Life Insurance in Venezuela, Key Trends and Opportunities to 2017

Life Insurance in Venezuela, Key Trends and Opportunities to 2017 Market Intelligence Report Reference code: IS0467MR Published: December 2013 www.timetric.com Timetric John Carpenter House 7 Carmelite Street London EC4Y 0BS United Kingdom Tel: +44 (0)20 7936 6400 Fax: +44 (0)20 7336 6813 www.timetric.com

EXECUTIVE SUMMARY 1 Executive Summary The life segment accounted for the lowest share of the Venezuelan insurance industry during the review period (2008 2012). It did, however, register significant growth, which indicates an increase in public awareness of the benefits of life insurance. Funeral insurance, which was made compulsory for retirees, pensioners, the disabled and low-income families, also contributed to the growth. The life segment posted a review-period CAGR of 26.6%. Regulatory changes and an increase in consumer confidence will support growth over the forecast period (2012 2017); the segment is expected post a forecast-period CAGR of 27.6%. Life insurance in Venezuela is predominantly distributed through agencies and brokers. Agencies accounted for 46.9% and brokers for 32.7% of the segment s overall new business written premiums in 2012. The segment is expected to reach a projected value of VEF6.9 billion (US$0.5 billion) in 2017, due to gradual growth in purchasing power and public awareness. Compulsory life insurance Regulatory changes made some classes of insurance compulsory. In the life segment, funeral insurance was made mandatory for retirees, pensioners, the disabled and low-income families. This is expected to drive growth and increase penetration rates. People aged over 65 years accounted for around 6% of the total population in 2012 and a large proportion of the country s demographic are low-income families. Low life insurance penetration At 0.12% in 2012, Venezuelan life insurance has one of the lowest penetration rates in Latin America, which provides growth opportunities over the forecast period. New legislation which makes funeral insurance mandatory is expected to stabilize penetration rates. Due to the low penetration rate, foreign insurers are expected to enter the segment, which will increase competition. Growth of bancassurance Bancassurance is expected to post a forecast-period CAGR of 28.0% in terms of new business written premium. However, growth is expected to be restricted by a change in the regulatory framework limiting the use of banks as distribution channels. The channel s market share is, however, expected to increase at the expense of direct marketing and other distribution channels, whose share is expected to decline over the forecast period, while bancassurance s share is expected to increase from 5.9% to 6.4%. Life Insurance in Venezuela, Key Trends and Opportunities to 2017 Page 2

1 Executive Summary... 2 2 Introduction... 13 2.1 What is this Report About?... 13 2.2 Definitions... 13 2.3 Methodology... 15 3 Regional Market Dynamics... 17 3.1 Overview... 17 3.1.1 Market trends... 18 3.1.2 Market size... 21 4 Life Insurance Segment Regional Benchmarking... 22 4.1 Scale and Penetration... 22 4.1.1 Total gross written premium... 22 4.1.2 Premium per capita... 24 4.1.3 Life insurance penetration (as a percentage of GDP)... 25 4.2 Growth... 26 4.2.1 Gross written premium... 26 4.2.2 Gross written premium per capita... 27 4.3 Efficiency and Risk... 28 4.3.1 Loss ratio... 28 4.3.2 Combined ratio... 29 4.3.3 Incurred losses per capita... 30 4.3.4 Incurred losses as a percentage of GDP... 31 4.4 Distribution Channels... 32 4.4.1 Direct marketing... 32 4.4.2 Bancassurance... 33 4.4.3 Agencies... 34 5 Venezuelan Insurance Industry Attractiveness... 35 5.1 Insurance Industry Size, 2008 2017... 36 5.2 Key Industry Trends and Drivers... 40 6 Life Insurance Outlook... 41 6.1 Life Insurance Growth Prospects by Category... 42 6.1.1 Individual life insurance... 74 6.1.2 Individual general annuity insurance... 78 6.1.3 Other individual life insurance... 82 6.1.4 Group life insurance... 86 6.2 Life Insurance Growth Prospects by Product Type... 90 6.2.1 Individual single-premium policies... 90 6.2.2 Individual non-single-premium policies... 94 6.2.3 Group single-premium policies... 98 Life Insurance in Venezuela, Key Trends and Opportunities to 2017 Page 3

6.2.4 Group non-single-premium policies... 102 7 Analysis by Distribution Channel... 106 7.1 Direct Marketing... 108 7.2 Bancassurance... 116 7.3 Agencies... 124 7.4 E-Commerce... 132 7.5 Brokers... 140 7.6 Other Channels... 148 8 Porter s Five Forces Analysis Venezuelan Life Insurance... 156 8.1 Bargaining Power of Supplier: Medium... 156 8.2 Bargaining Power of Buyer: Medium to High... 156 8.3 Barriers to Entry: Medium to High... 157 8.4 Intensity of Rivalry: High... 157 8.5 Threat of Substitutes: Low... 157 9 Reinsurance Growth Dynamics and Challenges... 158 9.1 Reinsurance Segment Size, 2008 2017... 159 9.2 Reinsurance Segment Size by Type of Insurance, 2008 2017... 163 10 Regulatory Policies... 168 11 Competitive Landscape and Strategic Insights... 170 11.1 Overview... 170 11.2 Leading Companies in the Venezuelan Life Insurance Segment... 171 11.3 Comparison of Top Five Insurers... 172 11.3.1 Gross written premium... 172 11.3.2 Paid claims... 173 11.3.3 Incurred Loss... 174 11.4 Seguros Horizonte CA Company Overview... 175 11.4.1 Seguros Horizonte CA key facts... 175 11.4.2 Seguros Horizonte CA key financials... 175 11.5 Seguros la Fe CA Company Overview... 176 11.5.1 Seguros la Fe CA Key Facts... 176 11.5.2 Seguros la Fe CA key financials... 176 11.6 Zurich Seguros SA Company Overview... 177 11.6.1 Zurich Seguros, SA key facts... 177 11.6.2 Zurich Seguros, SA key financials... 177 11.7 Banesco Seguros CA Company Overview... 178 11.7.1 Banesco Seguros CA key facts... 178 11.7.2 Banesco Seguros CA key financials... 178 11.8 Seguros Mercantil CA Company Overview... 179 11.8.1 Seguros Mercantil CA key facts... 179 11.8.2 Seguros Mercantil CA key financials... 179 Life Insurance in Venezuela, Key Trends and Opportunities to 2017 Page 4

