CIG PANNÓNIA FIRST HUNGARIAN GENERAL INSURANCE COMPANY LTD.

CIG PANNÓNIA FIRST HUNGARIAN GENERAL INSURANCE COMPANY LTD. QUARTERLY INFORMATION Q4 2015 23 February 2016

1. Summary CIG Pannónia First Hungarian General Insurance Company Ltd. (hereinafter: EMABIT, Company or Insurer) publishes this report, simultaneously with the Q4 report to the stock exchange of its parent company, CIG Pannónia Life Insurance Plc. with the data disclosed, on a voluntary basis, to the Association of Hungarian Insurance Companies (MABISZ). Data provided to MABISZ are included in Annex 1 to the present information. Main results and events 2015: Desciption 31.12.2015 (A) 31.12.2014 (B) Change (A)-(B) million HUF % (A/B) Gross written premium 3 661 2 496 1 165 147% Technical result (without operating costs) 500 267 233 187% Operating costs -370-413 43 90% Technical result 130-146 276 n/a Retained profit/loss for the year 87-266 353 n/a - The new strategy is successful. 2015 was the first year, when the Company accomplished the new, accepted strategy, therefore the results show the efficiency of it. The new strategy means three major goals: profitable operation, resturcturing in sales and the determining presence in the niche markets. According to the published results it is declared: the change in strategy has fulfilled the expectations. - Breakeven of EMABIT. At the end of 2013, EMABIT started to modify it s business strategy and organisation. It redeemed those segments, which was unprofitable and focused on those niche martkets, where it can offer competitive products and oprerate profitable. As the result of the process above the technical result of the Insurer was HUF 500 million, which amounted to HUF 130 million reduced with the opreration cost. The retained profit is HUF 87 million in 2015, which is HUF 353 million higher than the retained loss of 2014. The shareholder s equity is HUF 1,473 million as at 31 December 2015. The solvency capital is amounted to HUF 1,371 million, which covers 120 percent of the minimum solvency capital requirement. - The technical result improved significanty. In 2015 EMABIT generated a gross written premium of HUF 3,661 million, the majority thereof relating to the casco and liability. The amount of new acquisitions was HUF 1,889 million in 2015, which came to a portfolio of HUF 2,777 million at end of the year. The improved quality of the insured portfolio resulted to increase the technical result (without operating costs) by 187% compared to the previous year. Meanwhile the increased efficiency of the operation led to a decrease in the operating costs (it fell with 10 percentage compared to 2014). - New inland products, expansion abroad. In accordance with the strategy, the Insurer launched new niche products in 2015. The Insurer increased significantly its activity in Italy, which has an impact on the new acquisition numbers. In Poland it also appeared on the land vehicles comprehensive coverage (casco) product market with a partnersip of a dominant partner in vehicle financing. With the collaboration with it s partner EMABIT started the vehichles GAP and extended warranty also in Poland. The Company appeared in the inland market with Agro equipment insurance, which is a new coverage product for machinery breakdown and extended warranty of agricultural machines. - EMABIT decieded to take over the land vehicles comprehensive coverage (casco), accident and sickness portfolio of Széchenyi István Kölcsönös Biztosító Egyesület (SZIBE). The take over was approved by the MNB on 1 October 2015. CIG Pannónia First Hungarian General Insurance Company Ltd., information on Q4 2015 2

- The chief actuary position is filled by Erika Kelemen with the approval of MNB as 21.12.2015 instead of Nobert Németh. Events after the balance sheet date: - The Hungarian National Bank (MNB) made a comprehensive examination between 27 April 2015 and 19 June 2015. The examination was closed with the resolution H-JÉ-II-B-1/2016, which fined the Insurer HUF 7 million supervisory fine and HUF 3 million consumer protection penalty. EMABIT started to perform the ordered measures and will accomplish them on time. Budapest, 23 February 2016 CIG Pannónia First Hungarian General Insurance Company Ltd. CIG Pannónia First Hungarian General Insurance Company Ltd., information on Q4 2015 3

