2012 ANNUAL REPORT GRUPO CATALANA OCCIDENTE, S.A. AND SUBSIDIARIES

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Christal Blair
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2 KEY FIGURES OF RECENT YEARS 2012 has been a year marked by an environment of economic weakness and uncertainty with high tensions and a great volatility in the markets. Grupo Catalana Occidente, thanks to the continuous effort and to the strength of its business model, has succeeded in: Key Figures Increasing in the Solvency Margin to 497.5% of the minimum required, with an Available Capital of EUR 1,752.9 million. Reach 200 M of profit attributable Maintain the combined ratio below 90%: 88.0% in the traditional business and 88.4% in credit insurance due to technical rigor and austerity in spending Increase income and turnover Acquire a 49% stake in Plus Ultra Seguros (formerly Groupama Seguros) 6.48% Increase the equity stake of Atradius Getting a ROE of 14.0% Keep shareholder remuneration Below are the key economic figures for Grupo Catalana Occidente over the past five years. KEY FIGURES A B C (million of euros) % Chg REVENUES - PREMIUMS 3, , , , , % - INFORMATION INCOME % INSURANCE TURNOVER 3, , , , , % - INCOME FROM COMPLIMENTARY ACTIVITIES CREDIT INS % TOTAL REVENUES 3, , , , , % CONSOLIDATED PROFIT PROFIT AFTER TAX % PROFIT ATTRIBUTABLE TO MINORITY INTERESTS % PROFIT ATTRIBUTABLE TO EQUITY HOLDERS OF THE PAR % LONG TERM EQUITY - LONG TERM SHAREHOLDERS' CAPITAL 1, , , , , % - SUBORDINATED LIABILITIES % LONG TERM EQUITY 1, , , , , % LONG TERM EQUTY MARKET VALUE 2, , , , , % D TECHNICAL PROVISIONS 7, , , , , % E SOLVENCY I - AVAILABLE CAPITAL 2, , , , , % -REQUIRED CAPITAL % -EXCESS OF SOLVENCY 1, , , , , % % SOLVENCY I 377.1% 426.2% 470.9% 489.7% 497.5% 1.6% F TOTAL FUNDS UNDER MANAGEMENT 7, , , , , % G PER SHARE DATA (in euros) PROFIT ATTRIBUTABLE % DIVIDEND PER SHARE % PAY-OUT (%) 58.3% 60.2% 33.6% 32.5% 34.2% SHARE REVALUATION -36.7% 8.3% -18.0% -4.7% 12.2% H OTHER DATA Nº EMPLOYEES 6,512 6,114 5,800 5,656 5, % Nº OFFICES 1,178 1,179 1,195 1,192 1, % Letter to Shareholders Grupo Catalana Occidente Management Report Condolidated Financial Statements Notes to the Statements Auditors Report on Statments Corporate Governance Report 4

3 LETTER TO SHAREHOLDERS Dear shareholder, We close another year marked by difficulty, economic downturn, hardships and volatility in the financial markets. From our Group s perspective, we regard our performance in this period to have been largely positive. We have have made clear progress in the implementation of our strategy. Not only have we maintained our turnover level, recurrence in results and excess solvency, but we have also undertaken two corporate transactions that consolidate Grupo Catalana Occidente as one of the main independent insurance entities. On one hand, our acquisition of Atradius NV, completed in 2012, has given us a global presence and established us as credit insurance leaders. On the other hand, the acquisition of Plus Ultra (formerly Groupama Seguros) in 2012, which I will discuss in more detail below, contributes to improving our Group s business diversification and will help us consolidate our leadership position in the Spanish market. In short, seeing where we have arrived, we are convinced of the soundness of our business model and hope to continue growing in profitably and solvency. In 2012, not oblivious to the complex market situation, our Group has maintained revenues at EUR 3,200 million and has seen EUR 200 million in net profit. Permanent resources at market value stand at EUR 2,300 million and the solvency level stands at 497%, with a surplus of EUR 1,700 million. Our traditional business has achieved premiums of EUR 1,612.5 million, 2.7% less than in the previous year, although they perform better than the market, which is dropping by 5.3%. Results have been positive. The combined ratio continues to improve and is currently just below 90%, 88.8% to be precise, thanks to cost control and, above all, favourable claims development, as a result of appropriate technical management. With all this, the traditional business brings EUR million to our recurring profit. The credit insurance business also ended the year strongly. Insurance revenues increased by 3.6% to reach EUR 1,565.0 million. Credit flow difficulties have caused an increase in defaults and, consequently, the number of claims, although the Group has managed to protect the combined ratio, closing the year at 88.4%. This business contributes EUR million to the recurring profit. 5

