Health insurance companies SIGNAL Krankenversicherung a. G. Deutscher Ring Krankenversicherungsverein a.g.

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1 Health insurance companies SIGNAL Krankenversicherung a. G. Deutscher Ring Krankenversicherungsverein a.g. The gross written premiums for both health insurance companies of the SIGNAL IDUNA Group were 2.8 billion as of 31 December 2012, representing an increase of nearly 2% over the previous year. Deutscher Ring Kranken premium revenues outperformed the market average once again to grow by 5.73%. The number of insured persons in the comprehensive coverage segment grew by 5,001. By comparison, the number of insured persons in the industry overall declined. The number of insured persons in the supplemental coverage segment dropped by 8,500. These lower figures are due to such factors as cancelled contracts with reimbursement of co-payments. In all, approximately 2.63 million persons had comprehensive or supplemental coverage policies with the SIGNAL IDUNA Group's health insurance companies (health and nursing care insurance). "The system's strength is based on two pillars. The quality of the German healthcare system is admired the world over. Its high stability and effectiveness comes from the two pillars statutory and private health insurance segments", explained Reinhold Schulte, Managing Director of the SIGNAL IDUNA Group. Gross expenditures for direct business insurance claims rose by 2.95% for both health insurance companies (SIGNAL Kranken: +2.7%, Deutscher Ring Kranken: +3.8%). As in years past, SIGNAL Kranken disbursed significant premium refunds to its customers in 2012, for a total of million (previous year: million). Deutscher Ring Kranken also maintained a high level and paid cash disbursements of 25.5 million in 2012 (previous year: 28.9 million). "We are proud to say we are not increasing premiums for either company in The necessary adjustments can be financed exclusively from equity. In addition we offer our customers attractive premium refunds", explained Dr Karl-Josef Bierth, member of the Board of the SIGNAL IDUNA Group. The excellent equity base, which was confirmed in 2012 by ratings agency ASSEKURATA, further improved at SIGNAL Kranken. The equity ratio measured in terms of the gross earned premiums rose from 21.7% to 23.0%. In a survey conducted by ASSEKURATA this year, SIGNAL Kranken customers gave the company top ratings. The underwriting earnings ratio (which states in percent of gross earned premium revenue how much premium income remains after deducting expenditures for claims and operating expenses) was further improved. At SIGNAL Kranken it was 14.5% (previous year: 14.9%) and at Deutscher Ring Kranken it was 16.2% (previous year: 13.3%). "It has long been known that statutory nursing care insurance alone is not enough to cover the actual costs of nursing care. The government has finally realised the need for private insurance to cover this risk: as of 1 January 2013, every insured person over the age of 18 receives an annual subsidy of 60 toward a nationally accredited supplemental nursing care policy. Both health insurance companies of the SIGNAL IDUNA Group have introduced the PflegeBAHR tariffs as a product eligible for subsidy and PflegeBAHRPLUS as an upgrade version", said Dr Bierth. In the first quarter of 2013, the gross written premiums from both health insurance companies rose by 0.68% year-on-year. Page 1 of 6

2 Life insurance companies IDUNA Vereinigte Lebensversicherung ag für Handwerk, Handel und Gewerbe SIGNAL IDUNA Pensionskasse AG New business for IDUNA Leben developed very well once again in Measured in terms of regular new premium business it grew by 14.7% to million (previous year: 92.2 million, +12.7%) and thus outperformed the market average of -3.2% (life insurance defined in more restrictive terms). For insurance certificate redemptions, regular new business premiums grew by 20.0%, in contrast to the market average of -5.3%. At the end of the 2012 financial year, IDUNA Leben had a regular premium portfolio of more than 1.1 billion; or an increase of 0.8% versus the previous year. Once again, occupational pensions contributed to the positive development in new business for regular premiums, with an increase in new business of 9.7% to 19.9 million. "Our good results are proof that people still consider private pensions a necessity. Life and pension insurance remain at the top of pension customers' lists", said Reinhold Schulte, Managing Director of SIGNAL IDUNA. The highest share of new business for regular premiums was attributed once again to pension insurance with 38.0%. Thanks to a solid, security-oriented investment policy, IDUNA Leben is offering its customers an attractive profit participation again in 2013 despite the fact that interest rates on the capital market remain low. The total return (actuarial interest rate plus profit participation rate) in this year is 3.6%. Including terminal bonus and minimum participation in the valuation reserves, the total return is 4.0% for the classic SI pension insurance. In the year under review, IDUNA Leben performed well once again and paid out a high level of benefits to its customers: gross expenditures for insurance claims were nearly 1.6 billion in The largest share (nearly 80%), as in previous years, was attributed to maturity benefits and pension payments. The development of the cancellation rate was also pleasing: it decreased further from 4.6% to barely 4.5%, thus outperforming the market by 0.6 percentage points. The gross written premiums of all the Group's life insurance companies declined slightly in the year under review by 45.0 million or 3.0% to approximately 1.45 billion (2011: approximately 1.5 billion). At IDUNA Leben, the regular gross written premiums rose by 0.1% to 1,089.4 million. Due to the continued intentional restraint in the one-time premium business, this declined by 50.3 million to million (-20.1%; market +1.2%). Therefore, the gross written premiums at IDUNA Leben dropped by 49.7 million or 3.7% to nearly 1.3 billion. The investments of IDUNA Leben rose in the year under review to some 18.7 billion, corresponding to a 2.1% increase. Net income from investments was million in 2012; net interest was 4.9%. Gross profit rose year-on-year by 40.9 million to million. The reasons for this increase were the good investment result as well as the positive development of the risk result. New business for SIGNAL IDUNA Pensionskasse (SIPK) also performed well in the 2012 financial year. Regular premium new business rose by 8.5% to nearly 11 million (previous year: 10.1 million). Regular premium new business rose by 12.0% in redeemed insurance certificates. At the end of the 2012 financial year, SIPK had a regular premium portfolio of more than million; or a 1.4% increase versus the previous year. SIPK's total return (actuarial interest rate plus profit participation rate) in 2012 was 3.6%. Including terminal bonus and minimum participation in the valuation reserves, the total return is 4.0% for the classic SI pension fund provision. Page 2 of 6