11.9 Seguros Provincial CA Company Overview... 180 11.9.1 Seguros Provincial CA key facts... 180 11.9.2 Seguros Provincial CA key financials... 180 11.10 CNA de Seguros La Previsora Company Overview... 181 11.10.1 CNA de Seguros La Previsora key facts... 181 11.10.2 CNA de Seguros La Previsora key financials... 181 11.11 CA de Seguros La Occidental Company Overview... 182 11.11.1 CA de Seguros La Occidental key facts... 182 11.11.2 CA de Seguros La Occidental key financials... 182 11.12 Mapfre La Seguridad CA de Seguros Company Overview... 183 11.12.1 Mapfre La Seguridad CA de Seguros key facts... 183 11.12.2 Mapfre La Seguridad CA de Seguros key financials... 183 11.13 Seguros Caracas de Liberty Mutual, CA Company Overview... 184 11.13.1 Seguros Caracas de Liberty Mutual, CA key facts... 184 11.13.2 Seguros Caracas de Liberty Mutual, CA key financials... 184 12 Business Environment and Country Risk... 185 12.1 Business Confidence... 185 12.1.1 Market capitalization trend Bolsa de Valores de Caracas, Venezuela... 185 12.2 Economic Performance... 186 12.2.1 GDP at constant prices (US$)... 186 12.2.2 GDP per capita at constant prices (US$)... 187 12.2.3 GDP at current prices (US$)... 188 12.2.4 GDP per capita at current prices (US$)... 189 12.2.5 GDP by key segments... 190 12.2.6 Agriculture net output at current prices (US$)... 191 12.2.7 Agricultural net output at current prices as a percentage of GDP... 192 12.2.8 Manufacturing net output at current prices (US$)... 193 12.2.9 Manufacturing net output at current prices as a percentage of GDP... 194 12.2.10 Mining, manufacturing and utilities at current prices (US$)... 195 12.2.11 Mining, manufacturing and utilities at current prices, as percentage of GDP... 196 12.2.12 Construction net output at current prices, (US$)... 197 12.2.13 Construction net output at current prices as a percentage of GDP... 198 12.2.14 Inflation rate... 199 12.2.15 Exports as a percentage of GDP... 200 12.2.16 Imports as a percentage of GDP... 201 12.2.17 Exports growth... 202 12.2.18 Imports growth... 203 12.2.19 Annual average exchange rate VEF US$... 204 12.3 Infrastructure Quality and Availability... 205 12.3.1 Commercial vehicles exports total value... 205 12.3.2 Commercial vehicles imports total value... 206 12.3.3 Automotive exports total value... 207 Life Insurance in Venezuela, Key Trends and Opportunities to 2017 Page 5

12.3.4 Automotive imports total value... 208 12.3.5 Total internet subscribers... 209 12.4 Labor Force... 210 12.4.1 Labor force... 210 12.4.2 Unemployment rate... 211 12.5 Demographics... 212 12.5.1 Gross national disposable income (US$)... 212 12.5.2 Household consumption expenditure (US$)... 213 12.5.3 Total population... 214 12.5.4 Urban and rural populations... 215 12.5.5 Age distribution of the total population... 216 13 Appendix... 217 13.1 Methodology... 217 13.2 Contact Timetric... 217 13.3 About Timetric... 217 13.4 Timetric s Services... 218 13.5 Disclaimer... 219 Life Insurance in Venezuela, Key Trends and Opportunities to 2017 Page 6

LIST OF FIGURES Figure 1: Central and Latin America A Snapshot of the Economies and Populations, 2011... 17 Figure 2: Central and Latin America Growth Trends in the Insurance Industry... 18 Figure 3: Central and Latin America Total Industry Values by Segment (US$ Billion), 2011... 21 Figure 4: Central and Latin American Life Insurance Gross Written Premiums (US$ Billion), 2011... 23 Figure 5: Central and Latin American Life Insurance Premium Per Capita (US$), 2011... 24 Figure 6: Central and Latin American Life Insurance Penetration as a Percentage of GDP (%), 2011 and 2016... 25 Figure 7: Central and Latin American Life Insurance Gross Written Premium Growth (%), 2007 2016... 26 Figure 8: Central and Latin American Life Insurance Gross Written Premium Per Capita Growth (%), 2007 2016... 27 Figure 9: Central and Latin American Life Insurance Loss Ratios (%), 2011 and 2016... 28 Figure 10: Central and Latin American Life Insurance Combined Ratios (%), 2011 and 2016... 29 Figure 11: Central and Latin American Life Insurance Incurred Losses Per Capita (US$), 2011 and 2016... 30 Figure 12: Central and Latin American Life Insurance Incurred Losses as a Percentage of GDP (%), 2011 and 2016... 31 Figure 13: Central and Latin American Direct Marketing Share of Life Insurance New Business Gross Written Premium (%), 2007 2016 32 Figure 14: Central and Latin American Bancassurance Share of Life Insurance New Business Gross Written Premium (%), 2007 2016. 33 Figure 15: Central and Latin American Agencies Share of Life Insurance New Business Gross Written Premium (%), 2007 2016... 34 Figure 16: Venezuelan Insurance Overall Written Premium by Segment (VEF Billion), 2008 2017... 38 Figure 17: Venezuelan Insurance Dynamics by Segment (%), 2008 2017... 39 Figure 18: Venezuelan Life Insurance Written Premium by Category (VEF Million), 2008 2017... 44 Figure 19: Venezuelan Life Insurance Written Premium by Category (Percentage Share), 2012 and 2017... 44 Figure 20: Venezuelan Life Insurance Dynamics by Category, 2008 2017... 45 Figure 21: Venezuelan Life Insurance Earned Premium (VEF Million), 2008 2012... 46 Figure 22: Venezuelan Life Insurance Earned Premium (VEF Million), 2012 2017... 47 Figure 23: Venezuelan Life Insurance Sum Assured (VEF Billion), 2008 2012... 48 Figure 24: Venezuelan Life Insurance Sum Assured (VEF Trillion), 2012 2017... 49 Figure 25: Venezuelan Life Insurance Paid Claims (VEF Million), 2008 2012... 50 Figure 26: Venezuelan Life Insurance Paid Claims (VEF Million), 2012 2017... 51 Figure 27: Venezuelan Life Insurance Incurred Loss (VEF Million), 2008 2012... 52 Figure 28: Venezuelan Life Insurance Incurred Loss (VEF Million), 2012 2017... 53 Figure 29: Venezuelan Life Insurance Loss Ratio (%), 2008 2012... 54 Figure 30: Venezuelan Life Insurance Loss Ratio (%), 2012 2017... 55 Figure 31: Venezuelan Life Insurance Commissions and Expenses (VEF Million), 2008 2012... 56 Figure 32: Venezuelan Life Insurance Commissions and Expenses (VEF Million), 2012 2017... 57 Figure 33: Venezuelan Life Insurance Combined Ratio (%), 2008 2012... 58 Figure 34: Venezuelan Life Insurance Combined Ratio (%), 2012 2017... 59 Figure 35: Venezuelan Life Insurance Frauds and Crimes (VEF Million), 2008 2012... 60 Figure 36: Venezuelan Life Insurance Frauds and Crimes (VEF Million), 2012 2017... 61 Figure 37: Venezuelan Life Insurance Total Assets (VEF Million), 2008 2012... 62 Figure 38: Venezuelan Life Insurance Total Assets (VEF Million), 2012 2017... 63 Figure 39: Venezuelan Life Insurance Total Investment Income (VEF Million), 2008 2012... 64 Figure 40: Venezuelan Life Insurance Total Investment Income (VEF Million), 2012 2017... 65 Figure 41: Venezuelan Life Insurance Retentions (VEF Million), 2008 2012... 66 Figure 42: Venezuelan Life Insurance Retentions (VEF Million), 2012 2017... 67 Figure 43: Venezuelan Life Insurance Investment Portfolio (VEF Million), 2008 2012... 68 Figure 44: Venezuelan Life Insurance Investment Portfolio, 2008 and 2012... 68 Figure 45: Venezuelan Life Insurance Penetration (%), 2008 2012... 69 Figure 46: Venezuelan Life Insurance Density (Number of Policies per Capita), 2008 2012... 70 Figure 47: Venezuelan Life Insurance Number of Active Policies (Thousand), 2008 2012... 71 Figure 48: Venezuelan Life Insurance Number of Active Policies (Thousand), 2012 2017... 72 Figure 49: Venezuelan Life Insurance Premium Per Capita (VEF), 2008 2012... 73 Figure 50: Venezuelan Individual Life Insurance Number of Active Policies (Thousand), 2008 2012... 74 Figure 51: Venezuelan Individual Life Insurance Number of Active Policies (Thousand), 2012 2017... 75 Figure 52: Venezuelan Individual Life Insurance Written Premium (VEF Million), 2008 2012... 76 Figure 53: Venezuelan Individual Life Insurance Written Premium (VEF Million), 2012 2017... 77 Figure 54: Venezuelan Individual General Annuity Insurance Number of Active Policies (Thousand), 2008 2012... 78 Figure 55: Venezuelan Individual General Annuity Insurance Number of Active Policies (Thousand), 2012 2017... 79 Figure 56: Venezuelan Individual General Annuity Insurance Written Premium (VEF Million), 2008 2012... 80 Figure 57: Venezuelan Individual General Annuity Insurance Written Premium (VEF Million), 2012 2017... 81 Figure 58: Venezuelan Other Individual Insurance Number of Active Policies (Thousand), 2008 2012... 82 Figure 59: Venezuelan Other Individual Insurance Number of Active Policies (Thousand), 2012 2017... 83 Figure 60: Venezuelan Other Individual Insurance Written Premium (VEF Million), 2008 2012... 84 Figure 61: Venezuelan Other Individual Insurance Written Premium (VEF Million), 2012 2017... 85 Figure 62: Venezuelan Group Life Insurance Number of Active Policies (Thousand), 2008 2012... 86 Figure 63: Venezuelan Group Life Insurance Number of Active Policies (Thousand), 2012 2017... 87 Life Insurance in Venezuela, Key Trends and Opportunities to 2017 Page 7