2. Financial Statements Headlines in the Insurer s Income Statement million HUF Changes in profit/loss 31.12.2015 (A) 31.12.2014 (B) (A)-(B) % (A/B) Gross written premium 3 661 2 496 1 165 147% Change in the unearned premium reserve (gross) (-/+) - 532-182 - 350 292% Gross earned premium 3 129 2 314 815 135% Reinsurance premiums (-) - 1 902-801 - 1 101 237% Reinsurer s share in unearned premium reserve 215 262-47 82% Net earned premium 1 442 1 775-333 81% Gross claim settlement expenditure - 1 121-818 - 303 137% Gross claims paid - 1 009-1 368 359 74% Gross changes in claim reserve - 112 550-662 n/a Claim settlement costs - 86-116 30 74% Reinsurer s share of claim settlement expenditure 1 016 199 817 511% Reinsurer s share of claim payments 736 275 461 268% Reinsurers' share of reserve changes 280-76 356 n/a Net claim settlement expenditure - 191-735 544 26% Other changes in reserves - 3 84-87 n/a Acquisition costs - 1 465-926 - 539 158% Changes in deferred acquisition cost 322 60 262 537% Commissions and profit shares from reinsurers 537 109 428 493% Other technical result - 142-100 - 42 142% Technical result (without operating costs) 500 267 233 187% Operating costs - 370-413 43 90% Technical result 130-146 276 n/a Investment result 88 88-100% Other result - 124-208 Profit/loss for the period before taxes 94-266 360 n/a Tax liability - 7 - - 7 n/a Retained profit/loss for the period 87-266 353 n/a 84 60% CIG Pannónia First Hungarian General Insurance Company Ltd., information on Q4 2015 4

Headlines in the Insurer s Balance Sheet 31.12.2015 (A) 31.12.2014 (B) (A)-(B) million HUF % (A/B) Intangible assets 102 99 3 103% Investments 2 209 1 964 245 112% Receivables 568 642-74 88% Other assets 190 274-84 69% Prepaid expenses and accrued income 751 384 367 196% Total assets: 3 820 3 363 457 114% Shareholders' equity 1 473 1 386 87 106% Technical reserves 1 313 1 152 161 114% Unearned premium reserve 889 570 319 156% a) gross amount 1 426 892 534 160% b) reinsurers share of the reserve (-) - 537-322 - 215 167% Outstanding claim reserves 350 512-162 68% a) gross amount 912 794 118 115% b) reinsurers share of the reserve (-) - 562-282 - 280 199% Premium refund reserves 18 13 5 138% a) gross amount 18 13 5 138% Other reserves 56 57-1 98% a) gross amount 99 63 36 157% b) reinsurers share of the reserve (-) - 43-6 - 37 717% Liabilities 835 602 233 139% Accrued expenses and deferred income 199 223-24 89% Total liabilities: 3 820 3 363 457 114% CIG Pannónia First Hungarian General Insurance Company Ltd., information on Q4 2015 5