3 The demand for conventional products and unit-linked products with guarantees remains high. With the attractive products offered by IDUNA Leben and SIPK, SIGNAL IDUNA has access to both product lines in all three levels of retirement provision. Comprehensive guarantees, high security and flexibility as well as good return opportunities and unified product design distinguish these products. Special product highlights in the third level and occupational pensions are the comprehensive, flexible expansion options for insurance protection. According to the subsequent rating by ASSEKURTA, IDUNA Leben once again earned the overall grade of A ("good"). IDUNA Leben was rated as "very good" in the subcategory of "security". ASSEKURATA considers IDUNA Leben's product range to be among the most innovative on the market. "In addition to the Assekurata rating, many other 'excellent' ratings underscore IDUNA Leben's product quality and thus its reliability as a powerful partner for pension insurance", said Marlies Hirschberg-Tafel, member of the Board of SIGNAL IDUNA. In the fourth quarter, IDUNA Leben issued a member bond in the amount of 200 million. It is meant to boost equity and is an attractive investment for our customers. The life insurance industry perceives as a missed opportunity the fact that initial plans to make new provisions for customer participation in valuation reserves have been shelved. Given the low interest environment, the currently applicable provision is especially disadvantageous for customers who keep their contracts until the maturity date. The new provision, which is also supported by insurance regulator BaFin, is absolutely needed in order to provide a level playing field for all insured parties. The upward trend from the 2012 financial year is continuing in the first quarter of 2013 as well. IDUNA Leben's new business excluding other additions measured in regular premiums increased in the first quarter by 62.5% to 34.8 million; at SIPK new business rose by 10.2% to nearly 3.5 million. Composite insurers SIGNAL IDUNA Allgemeine Versicherung AG SIGNAL Unfallversicherung a. G. ADLER Versicherung AG PVAG Polizeiversicherungs-AG DEURAG Deutsche Rechtsschutz-Versicherung AG The gross written premiums of all composite insurance companies of the SIGNAL IDUNA Group (domestic) stood at 1.12 billion as at 31 December 2012, representing an increase of 3.0% over the previous year ( 1.09 billion). However, expenditures for insurance claims rose by only 1.9% to million (previous year: million). In the accident insurance segment, accident insurance with guaranteed premium refunds performed especially well. Premium growth here was 6.9%. The good performance of the motor insurance segment continued in The number of insured risks rose by 0.9%. Written premiums increased by 2.9%. "Motor insurance has performed well for a number of years now, although we were not a part of the cut-throat competition. This shows that here, too, we have proven our worth as an insurance company that offers real service", explained Reinhold Schulte, Managing Director of SIGNAL IDUNA. The partnership with motor club Auto- und Reiseclub Deutschland (ARCD) continues to be productive in its third year. ARCD offers its 100,000 members of whom 80% are public servants a comprehensive range of services that are complemented by SIGNAL IDUNA products. Page 3 of 6