Figure 64: Venezuelan Group Life Insurance Written Premium (VEF Million), 2008 2012... 88 Figure 65: Venezuelan Group Life Insurance Written Premium (VEF Million), 2012 2017... 89 Figure 66: Venezuelan Individual Single-Premium Insurance Number of Active Policies (Thousand), 2008 2012... 90 Figure 67: Venezuelan Individual Single-Premium Insurance Number of Active Policies (Thousand), 2012 2017... 91 Figure 68: Venezuelan Individual Single-Premium Insurance Written Premium (VEF Million), 2008 2012... 92 Figure 69: Venezuelan Individual Single-Premium Insurance Written Premium (VEF Million), 2012 2017... 93 Figure 70: Venezuelan Individual Non-Single-Premium Insurance Number of Active Policies (Thousand), 2008 2012... 94 Figure 71: Venezuelan Individual Non-Single-Premium Insurance Number of Active Policies (Thousand), 2012 2017... 95 Figure 72: Venezuelan Individual Non-Single-Premium Insurance Written Premium (VEF Million), 2008 2012... 96 Figure 73: Venezuelan Individual Non-Single-Premium Insurance Written Premium (VEF Million), 2012 2017... 97 Figure 74: Venezuelan Group Single-Premium Insurance Number of Active Policies (Thousand), 2008 2012... 98 Figure 75: Venezuelan Group Single-Premium Insurance Number of Active Policies (Thousand), 2012 2017... 99 Figure 76: Venezuelan Group Single-Premium Insurance Written Premium (VEF Million), 2008 2012... 100 Figure 77: Venezuelan Group Single-Premium Insurance Written Premium (VEF Million), 2012 2017... 101 Figure 78: Venezuelan Group Non-Single-Premium Insurance Number of Active Policies (Thousand), 2008 2012... 102 Figure 79: Venezuelan Group Non-Single-Premium Insurance Number of Active Policies (Thousand), 2012 2017... 103 Figure 80: Venezuelan Group Non-Single-Premium Insurance Written Premium (VEF Million), 2008 2012... 104 Figure 81: Venezuelan Group Non-Single-Premium Insurance Written Premium (VEF Million), 2012 2017... 105 Figure 82: Venezuelan Life Insurance New Business Written Premium by Distribution Channel (Percentage Share), 2012 and 2017... 107 Figure 83: Venezuelan Life Insurance Direct Marketing Commission Paid (VEF Million), 2008 2012... 108 Figure 84: Venezuelan Life Insurance Direct Marketing Commission Paid (VEF Million), 2012 2017... 109 Figure 85: Venezuelan Life Insurance New Business Written Premium Through Direct Marketing (VEF Million), 2008 2012... 110 Figure 86: Venezuelan Life Insurance New Business Written Premium Through Direct Marketing (VEF Million), 2012 2017... 111 Figure 87: Venezuelan Life Insurance New Policies Sold Through Direct Marketing (Thousand), 2008 2012... 112 Figure 88: Venezuelan Life Insurance New Policies Sold Through Direct Marketing (Thousand), 2012 2017... 113 Figure 89: Venezuelan Life Insurance Number of Direct Marketing Distributors, 2008 2012... 114 Figure 90: Venezuelan Life Insurance Number of Direct Marketing Distributors, 2012 2017... 115 Figure 91: Venezuelan Life Insurance Bancassurance Commission Paid (VEF Million), 2008 2012... 116 Figure 92: Venezuelan Life Insurance Bancassurance Commission Paid (VEF Million), 2012 2017... 117 Figure 93: Venezuelan Life Insurance New Business Written Premium Through Bancassurance (VEF Million), 2008 2012... 118 Figure 94: Venezuelan Life Insurance New Business Written Premium Through Bancassurance (VEF Million), 2012 2017... 119 Figure 95: Venezuelan Life Insurance New Policies Sold Through Bancassurance (Thousand), 2008 2012... 120 Figure 96: Venezuelan Life Insurance New Policies Sold Through Bancassurance (Thousand), 2012 2017... 121 Figure 97: Venezuelan Life Insurance Number of Bancassurance Distributors, 2008 2012... 122 Figure 98: Venezuelan Life Insurance Number of Bancassurance Distributors, 2012 2017... 123 Figure 99: Venezuelan Life Insurance Commission Paid to Agencies (VEF Million), 2008 2012... 124 Figure 100: Venezuelan Life Insurance Commission Paid to Agencies (VEF Million), 2012 2017... 125 Figure 101: Venezuelan Life Insurance New Business Written Premium Through Agencies (VEF Million), 2008 2012... 126 Figure 102: Venezuelan Life Insurance New Business Written Premium Through Agencies (VEF Million), 2012 2017... 127 Figure 103: Venezuelan Life Insurance New Policies Sold Through Agencies (Thousand), 2008 2012... 128 Figure 104: Venezuelan Life Insurance New Policies Sold Through Agencies (Thousand), 2012 2017... 129 Figure 105: Venezuelan Life Insurance Number of Agencies, 2008 2012... 130 Figure 106: Venezuelan Life Insurance Number of Agencies, 2012 2017... 131 Figure 107: Venezuelan Life Insurance E-Commerce Commission Paid (VEF Million), 2008 2012... 132 Figure 108: Venezuelan Life Insurance E-Commerce Commission Paid (VEF Million), 2012 2017... 133 Figure 109: Venezuelan Life Insurance New Business Written Premium Through E-Commerce (VEF Million), 2008 2012... 134 Figure 110: Venezuelan Life Insurance New Business Written Premium Through E-Commerce (VEF Million), 2012 2017... 135 Figure 111: Venezuelan Life Insurance New Policies Sold Through E-Commerce (Thousand), 2008 2012... 136 Figure 112: Venezuelan Life Insurance New Policies Sold Through E-Commerce (Thousand), 2012 2017... 137 Figure 113: Venezuelan Life Insurance Number of E-Commerce Distributors, 2008 2012... 138 Figure 114: Venezuelan Life Insurance Number of E-Commerce Distributors, 2012 2017... 139 Figure 115: Venezuelan Life Insurance Commission Paid to Brokers (VEF Million), 2008 2012... 140 Figure 116: Venezuelan Life Insurance Commission Paid to Brokers (VEF Million), 2012 2017... 141 Figure 117: Venezuelan Life Insurance New Business Written Premium Through Brokers (VEF Million), 2008 2012... 142 Figure 118: Venezuelan Life Insurance New Business Written Premium Through Brokers (VEF Million), 2012 2017... 143 Figure 119: Venezuelan Life Insurance New Policies Sold Through Brokers (Thousand), 2008 2012... 144 Figure 120: Venezuelan Life Insurance New Policies Sold Through Brokers (Thousand), 2012 2017... 145 Figure 121: Venezuelan Life Insurance Number of Brokers, 2008 2012... 146 Figure 122: Venezuelan Life Insurance Number of Brokers, 2012 2017... 147 Figure 123: Venezuelan Life Insurance Commission Paid to Other Channels (VEF Million), 2008 2012... 148 Figure 124: Venezuelan Life Insurance Commission Paid to Other Channels (VEF Million), 2012 2017... 149 Figure 125: Venezuelan Life Insurance New Business Written Premium Through Other Channels (VEF Million), 2008 2012... 150 Figure 126: Venezuelan Life Insurance New Business Written Premium Through Other Channels (VEF Million), 2012 2017... 151 Figure 127: Venezuelan Life Insurance New Policies Sold Through Other Channels (Thousand), 2008 2012... 152 Figure 128: Venezuelan Life Insurance New Policies Sold Through Other Channels (Thousand), 2012 2017... 153 Figure 129: Venezuelan Life Insurance Number of Distributors in Other Channels, 2008 2012... 154 Life Insurance in Venezuela, Key Trends and Opportunities to 2017 Page 8