3. Presentation of the Insurer s financial position the Insurer s nonaudited data for 2015Q4, according to the Hungarian Accounting Act In 2015 the Insurer realized a gross written premium of HUF 3,661 million, of which the amount of premiums transferred to the reinsurer was HUF 1,902 million, the change of the unearned premium reserve was HUF 532 million, and the reinsurer s share of the latter was HUF 215 million. The total amount of the net earned premiums was HUF 1,442 million. The total amount of the gross earned premium has increased by 35% (with HUF 815 million), while the total amount of the net earned premium decreased by 19% (with HUF 333 million) compared to 2014. This is due to a new structure of reinsurance in casco, other damage to property and general liability insurance products, which is more beneficial for EMABIT. Within the gross written premium the composition of the portfolio was similar to the previous year. In 2015 the land vehicles comprehensive coverage (casco) is the leading product (38%), while the general liability insurance is the second (24%) and the suretyship, guarantee is the third largest branch (12%). The fire and natural forces, other damage to property, goods in transit, self-propelled motor vehicles and accident shares are about 4-7% each. The rest is divided among compulsory motor third party and other smaller products. The most important item among expenses is the amount of claim settlement expenditure (HUF 191 million), which is made up of claim payments (HUF 273 million), the change of the outstanding claim reserve (HUF -167 million) and the costs of claim settlement (HUF 85 million). The net claim settlement expenditure in the last quarter was better than the average. In total, the trend of the net claim settlement expenditure is favourable in 2015 (HUF 544 million less than the previous year). It is caused by the change of the reinsurenace structure and the positive run off results of the compulstory motor third party and land vehicles comprehensive coverage (casco). The net claim expenditure decreased by 74%, while the net earned premium decreased by 19% compared to the previous year. This led the gross claim ratio decrease from 42% to 39% and the net claim ratio fall from 41% to 13% as compared to the previous year. The Other Reserves changed by HUF -3 million. The Insurer maintains relationships with several reinsurance partners. The Insurer covers its risks by reinsurance in the field of property and technical insurance, liability insurance, carrier and transporter liability insurance, suretyship-related insurance and motor insurance. In connection with this, HUF 537 million were recognized as reinsurers commissions and profit shares. The gross operating costs of the Insurer amount to HUF 1,599 million, of which HUF 370 million are administration cost, HUF 1,143 million are earned acquisition cost, HUF 1 million is investment cost and HUF 85 million are claim settlement cost. Level of acquisition costs (including deferred acquisition costs) increased by HUF 277 million (with 26%) despite the fact that gross earned premium increased by HUF 815 million (with 35%), since products operating with lower acquisition cost ratio (casco) predominate instead of the formerly dominating products with higher acquisition cost ratio (transportation, property, liability). The claim settlement costs decreased significantly by 27% compared to 2014, while the administration costs decreased by 10% compared to 2014. The Other technical expenses line includes the insurance tax, the supervisory fee, MABISZ indemnification account, indemnification fund and the profit sharing. The investment result is a profit of HUF 88 million, consist of mostly interests. The other result line shows the local tax expenses and the innovation contributions. This line also contains the extraordinary depreciation of the systems not in use, impairment for claims against Széchenyi Bank and the MNB charged penalty (HUF 10 million). As a result of the written above, the retained profit is HUF 87 million, which is HUF 353 million better as the retained profit of the previous year. The Insurer s balance sheet total was HUF 3,820 million at the end of December 2015; the Company has met its liabilities in full. On 31 December 2015, the shareholders equity was HUF 1,473 million, the solvency capital of the Insurer available on the balance sheet date was HUF 1,371 million, which covers 120% of the minimum solvency capital requirement. CIG Pannónia First Hungarian General Insurance Company Ltd., information on Q4 2015 6

Annex 1 Presentation of the portfolio of the non-life business line of the Insurer at the end of the period (number) Opening stock on 01.01.2015 New business Closing stock on 31.12.2015 Accident 50 38 71 Illness 5 4 8 Casco 6 526 8 354 11 932 Freight 13 10 18 Damage through fire or disaster 400 106 406 Other damage to assets 254 159 258 Total motor vehicle liability 3 010 721 2 999 Of this: compulsory third party motor insurance 2 199 389 2 141 General liability 10 848 10 300 12 358 Suretyship-related insurance 19 12 29 Total regular-premium policies 21 125 19 704 28 079 Accident 1 3 1 Illness 4 - - Casco 1 112 1 802 2 707 Freight 6 342 5 873 5 902 Other damage to assets 844 306 1 054 Suretyship-related insurance 5 2 486 2 204 Total single premium policies 8 308 10 470 11 868 Total 29 433 30 174 39 947 CIG Pannónia First Hungarian General Insurance Company Ltd., information on Q4 2015 7