4 "In 2012, we acquired some 10,000 new members thanks to SIGNAL IDUNA's sales staff. The cooperation with ARCD resulted in approximately 17,000 new contracts Group-wide, with annual premiums of around 7.3 million", said Dr Klaus Sticker, Board member of the SIGNAL IDUNA Group. The portfolio was also expanded in the property, liability and transport insurance segments. In the private customer business, growth was due primarily to a product line introduced back in 2010 that offers bundling and loyalty discounts of up to 40%. As of the end of 2012, 442,000 contracts with a premium volume of 39.1 million had been concluded; of these, approximately 157,000 were purely new business policies. Dr Klaus Sticker noted: "The development of the new product generation for private and commercial building insurance was completed as planned last year. With the new tariffs, we are meeting the challenges of climate change, technological advancements, and the new building energy standards." The new financial year is off to a good start. "Business development has been encouraging in the first quarter of 2013", said Dr Sticker. "Premium growth was 6.8% in the segments of property, transport, liability, accident and motor insurance." SIGNAL IDUNA Bauspar AG SIGNAL IDUNA Bauspar AG had very good earnings in Gross new business increased by 9.8% to 496 million. At 127 million, the sale of financing products nearly met the previous year's record. The FREIraum building society tariff earned top marks in various tests: among others, it won the title of "Best building society" for the third time in a row, awarded annually by the Institut für Vermögensaufbau on behalf of finance magazine Focus Money. The innovative introduction of FREIraum, a low-interest building society tariff, in 2006 is paying off in a dual sense given the Euro financial crisis. On the one hand, the share of higher interest tariffs has continued to decline, while on the other, the particularly low target interest for building society loans (between 2.0% and 4.0% depending on the tariff type selected) is a genuine alternative for home builders even in the current low-interest environment. Despite the continued low interest rates on the money and capital market, positive net interest income of 16.7 million was again generated; a 12% dividend was paid to shareholders. DONNER & REUSCHEL The private bank subsidiary of SIGNAL IDUNA, had a successful 2012 financial year and will further boost its equity from profits this year. As of the 31 December 2012 reporting date, the total assets were 4.3 billion and assets under management were 9 billion. Net income was 9 million and will be added to the bank's core capital. The Donner & Reuschel investment solutions are consistently at the top of the fund ranking lists. Its best-of-two strategy and asset management strategies with the multi-asset approach performed very well compared with the competition in For the second year in a row, the banking house was rated by an independent agency for its excellent advisory strategies. A banking test by the Institut für Vermögensaufbau AG (IVA) on behalf of Focus Money and n-tv awarded the advisory quality a rating of "very good". The Elite Report of asset managers gave Donner & Reuschel a "summa cum laude" rating along with the top award for consulting services for municipal investors. Thus, the bank is one of the leading asset managers in the German-speaking region. Page 4 of 6

5 As of the beginning of the year, chief representative and head of the back-office for credit and administration Uwe Krebs was appointed to Donner & Reuschel's Managing Board. Since 1 January 2013, the Managing Board has consisted of representative Marcus Vitt, Dr Laurenz Czempiel, Uwe Krebs and Jörg Laser. HANSAINVEST As of the end of the 2012 financial year, HANSAINVEST once again had the highest earnings in its history. It outperformed the previous year's results with a record of 7 million. While the capital markets subjected investors in 2012 to turbulent developments and major uncertainty, thanks to the strategic expansion of the Service-KAG (a capital investment company), the closer cooperation with the SIGNAL IDUNA Group and pleasing growth in the investment funds, the fund volume to be managed was 12.9 billion as of 31 December This was an approximately 1.5 billion increase versus the previous year. Thus, HANSAINVEST ranked eighth in the area of inflow of funds from mutual securities funds of all capital investment companies in Germany and fifth without the inclusion of foreign capital investment companies. Honours were awarded to HANSAgold (top German gold fund) and HANSAinternational (foreign currency bonds) mutual funds. HANSAgold received multiple "Golden Bulls" from FinanzenVerlag in various time periods and in both share classes. HANSAinternational achieved an A rating once again and is thus among the first 20 percent of its category. Abroad SIGNAL Versicherung AG, Budapest, Hungary SIGNAL IDUNA Polen Versicherung AG, Warsaw SIGNAL IDUNA Polen Lebensversicherung AG, Warsaw SIGNAL IDUNA Versicherung AG, Bucharest, Romania SIGNAL IDUNA Rückversicherungs AG, Zug, Switzerland SIGNAL Versicherung AG, Budapest, Hungary In an economically difficult environment, SIGNAL Versicherung AG in Budapest recorded a 24% increase in new business during the 2012 financial year. Premiums grew to a total of around 48 million. In the coming years, investments will be made in expanding marketing and in new products, particularly in the field of occupational health insurance. SIGNAL IDUNA Polen Versicherung AG, Warsaw SIGNAL IDUNA Polen Lebensversicherung AG, Warsaw As at 31 December 2012, both Polish SIGNAL IDUNA companies recorded premiums in the amount of approximately 21 million (previous year: 23.9 million). There is currently a restructuring program ongoing to improve profitability. SIGNAL IDUNA Versicherung AG, Bucharest, Romania The SIGNAL IDUNA Group subsidiary founded in 2008 is generating double-digit growth in a stagnant market. The company has gained market leadership in this insurance segment thanks to its special expertise in occupational health insurance. The premiums written by the Romanian subsidiary were 2.4 million as at 31 December This is an approximately 28% increase. Page 5 of 6

6 SIGNAL IDUNA Rückversicherungs AG, Zug, Switzerland Our reinsurance company in Switzerland continues to perform well. Premiums rose by 11.1% to million. For the fourth consecutive year, the company will pay a 4% dividend to SIGNAL IDUNA Allgemeine. Press office Contact: Edzard Bennmann Tel.: Fax: edzard.bennmann@signal-iduna.de Hannes Tutschku Fax: hannes.tutschku@signal-iduna.de Page 6 of 6