Figure 130: Venezuelan Life Insurance Number of Distributors in Other Channels, 2012 2017... 155 Figure 131: Venezuelan Life Insurance Porter s Five Forces Analysis... 156 Figure 132: Venezuelan Premium Ceded to Reinsurance by Category (VEF Billion), 2008 2017... 161 Figure 133: Venezuelan Premium Ceded to Reinsurance by Category (Percentage Share), 2012 and 2017... 161 Figure 134: Venezuelan Reinsurance Dynamics by Category (%), 2008 2017... 162 Figure 135: Venezuelan Premium Ceded to Reinsurance by Type of Insurance (VEF Billion), 2008 2017... 165 Figure 136: Venezuelan Reinsurance Dynamics by Type of Insurance (%), 2008 2017... 165 Figure 137: Venezuelan Life Insurance Percentage of Reinsurance Ceded (%), 2008 2012... 166 Figure 138: Venezuelan Life Insurance Percentage of Reinsurance Ceded (%), 2012 2017... 167 Figure 139: Shares of Key Insurers in the Venezuelan Life Insurance Segment (%), 2012... 171 Figure 140: Gross Written Premium Top Five Venezuelan Life Insurers, 2012... 172 Figure 141: Paid Claims Top Five Venezuelan Life Insurers, 2012... 173 Figure 142: Incurred Loss Top Five Venezuelan Life Insurers, 2012... 174 Figure 143: Venezuelan Stock Exchange Market Capitalization (US$ Billion), 2009 2012... 185 Figure 144: Venezuelan GDP at Constant Prices (US$ Billion), 2008 2012... 186 Figure 145: Venezuelan GDP Per Capita at Constant Prices (US$), 2008 2012... 187 Figure 146: Venezuelan GDP at Current Prices (US$ Billion), 2008 2012... 188 Figure 147: Venezuelan GDP Per Capita at Current Prices (US$), 2008 2012... 189 Figure 148: Venezuelan GDP by Key Segments (%) 2007 and 2011... 190 Figure 149: Venezuelan Agriculture Net Output At Current Prices (US$ Billion), 2007 2011... 191 Figure 150: Venezuelan Agricultural Net Output at Current Prices as a Percentage of GDP (%), 2007 2011... 192 Figure 151: Venezuelan Manufacturing Net Output at Current Prices (US$ Billion), 2007 2011... 193 Figure 152: Venezuelan Manufacturing Net Output at Current Prices as a Percentage of GDP (%), 2007 2011... 194 Figure 153: Venezuelan Mining, Manufacturing and Utilities Net Output at Current Prices (US$ Billion), 2007 2011... 195 Figure 154: Venezuelan Mining, Manufacturing and Utilities Net Output at Current Prices as a Percentage of GDP (%), 2007 2011... 196 Figure 155: Venezuelan Construction Net Output at Current Prices (US$ Billion), 2007 2011... 197 Figure 156: Venezuelan Construction Output at Current Prices as a Percentage of GDP (%), 2007 2011... 198 Figure 157: Venezuelan Inflation Rate (%), 2009 2012... 199 Figure 158: Venezuelan Exports as a Percentage of GDP (%), 2007 2011... 200 Figure 159: Venezuelan Imports as a Percentage of GDP (%), 2007 2011... 201 Figure 160: Venezuelan Exports Growth (%), 2008 2011... 202 Figure 161: Venezuelan Imports Growth (%), 2008 2011... 203 Figure 162: Venezuelan Annual Average Exchange Rate US$ PHP, 2008 2012... 204 Figure 163: Venezuelan Commercial Vehicles Exports Total Value (US$ Billion), 2008 2011... 205 Figure 164: Venezuelan Commercial Vehicles Imports Total Value (US$ Billion), 2008 2011... 206 Figure 165: Venezuelan Automotive Exports Total Value (US$ Billion), 2008 2011... 207 Figure 166: Venezuelan Automotive Imports Total Value (US$ Billion), 2008 2011... 208 Figure 167: Venezuelan Internet Subscriptions (Millions), 2007 2011... 209 Figure 168: Venezuelan Size of Labor Force (Million), 2007 2011... 210 Figure 169: Venezuelan Unemployment Rate (%), 2008 2012... 211 Figure 170: Venezuelan Gross National Disposable Income (US$ Billion), 2007 2011... 212 Figure 171: Venezuelan Household Consumption Expenditure (US$ Billion), 2007 2011... 213 Figure 172: Venezuelan Total Population (Million), 2008 2012... 214 Figure 173: Venezuelan Urban and Rural Populations (%), 2008 2012... 215 Figure 174: Venezuelan Population Distribution by Age (%), 2008 2012... 216 Life Insurance in Venezuela, Key Trends and Opportunities to 2017 Page 9