Presentation of the stock of the non-life business line of the Insurer at the end of the period thousand HUF Opening stock on 01.01.2015 New business Closing stock on 31.12.2015 Accident 18 490 3 279 19 352 Illness 534 729 1 291 Casco 637 732 933 467 1 256 354 Freight 3 229 492 3 173 Damage through fire or disaster 223 570 102 224 243 578 Other damage to assets 74 088 35 908 69 221 Total motor vehicle liability 237 300 67 953 239 411 Of this: compulsory third party motor insurance 40 855 22 133 40 521 General liability 712 840 656 595 817 503 Suretyship-realated 73 555 87 868 122 310 Funeral insurance 5 603 0 5 285 Total non-life business line: 1 986 941 1 888 515 2 777 478 The Insurer s gross written premium at the end of the period, broken down by insurance sectors Total gross written premium Gross written premium from single premium products thousand HUF Premiums earned Accident 117 697 97 838 115 465 Illness 1 080-92 1 252 Casco 1 380 420 342 682 88 044 Freight 190 756 186 470 136 047 Damage through fire or disaster 163 778 9 377 25 124 Other damage to assets 282 631 285 108 108 113 Total motor vehicle liability 223 918 0 114 331 Of this: compulsory third party motor insurance 39 822 0 77 General liability 861 144 605 218 717 732 Suretyship-realated 433 257 334 347 130 031 Assistance 1 394-22 914 Funeral insurance 5 355 0 5 357 Total non-life business line: 3 661 430 1 860 926 1 442 410 CIG Pannónia First Hungarian General Insurance Company Ltd., information on Q4 2015 8

The Insurer s costs at the end of the period Acquisition costs Administration costs Claim settlement costs Investment costs thousand HUF Total non-life business line 1 142 680 369 717 84 810 1 416 1 598 623 Of this: compulsory third party motor insurance 10 050 4 707 5 410 18 20 185 Total The Insurer s claims paid and services at the end of the period in question, broken down by insurance sectors thousand HUF Claims paid in current period Expected amount of claims to be paid after the relevant period Opening total Closing total at the end of the current quarter Change Accident 55 264 22 775 31 784 9 009 Illness 3 190 12 436 165-12 271 Total Casco 639 398 120 450 263 958 143 508 Land vehicle Casco 639 398 120 450 263 958 143 508 Freight 16 087 25 281 37 949 12 668 Damage through fire or disaster 85 499 33 362 29 756-3 606 Other damage to property 41 438 21 345 12 072-9 273 Total automobile liability 142 245 312 397 232 150-80 247 Self-propelled land vehicle related liability 142 245 312 397 232 150-80 247 Of this compulsory motor third party liability insurance 105 089 256 342 154 669-101 673 General liability 16 122 8 454 34 924 26 470 Guarantee 0 0 0 0 Assistance 359 0 0 0 Funeral insurance 9 500 550 550 0 Total non-life business line: 1 009 102 557 050 643 308 86 258 CIG Pannónia First Hungarian General Insurance Company Ltd., information on Q4 2015 9

Expected amount of claims to be paid after the current period for events that have already occurred but have not yet been reported thousand HUF Claims in current year Opening total Closing total at the end of the current quarter Change Payments Claim reserve IBNR Accident 11 924 16 662 4 738 32 535 14 465 16 034 Illness 2 417 0-2 417 0 0 0 Total Casco 19 071 40 399 21 328 528 951 246 461 40 327 Land vehicle Casco 19 071 40 399 21 328 528 951 246 461 40 327 Freight 13 129 12 778-351 11 260 18 339 12 762 Damage through fire or disaster 9 968 8 787-1 181 46 406 29 332 8 787 Other damage to property 10 318 12 613 2 295 23 982 6 472 12 613 Total automobile liability 150 042 130 597-19 445 27 453 66 579 12 027 Self-propelled land vehicle related liability 150 042 130 597-19 445 27 453 66 579 12 027 Of this compulsory motor third party liability 145 168 126 116-19 052 9 734 12 695 7 546 insurance General liability 17 670 33 004 15 334 11 459 18 733 32 615 Guarantee 1 354 13 863 12 509 0 0 13 863 Assistance 625 92-533 0 0 90 Funeral insurance 327 1-326 8 500 550 1 Total non-life business line: 236 845 268 796 31 951 690 546 400 931 149 119 The Insurer s average number of employees at the end of the period Centre (no. of staff) Network (no. of staff) Senior management 2,2 - Administrators 20,9 - Risk assessors, damage experts and loss administrators 2,3 - Business staff 2,8 - Tied insurance agent - 384,0 Total non-life business line 28,2 384,0 CIG Pannónia First Hungarian General Insurance Company Ltd., information on Q4 2015 10