along with our comprehensive asset management prowess to design and deliver clear, flexible, and tailored solutions that are in each client s best interests. Due to our unparalleled client service, our clients know that their portfolios are not a random assortment of asset classes, created simply to fill an investment need. Instead, our clients know their portfolios are fully aligned with their strategic direction, designed to provide clear purpose and direction. Let us help take complexity and randomness and provide clarity and purpose. WE LOOK FORWARD TO DISCUSSING WHAT YOUR EXPERIENCE WITH US WILL BE th Street Suite 200 West Des Moines, IA The information contained herein is solely for informational purposes and does not constitute an investment recommendation or an offer to sell any investment product. This document does not take into account the particular investment objectives or financial circumstances of any specific person or entity who may receive it. Before making an investment, investors are advised to thoroughly and carefully review financial, legal and tax consequences of all investments to determine suitability. All investments involve risk, including the loss of principal. Past performance is not indicative of future results. There can be no guarantee that any investment strategy discussed in this Presentation will achieve its investment objectives. As with all strategies, there is a risk of loss or all or a portion of the amount invested. All expressions of opinion and predictions in this report are subject to change without notice. All information contained herein is believed to be correct, but accuracy cannot be guaranteed and should not be relied upon for legal or investment decision purposes. Miles Capital makes no warranty and assumes no legal liability for the accuracy, completeness or usefulness of any information disclosed. This document is provided on a confidential basis by Miles Capital. Accordingly, the presentation may not be produced in whole or part, and may not be delivered to any other persons without the consent of Miles Capital. This Presentation is not a solicitation of an offer to buy or sell any security or other financial instrument or to participate in any trading strategy.