LIST OF TABLES Table 1: Insurance Industry Definitions... 13 Table 2: Central and Latin America Insurance Penetration as a Percentage of GDP (%), 2011... 19 Table 3: Central and Latin America Life Expectancy (Years), 2007, 2011 and 2016... 19 Table 4: Venezuelan Insurance Overall Written Premium by Segment (VEF Billion), 2008 2012... 36 Table 5: Venezuelan Insurance Overall Written Premium by Segment (US$ Billion), 2008 2012... 36 Table 6: Venezuelan Insurance Overall Written Premium by Segment (VEF Billion), 2012 2017... 37 Table 7: Venezuelan Insurance Overall Written Premium by Segment (US$ Billion), 2012 2017... 37 Table 8: Venezuelan Insurance Segmentation (Percentage Share), 2008 2017... 39 Table 9: Venezuelan Life Insurance Written Premium by Category (VEF Million), 2008 2012... 42 Table 10: Venezuelan Life Insurance Written Premium by Category (US$ Million), 2008 2012... 42 Table 11: Venezuelan Life Insurance Written Premium by Category (VEF Million), 2012 2017... 43 Table 12: Venezuelan Life Insurance Written Premium by Category (US$ Million), 2012 2017... 43 Table 13: Venezuelan Life Insurance Earned Premium (VEF Million), 2008 2012... 46 Table 14: Venezuelan Life Insurance Earned Premium (VEF Million), 2012 2017... 47 Table 15: Venezuelan Life Insurance Sum Assured (VEF Billion), 2008 2012... 48 Table 16: Venezuelan Life Insurance Sum Assured (VEF Trillion), 2012 2017... 49 Table 17: Venezuelan Life Insurance Paid Claims (VEF Million), 2008 2012... 50 Table 18: Venezuelan Life Insurance Paid Claims (VEF Million), 2012 2017... 51 Table 19: Venezuelan Life Insurance Incurred Loss (VEF Million), 2008 2012... 52 Table 20: Venezuelan Life Insurance Incurred Loss (VEF Million), 2012 2017... 53 Table 21: Venezuelan Life Insurance Loss Ratio (%), 2008 2012... 54 Table 22: Venezuelan Life Insurance Loss Ratio (%), 2012 2017... 55 Table 23: Venezuelan Life Insurance Commissions and Expenses (VEF Million), 2008 2012... 56 Table 24: Venezuelan Life Insurance Commissions and Expenses (VEF Million), 2012 2017... 57 Table 25: Venezuelan Life Insurance Combined Ratio (%), 2008 2012... 58 Table 26: Venezuelan Life Insurance Combined Ratio (%), 2012 2017... 59 Table 27: Venezuelan Life Insurance Frauds and Crimes (VEF Million), 2008 2012... 60 Table 28: Venezuelan Life Insurance Frauds and Crimes (VEF Million), 2012 2017... 61 Table 29: Venezuelan Life Insurance Total Assets (VEF Million), 2008 2012... 62 Table 30: Venezuelan Life Insurance Total Assets (VEF Million), 2012 2017... 63 Table 31: Venezuelan Life Insurance Total Investment Income (VEF Million), 2008 2012... 64 Table 32: Venezuelan Life Insurance Total Investment Income (VEF Million), 2012 2017... 65 Table 33: Venezuelan Life Insurance Retentions (VEF Million), 2008 2012... 66 Table 34: Venezuelan Life Insurance Retentions (VEF Million), 2012 2017... 67 Table 35: Venezuelan Individual Life Insurance Number of Active Policies (Thousand), 2008 2012... 74 Table 36: Venezuelan Individual Life Insurance Number of Active Policies, 2012 2017... 75 Table 37: Venezuelan Individual Life Insurance Written Premium (VEF Million), 2008 2012... 76 Table 38: Venezuelan Individual Life Insurance Written Premium (VEF Million), 2012 2017... 77 Table 39: Venezuelan Individual General Annuity Insurance Number of Active Policies (Thousand), 2008 2012... 78 Table 40: Venezuelan Individual General Annuity Insurance Number of Active Policies (Thousand), 2012 2017... 79 Table 41: Venezuelan Individual General Annuity Insurance Written Premium (VEF Million), 2008 2012... 80 Table 42: Venezuelan Individual General Annuity Insurance Written Premium (VEF Million), 2012 2017... 81 Table 43: Venezuelan Other Individual Insurance Number of Active Policies (Thousand), 2008 2012... 82 Table 44: Venezuelan Other Individual Insurance Number of Active Policies (Thousand), 2012 2017... 83 Table 45: Venezuelan Other Individual Insurance Written Premium (VEF Million), 2008 2012... 84 Table 46: Venezuelan Other Individual Insurance Written Premium (VEF Million), 2012 2017... 85 Table 47: Venezuelan Group Life Insurance Number of Active Policies (Thousand), 2008 2012... 86 Table 48: Venezuelan Group Life Insurance Number of Active Policies (Thousand), 2012 2017... 87 Table 49: Venezuelan Group Life Insurance Written Premium (VEF Million), 2008 2012... 88 Table 50: Venezuelan Group Life Insurance Written Premium (VEF Million), 2012 2017... 89 Table 51: Venezuelan Individual Single-Premium Insurance Number of Active Policies (Thousand), 2008 2012... 90 Table 52: Venezuelan Individual Single-Premium Insurance Number of Active Policies (Thousand), 2012 2017... 91 Table 53: Venezuelan Individual Single-Premium Insurance Written Premium (VEF Million), 2008 2012... 92 Table 54: Venezuelan Individual Single-Premium Insurance Written Premium (VEF Million), 2012 2017... 93 Table 55: Venezuelan Individual Non-Single-Premium Insurance Number of Active Policies (Thousand), 2008 2012... 94 Table 56: Venezuelan Individual Non-Single-Premium Insurance Number of Active Policies (Thousand), 2012 2017... 95 Table 57: Venezuelan Individual Non-Single-Premium Insurance Written Premium (VEF Million), 2008 2012... 96 Table 58: Venezuelan Individual Non-Single-Premium Insurance Written Premium (VEF Million), 2012 2017... 97 Table 59: Venezuelan Group Single-Premium Insurance Number of Active Policies (Thousand), 2008 2012... 98 Table 60: Venezuelan Group Single-Premium Insurance Number of Active Policies (Thousand), 2012 2017... 99 Table 61: Venezuelan Group Single-Premium Insurance Written Premium (VEF Million), 2008 2012... 100 Table 62: Venezuelan Group Single-Premium Insurance Written Premium (VEF Million), 2012 2017... 101 Table 63: Venezuelan Group Non-Single-Premium Insurance Number of Active Policies (Thousand), 2008 2012... 102 Life Insurance in Venezuela, Key Trends and Opportunities to 2017 Page 10