4 Grupo Catalana Occidente maintains the dividend one more year. The Board of Directors has proposed that the supplementary dividend is the same amount paid out in the previous year, thereby obtaining a total dividend amounting to EUR million, assuming a payout of 34.2% and a dividend yield of 4.1%. Thanks to the recurrence of results and our cautious investment policy, permanent resources have increased. This has meant that in 2012 the Group has acquired, with its own funds, 6.48% of Atradius shares, bringing its stake to 83.2%, and 49% of Plus Ultra s share capital. The Group has been attentive to market opportunities, as our history over the last decade shows. Currently, with the difficulty of growing organically in a crisis environment, the acquisition of Plus Ultra is a great opportunity. The company has a turnover of around EUR 850 million, with a balanced portfolio, primarily selling through brokers. This transaction will allow us to take a quantum leap in our business volume, from a turnover of EUR 3,200 million to more than EUR 4,000 million. We are convinced that we will be able to improve its profitability by leveraging business knowledge and sharing best management practices. In the area of corporate responsibility we have continued to strengthen our commitment, especially on the social side people. Grupo Catalana Occidente has maintained the size of its workforce and, through the Jesús Serra Foundation, we have carried out intense sponsorship activity and social progress promotion. The economic difficulties we faced in 2012 are expected to continue in However, we remain confident that we can consolidate our position in the market, allowing sustainable increase in profitability and increased customer and shareholder value. In closing, I would like to thank you again for your trust and support, and that of our agents and policyholders. All of us here at Grupo Catalana Occidente remain committed to improving our ability to deliver results and create value in the medium and long term. Jose María Serra President of Grupo Catalana Occidente 6

Key Figures Letter to Shareholders GRUPO CATALANA OCCIDENTE The history of Grupo Catalana Occidente dates back to 1864.

5 Key Figures Letter to Shareholders GRUPO CATALANA OCCIDENTE The history of Grupo Catalana Occidente dates back to Currently, Grupo Catalana Occidente is the tenth largest operator in the Spanish market and the second global player in the credit insurance business, with a presence in more than 40 countries. Over the last decade the Group has progressed well on all key indicators by maintaining sustainable and profitable growth. The shares of the parent company, Grupo Catalana Occidente, are listed on the continuous market of the Barcelona and Madrid stock exchanges as part of the IBEX Medium Cap Index. Currently, 38% of its capital is floating and the main shareholder is INOC, S.A., holding 56.71% of capital. Over 145 years of history Grupo Catalana Occidente Management Report Condolidated Financial Statements Notes to the Statements Auditors Report on Statments An independent Group A pure insurer A portfolio that includes all lines and products EUR 3,200 million in turnover EUR 223 million in consolidated profit Long-Term capital at market value of EUR 2,300 million EUR 7,800 million in funds under management 14.0% ROE Characteristics Focused on Spain Families and small and medium enterprises Professional agency network Traditional business 2,476 employees 1,070 offices Lines of Business Multirisk Auto Other Non-Life Life and Financial products Health Funeral Corporate Governance Report Credit insurance business Presence in more than 40 countries Companies Agents and Brokers 3,122 employees 116 offices Credit insurance Bonding Credit reinsurance 7

6 01 The consolidated Grupo Catalana Occidente is mainly composed of companies involved in the insurance business. The parent company is Grupo Catalana Occidente S.A., which directly and indirectly administers and manages the investments of all the companies of the Group. The following table lists the companies that comprise the scope of consolidation of Grupo Catalana Occidente, the Group's total ownership interest in each one and the main activity of each entity. GRUPO CATALANA OCCIDENTE Parent Company Key Figures Letter to Shareholders Seguros Catalana Occidente Tecniseguros Menéndez Pelayo, SICAV 100% 100% 100% Seguros Bilbao Prepersa, AIE Catoc Sicav 99.73% 100% 97.01% Atradius NV (*) S. Órbita Seguros Bilbao Fondos 83.20% 99.73% 99.73% Nortehispana Bilbao Vida Bilbao Hipotecaria 99.78% 99.73% 99.73% Depsa Bilbao Telemark Grupo Crédito y Caución, SL 100% 99.73% 73.84% Catoc Vida Co Capital Ag. Valores Salerno % 100% 100% Cosalud GCO de Servicios Tecnológicos, AIE 100% 99.78% Depsa Servicios y Gestión Legal, SL 100% Catalana de Tall. y Rep , SL 100% Grupo Contact Center AIE 99.78% Inversions Catalana Occident, SA 49.00% Plus Ultra Seguros (**) Asitur Asistencia Hercasol Sicav 49.00% 28.53% 71.42% Calboquer Gesiuris 20.00% 26.12% Sersanet 25.00% Grupo Catalana Occidente Management Report Condolidated Financial Statements Notes to the Statements INSURANCE COMPANIES Fully consolidated companies Equity consolidated associated COMPLEMENTARY TO INSURANCE ACTIVITIES INVESTMENT COMPANIES Auditors Report on Statments (*) Grupo Catalana Occidente s economic stake in Atradius NV has increased by 6.48% compared to last year, reaching 83.20% thanks to the partial exercise of the call option to INOC, SA as described in the "Summary of significant events" section. (**) On the 28th. September the acquisition of a stake of the 49% on Groupama Seguros (now Plus Ultra Seguros) was finalized, as described in the Summary of Significant Events section. Corporate Governance Report 8

RESULTS REPORT January to September 2012

RESULTS REPORT January to September 2012 Informe 1er. Trimestre 2009 Grupo Catalana Occidente, S.A. SUBSIDIARIES y Sociedades Dependientes GRUPO CATALANA OCCIDENTE, S.A AND INFORME 3 MESES GRUPO CATALANA