The Group s shareholders are Cinven, a leading European private equity firm, and Hannover Re, the world s third largest re-insurance group.

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1 Half Year Report 2015

2 Brief Overview Heidelberger Leben Group is a leading specialist for consolidating life insurance companies and the efficient management of insurance portfolios in German-speaking countries. Its consolidation platform business model makes Heidelberger Leben Group a pioneer in the German life insurance market. The more policies that are managed on a single IT and portfolio management platform, the lower the costs per managed policy. Policy holders should profit from the consolidation platform business model through reduced administration costs and benefit in profit participation. In times of challenging market conditions characterised in particular by the continuing low interest rate environment, demographic developments and digitalisation Heidelberger Leben Group plays an important role as a solution provider to a market which is in need of consolidation. The Group s shareholders are Cinven, a leading European private equity firm, and Hannover Re, the world s third largest re-insurance group. In the first six months of 2015 the Heidelberger Leben Group s individual companies managed approximately one million insurance policies and assets of approximately EUR 12.2 billion. Its 500 employees worked together to further the success of the Group. Half Year Report

3 Strategy and achievements With its consolidation platform for inactive life insurance portfolios, Heidelberger Leben Group established a business model that is new to German-speaking markets. The Group has made use of its first mover position and seized the opportunities and the potential to continue the course of growth on which it has embarked. Other providers have announced their desire to enter the market and this highlights its attractiveness and will benefit the broader life insurance industry. In 2015, the focus will be on establishing the platform while ensuring the quality of implementation through structural reorganisations. The following points will be key areas of focus: T Progressing with the establishment of a group-wide IT platform T Ensuring consistently high customer service quality T Risk management processes T Implementing efficient systems and processes T Integration of Heidelberger Lebensversicherung and Skandia Germany Key highlights First half of the year IT The Strategic Platform and Migration Programme sets up the IT foundation for the consolidation and migration of the life insurance portfolios onto the new portfolio management platform. This was divided into individual projects and all modules developed as expected, in accordance with the agreed milestone plan. The budget forecast for the Strategic Platform and Migration Programme, that was approved by the Board of Management and the Supervisory Board in 2014, was met. The first migration of a part of a portfolio to the platform was prepared and delivered immediately after the reporting period in July The transfer of the IT systems of Skandia Germany to the established systems of the Heidelberger Leben Group was successful and met all assumptions. Half Year Report

4 Customer Service Since the middle of the year, the overall service level has been above 90%. A backlog of work at Heidelberger Lebensversicherung, due to the reorganisation, has been addressed by measures targeted at processes. Operations at both Skandia Germany and Skandia Austria ran according to schedule, as did the administrative portfolio of Clerical Medical. Risk The key functions required for reliable, sustainable risk control and governance functions have been strengthened throughout the organisation. The Solvency II Project, which is due to be concluded by the end of 2015, is progressing on schedule. Calculations confirm strong capitalisation of all companies. QRT (Qualitative Reporting Templates) reports and Narrative Reporting were made available to the appropriate regulatory authorities on time. The ORSA process for 2015 is also running to plan and the Group s own conclusions and additional feedback from the regulatory authorities have been taken into account. Half of all the essential guidelines were put into force in the first six months of 2015 and the others are being scheduled for implementation by the end of the year. The Solvency II Project and the IKS Project (internal control system) have made progress as scheduled and should be fully completed by the end of Financials The results achieved during the first half (six months ended 30 June 2015) met our expectations. The investment in new IT and portfolio management platforms was on target and the assets under management exceeded expectations for the first half of the year. These positive developments in the period were also reflected by the TEV (Traditional Embedded Value) of the Heidelberger Leben Group. In addition, the solvency ratios of the risk carriers continued to remain unchanged and significantly above the minimum requirements of the regulator. Half Year Report

5 Outlook Second half of the year IT A number of milestones are on the agenda for the Strategic Platform and Migration Programme, which we expect to complete and make significant progress in the second half of the year. Customer Service With the focus on stabilising operations in recent months, the second half of the year will be focused on the development and implementation of organisational targets, e.g. set up of a group-wide complaints organisation and harmonising processes regarding the assessment of occupational disability cases. Risk T Conclusion of the Solvency II and IKS Projects T Further development of the control mechanisms for allocating risk capital T Measures for strengthening the risk culture and skills development in the Group T Measures for process optimisation Financials Heidelberger Leben Group expects its financial performance to be slightly above plan. This will be measured by the performance of the funds and the efficient management of costs. Half Year Report

6 Published by Heidelberger Leben Holding AG Place of business: Forum 7, Heidelberg, Germany Telephone: Half Year Report