Table 64: Venezuelan Group Non-Single-Premium Insurance Number of Active Policies (Thousand), 2012 2017... 103 Table 65: Venezuelan Group Non-Single-Premium Insurance Written Premium (VEF Million), 2008 2012... 104 Table 66: Venezuelan Group Non-Single-Premium Insurance Written Premium (VEF Million), 2012 2017... 105 Table 67: Venezuelan Life Insurance Direct Marketing Commission Paid (VEF Million), 2008 2012... 108 Table 68: Venezuelan Life Insurance Direct Marketing Commission Paid (VEF Million), 2012 2017... 109 Table 69: Venezuelan Life Insurance New Business Written Premium Through Direct Marketing (VEF Million), 2008 2012... 110 Table 70: Venezuelan Life Insurance New Business Written Premium Through Direct Marketing (VEF Million), 2012 2017... 111 Table 71: Venezuelan Life Insurance New Policies Sold Through Direct Marketing (Thousand), 2008 2012... 112 Table 72: Venezuelan Life Insurance New Policies Sold Through Direct Marketing (Thousand), 2012 2017... 113 Table 73: Venezuelan Life Insurance Number of Direct Marketing Distributors, 2008 2012... 114 Table 74: Venezuelan Life Insurance Number of Direct Marketing Distributors, 2012 2017... 115 Table 75: Venezuelan Life Insurance Bancassurance Commission Paid (VEF Million), 2008 2012... 116 Table 76: Venezuelan Life Insurance Bancassurance Commission Paid (VEF Million), 2012 2017... 117 Table 77: Venezuelan Life Insurance New Business Written Premium Through Bancassurance (VEF Million), 2008 2012... 118 Table 78: Venezuelan Life Insurance New Business Written Premium Through Bancassurance (VEF Million), 2012 2017... 119 Table 79: Venezuelan Life Insurance New Policies Sold Through Bancassurance (Thousand), 2008 2012... 120 Table 80: Venezuelan Life Insurance New Policies Sold Through Bancassurance (Thousand), 2012 2017... 121 Table 81: Venezuelan Life Insurance Number of Bancassurance Distributors, 2008 2012... 122 Table 82: Venezuelan Life Insurance Number of Bancassurance Distributors, 2012 2017... 123 Table 83: Venezuelan Life Insurance Commission Paid to Agencies (VEF Million), 2008 2012... 124 Table 84: Venezuelan Life Insurance Commission Paid to Agencies (VEF Million), 2012 2017... 125 Table 85: Venezuelan Life Insurance New Business Written Premium Through Agencies (VEF Million), 2008 2012... 126 Table 86: Venezuelan Life Insurance New Business Written Premium Through Agencies (VEF Million), 2012 2017... 127 Table 87: Venezuelan Life Insurance New Policies Sold Through Agencies (Thousand), 2008 2012... 128 Table 88: Venezuelan Life Insurance New Policies Sold Through Agencies (Thousand), 2012 2017... 129 Table 89: Venezuelan Life Insurance Number of Agencies, 2008 2012... 130 Table 90: Venezuelan Life Insurance Number of Agencies, 2012 2017... 131 Table 91: Venezuelan Life Insurance E-Commerce Commission Paid (VEF Million), 2008 2012... 132 Table 92: Venezuelan Life Insurance E-Commerce Commission Paid (VEF Million), 2012 2017... 133 Table 93: Venezuelan Life Insurance New Business Written Premium Through E-Commerce (VEF Million), 2008 2012... 134 Table 94: Venezuelan Life Insurance New Business Written Premium Through E-Commerce (VEF Million), 2012 2017... 135 Table 95: Venezuelan Life Insurance New Policies Sold Through E-Commerce (Thousand), 2008 2012... 136 Table 96: Venezuelan Life Insurance New Policies Sold Through E-Commerce (Thousand), 2012 2017... 137 Table 97: Venezuelan Life Insurance Number of E-Commerce Distributors, 2008 2012... 138 Table 98: Venezuelan Life Insurance Number of E-Commerce Distributors, 2012 2017... 139 Table 99: Venezuelan Life Insurance Commission Paid to Brokers (VEF Million), 2008 2012... 140 Table 100: Venezuelan Life Insurance Commission Paid to Brokers (VEF Million), 2012 2017... 141 Table 101: Venezuelan Life Insurance New Business Written Premium Through Brokers (VEF Million), 2008 2012... 142 Table 102: Venezuelan Life Insurance New Business Written Premium Through Brokers (VEF Million), 2012 2017... 143 Table 103: Venezuelan Life Insurance New Policies Sold Through Brokers (Thousand), 2008 2012... 144 Table 104: Venezuelan Life Insurance New Policies Sold Through Brokers (Thousand), 2012 2017... 145 Table 105: Venezuelan Life Insurance Number of Brokers, 2008 2012... 146 Table 106: Venezuelan Life Insurance Number of Brokers, 2012 2017... 147 Table 107: Venezuelan Life Insurance Commission Paid to Other Channels (VEF Million), 2008 2012... 148 Table 108: Venezuelan Life Insurance Commission Paid to Other Channels (VEF Million), 2012 2017... 149 Table 109: Venezuelan Life Insurance New Business Written Premium Through Other Channels (VEF Million), 2008 2012... 150 Table 110: Venezuelan Life Insurance New Business Written Premium Through Other Channels (VEF Million), 2012 2017... 151 Table 111: Venezuelan Life Insurance New Policies Sold Through Other Channels (Thousand), 2008 2012... 152 Table 112: Venezuelan Life Insurance New Policies Sold Through Other Channels (Thousand), 2012 2017... 153 Table 113: Venezuelan Life Insurance Number of Distributors in Other Channels, 2008 2012... 154 Table 114: Venezuelan Life Insurance Number of Distributors in Other Channels, 2012 2017... 155 Table 115: Venezuelan Reinsurance by Category (VEF Billion), 2008 2012... 159 Table 116: Venezuelan Reinsurance by Category (US$ Billion), 2008 2012... 159 Table 117: Venezuelan Reinsurance by Category (VEF Billion), 2012 2017... 160 Table 118: Venezuelan Reinsurance by Category (US$ Billion), 2012 2017... 160 Table 119: Venezuelan Premium Ceded to Reinsurance by Type of Insurance (VEF Billion), 2008 2012... 163 Table 120: Venezuelan Premium Ceded to Reinsurance by Type of Insurance (US$ Billion), 2008 2012... 163 Table 121: Venezuelan Premium Ceded to Reinsurance by Type of Insurance (VEF Billion), 2012 2017... 164 Table 122: Venezuelan Premium Ceded to Reinsurance by Type of Insurance (US$ Billion), 2012 2017... 164 Table 123: Venezuelan Life Insurance Percentage of Reinsurance Ceded (%), 2008 2012... 166 Table 124: Venezuelan Life Insurance Percentage of Reinsurance Ceded (%), 2012 2017... 167 Table 125: Shares of Key Insurers in the Venezuelan Life Insurance Segment (%), 2012... 171 Table 126: Seguros Horizonte CA, Key Facts... 175 Table 127: Seguros Horizonte CA, Key Financials (VEF Million), 2007 2012... 175 Table 128: Seguros la Fe CA, Key Facts... 176 Table 129: Seguros la Fe CA, Key Financials (VEF Million), 2007 2012... 176 Life Insurance in Venezuela, Key Trends and Opportunities to 2017 Page 11

Table 130: Zurich Seguros SA, Key Facts... 177 Table 131: Zurich Seguros SA, Key Financials (VEF Million), 2007 2012... 177 Table 132: Banesco Seguros CA, Key Facts... 178 Table 133: Banesco Seguros CA, Key Financials (VEF Million), 2007 2012... 178 Table 134: Seguros Mercantil CA, Key Facts... 179 Table 135: Seguros Mercantil CA, Key Financials (VEF Million), 2007 2012... 179 Table 136: Seguros Provincial CA, Key Facts... 180 Table 137: Seguros Provincial CA, Key Financials (VEF Million), 2007 2012... 180 Table 138: CNA de Seguros La Previsora, Key Facts... 181 Table 139: CNA de Seguros La Previsora, Key Financials (VEF Million), 2007 2012... 181 Table 140: CA de Seguros La Occidental, Key Facts... 182 Table 141: CA de Seguros La Occidental, Key Financials (VEF Million), 2007 2012... 182 Table 142: Mapfre La Seguridad CA de Seguros, Key Facts... 183 Table 143: Mapfre La Seguridad CA de Seguros, Key Financials (VEF Million), 2007 2012... 183 Table 144: Seguros Caracas de Liberty Mutual, CA, Key Facts... 184 Table 145: Seguros Caracas de Liberty Mutual, CA, Key Financials (VEF Million), 2007 2012... 184 Life Insurance in Venezuela, Key Trends and Opportunities to 2017 Page 12

INTRODUCTION 2 Introduction 2.1 What is this Report About? This report is the result of extensive research into the life insurance segment in Venezuela, covering its dynamics and competitive landscape. It provides insights into the size and forecast for the overall life insurance segment, and categories such as individual and group insurance, and provides details of products in each category. This report also provides an overview of the leading companies in the life insurance segment, along with details of strategic initiatives undertaken. 2.2 Definitions All data is collected in local currency. Conversions into US dollars (US$) of current and forecast data are made at the 2012 average annual conversion rate. Most values are displayed to one decimal place. As such, growth rates may appear inconsistent with absolute values due to rounding. For the purposes of this report, the review period is 2008 2012 and the forecast period is 2012 2017. The key insurance industry terms covered in the report are defined below: Table 1: Insurance Industry Definitions Term Ceding company Incurred loss Claim ratio Definition A primary insurer that transfers some of its insurance risk by ceding a proportion of its total written premium through a reinsurance contract. The sum of claims paid by an insurance company and the change in the provision for outstanding claims irrespective of whether or not they have been reported. Claims payable as a percentage of premium income. Commission and expenses Comprehensive loss ratio Earned premium Endowment policy Facultative reinsurance Gross claim Gross written premium Group annuity Insurance density and penetration Insurance fraud The sum of acquisition cost and administrative cost. The acquisition cost is the percentage of a premium produced that is retained as compensation by insurance agents and brokers. The ratio of claims incurred to net premium earned. The amount of money considered to have been earned on a policy by an insurer. It is calculated by multiplying the original premium by the percentage of the policy s term which has expired without a claim being made. A scheme in which the term of the policy is defined for a specified period, such as 15, 25 or 30 years. The insurer pays the claim to the family of the assured in an event of his or her death within the policy's term or in an event of the assured surviving the policy's term. An arrangement for separate reinsurance for each risk that the primary insurer underwrites. The reinsurer can accept or reject any risk presented by the primary insurer seeking reinsurance. The amount payable by an insurance company before allowances is made for credits that may be due in the form of reinsurance, subrogation or salvage. The total amount of premiums (before deduction of reinsurance costs) customers are required to pay for insurance policies written during the year. A life insurance scheme providing annuities at retirement to a group of people under a single contract. It is usually bought by an employer for the benefit of its employees. The percentage of total written premium to the country s GDP. Any act committed with the intent to obtain payment from an insurer through fraudulent means. Life Insurance in Venezuela, Key Trends and Opportunities to 2017 Page 13

INTRODUCTION Table 1: Insurance Industry Definitions Term Lapsed policy Definition A policy that is terminated due to the non-payment of the premium. Loss ratio Liability insurance The ratio of total losses paid out in the form of claims plus adjustment expenses divided by the total earned premium. A type of insurance that covers legal claims by third parties against the insured. Loss reserve The estimated amount of claims incurred but not yet settled. Maturity claim The payment made to a policyholder at the end of the stipulated term of a term life insurance policy. Per capita premium The ratio of the total written premium to the country s total population. Premium ceded The share of premiums transferred to a reinsurance company by a primary insurer. Single-premium life insurance policy A life insurance scheme in which a lump sum is paid into the policy in return for an assured sum of money in the event of the policyholder s death. Term insurance A life insurance scheme that provides protection for a specified period, usually between five and 20 years. The policy expires without value if the insured survives the stated period. Treaty reinsurance Direct marketing E-commerce A reinsurance agreement applying to the reinsurance of a class or some classes of business, instead of an individual risk. Direct Marketing channels for insurance policies include insurance companies sales forces, telemarketing, postal mail, e-mail, call centers and mobile phones. The distribution of insurance policies online through a company or third-party website. Agencies Insurance brokers Bancassurance Other distribution channels Source: Timetric analysis Individuals and corporate agencies which are licensed to sell insurance for one or more specific insurance companies. Individuals or businesses which sell insurance policies, and advise and represent the policyholder. They differ from insurance agents, which act on the behalf of an insurance company. The partnership between a bank and an insurance company in which the insurance company uses the bank s sales channel to sell insurance. Other distribution channels include post offices, convenience stores, multi-level marketing, any channel other than agencies, direct marketing, bancassurance and the above-mentioned channels. Timetric Life Insurance in Venezuela, Key Trends and Opportunities to 2017 Page 14

INTRODUCTION 2.3 Methodology All Timetric insurance reports are created by following a comprehensive, four-stage methodology. This includes market study, research, analysis and quality control. 1) Market Study A. Standardization Definitions are specified using recognized industry classifications. The same definition is used for every country. Annual average currency exchange rates are used for the latest completed year. These are then applied across both the historical and forecast data to remove exchange rate fluctuations. B. Internal audit Review of in-house databases to gather existing data: Historic market databases and reports Company database C. Trend monitoring Review of the latest insurance companies and industry trends 2) Research A. Sources Collection of the latest market-specific data from a wide variety of industry sources: Government statistics Industry associations Company filings International organizations Insurance regulatory agencies B. Expert opinion Collation of opinion taken from leading insurance industry experts Analysis of third-party opinion and forecasts: Broker reports Media Official government sources C. Data consolidation and verification Consolidation of data and opinion to create historical datasets Creation of models to benchmark data across sectors and regions 3) Analysis A. Market forecasts Feeding forecast data into market models: Macroeconomic indicators Industry-specific drivers Analysis of insurance industry database to identify trends: Latest insurance trends Key drivers of the insurance industry Life Insurance in Venezuela, Key Trends and Opportunities to 2017 Page 15

INTRODUCTION B. Report writing Analysis of market data Discussion of company and industry trends and issues Review of financial deals and insurance trends 4) Quality Control Templates Detailed process manuals Standardized report templates and accompanying style guides Complex forecasting tools to ensure that forecast methodologies are consistently applied Quality-control checklists Quality-control process Peer review Senior-level QC Random spot checks on data integrity Benchmark checks across databases Market data cross-checked for consistency with accumulated data from: Company filings Government sources Life Insurance in Venezuela, Key Trends and Opportunities to 2017 Page 16

APPENDIX 3 Appendix 3.1 Methodology Timetric s dedicated research and analysis teams consist of experienced professionals with an industry background in marketing, market research, consulting and advanced statistical expertise. Timetric adheres to the Codes of Practice of the Market Research Society (www.mrs.org.uk) and the Society of Competitive Intelligence Professionals (www.scip.org). All Timetric databases are continuously updated and revised. 3.2 Contact Timetric If you have any queries about this report, or would like any further information, please contact info@timetric.com. 3.3 About Timetric Timetric is a leading provider of online data, analysis and advisory services on key financial and industry sectors. It provides integrated information services covering risk assessments, forecasts, industry analysis, market intelligence, news and comment. Timetric helps over 1,500 financial services institutions and their partner companies around the world benefit from better, timelier decisions. Timetric provides: High-quality data including proprietary, specialized industry data, survey-based research, social media monitoring, macroeconomic data and forecasts Expert analysis from experienced economists and analysts, who use robust proprietary models, indices and forecasts Powerful proprietary visualization and workflow technologies developed over years of extensive investment Timetric has office locations in London, New York, San Francisco, Hyderabad, Seoul, Singapore and Sydney. It employs 500 people, including 150 analysts and economists, and 200 professional researchers. Life Insurance in Venezuela, Key Trends and Opportunities to 2017 Page 17

APPENDIX 3.4 Timetric s Services Intelligence Centers Timetric s industry intelligence centers are premium web-based services that provide access to interactive tools, comprehensive research and expert analysis in key sectors. They provide invaluable decision support presented in an easily digestible format and grounded in deep research. Timetric offers Intelligence Centers covering the following industries: Banking Insurance Wealth Construction Travel and Tourism Briefing Services Timetric offers a range of briefing services, which offer cutting-edge thought leadership and expert commentary on and for the financial services industries. Driven by influential and respected editorial teams with years of experience in their respective fields, these services deliver need-to-know insight and analysis to decision makers across the financial services value chain. Timetric offers briefing services covering the following financial sectors: Consultancy Accountancy Asset Finance Banking Cards and Payments Insurance Timetric specializes in the development and delivery of innovative research solutions that are designed to provide competitive advantage and profitability to clients. Dedicated industry analysts and economists provide expert advice and actionable recommendations underpinned by Timetric s market and country knowledge, experience and proprietary databases, panels and research infrastructure. For projects requiring quantitative data, Timetric undertakes special research projects using its in-house panels and survey technology. These provide ready access to an extensive source of specialist business executives and consumers. Core capabilities are: Economic Research and Consulting Highly experienced economists provide a number of bespoke research services covering subjects ranging from macroeconomic forecasting to sector outlooks, business presentations and workshops. Industry Analysis and Consulting Information analysis, independent expert opinion and advice, facilitated decision or strategic support, are provided by Timetric s extensive body of proprietary data and analysis models. It provides expertisebased consulting to deliver solutions that best suit its clients requirements. Quantitative Research Timetric connects with thousands of potential customers for various markets every day. Using sophisticated, interactive and highly engaging graphical surveys, research speed is increased and costs reduced, while ensuring that respondents deliver the insight needed. Life Insurance in Venezuela, Key Trends and Opportunities to 2017 Page 18