A NEW ERA FOR WEALTH MANAGEMENT IN AN INCREASINGLY DIGITAL AND GLOBALISED WORLD

Panelists Experts: Pierre Even, Head of Relationship Management Private Equity & Real Estate, Banque de Luxembourg Christian Kratz, Co-Founder, Investify Dennis Nygren, Head of Wealth Management, Catella Bank S.A. Moderator: Yves Maas, Chairman, The Luxembourg Bankers Association (ABBL)

Wealth Management in Luxembourg Global results

Evolution of Wealth Bands in terms of Assets

Evolution of Geographic Origin of Client Assets

Wealth management and digitalisation ü Shifting client needs combined with available technology are disrupting traditional private banking models while also creating huge opportunities ü Growing demand for digital: from customers: high demand for digital tools to improve the global interaction experience. New generation of clients is digital. from Wealth Managers: growing demand for digital instruments to better reach and interact with client. Capgemini study reveals that 80% of Wealth Managers believe digital tools have positive impacts on their overall ability to interact with customers ü Traditional and digital channels no longer co-exist but merge => hybrid model (Robo advisor, RegTech, ) ü Increasing digitalisation implies increasing investments and recurring costs (tools development, cyber-security, )

Luxembourg Wealth Management Service Offer

KAPITALFÖRSÄKRINGAR - FÖRMÖGENHETS- OCH SUCCESSIONSPLANERING UR ETT PAN-EUROPEISKT PERSPEKTIV

Panelists Experts: Cecilia Bjerke-Quirke, Country Manager Sweden, Foyer International Roberth Josefsson, Sales Director Sweden, Swiss Life Luxembourg Daniel Starberg, Senior Wealth Planner, Lombard Intermediation Services Moderator: Marc Lauer, Vice-Chairman, Luxembourg Insurance and Reinsurance Association (ACA)

CROSS BORDER LIFE INSURANCE EXPERTISE Luxembourg Insurance Premiums Non Life Local Market 4% Non Life Insurance abroad 11% Life Insurance abroad 78% Life Insurance Local Market 7% Source: Luxembourg Insurance and Reinsurance Association (ACA), Q4 2016

Life insurance Premiums Assets under Management Bn Bn 25 20 20,4 19,8 18,4 21,9 19,7 20,3 180 160 140 136,6 148,7 159,8 15 10 13,5 120 100 80 60 82,4 85,7 101,1 111,1 5 40 20 0 2010 2011 2012 2013 2014 2015 2016 0 2010 2011 2012 2013 2014 2015 2016 Source : ACA Source : Commissariat aux Assurances (CAA)

CROSS BORDER LIFE INSURANCE EXPERTISE Life Insurance Premiums 2016 - Split Belgium 6% Germany 7% Italy Luxembourg 8% Sweden 5% Portugal 4% UK 3% Spain 3% Other 12% Outside EEA 6% 21% EEE 2% France Other EU countries 31% 1% Source : Luxembourg Insurance and Reinsurance Association (ACA) Poland 1% Finland 2%

Luxembourg life insurance for Swedish customers Premiums Assets under Management Mn Bn 1600 1400 1359 4 3,5 3,7 1200 1140 3 2,8 1000 960 2,5 800 600 400 200 377 258 287 169 2 1,5 1 0,5 1,6 1,4 1,6 1,8 1,2 0 2010 2011 2012 2013 2014 2015 2016 0 2010 2011 2012 2013 2014 2015 2016 Source : Luxembourg Insurance and Reinsurance Association (ACA)

3 rd European life insurance directive framework Principle (since 1994): 1 European country authorised to market its products and provide cross-border services in other European states 26,46 billion Contract law = Luxembourg prudential rules Policyholder country of residence 14

EU Passport 1 500 KM LUXEMBOURG 2 100 KM 26,46 billion 2 100 KM bank insurance reinsurance securities Investment funds EU passport being implemented hedge funds private equity real estate 15

Clients needs Privacy Flexibility Asset & Investor protection Estate Planning Insurance Tax Framework Portability

Luxembourg s unique policyholder protection CAA CAA Investment rules Quarterly checks Protection against creditors Separation of clients' assets Super Privilege Policy -holder Insurer CAA Approved Custodian Bank

Key players Family Office INSURER Tax Advisor Legal Advisor Policyholder Asset Manager CAA Intermediary Custodian Bank

Authorised financial instruments Other EU countries External funds UCITS Equities Bonds Specialised Investment Funds Unlisted assets Assets with reduced liquidity Hedge funds Raw materials Precious metals Luxembourg* * Circular letter 15/3 (CAA)

Why choosing Luxembourg life insurance? An integrated and sophisticated solution Policyholder Tailor-made Tax neutrality Centralisation protection Management Taxation Centralisation Security triangle Dedicated of the country of financial with separated Funds of policyholder assets and assets Specialised country estate planning Insurance of residence while abroad Funds

KAPITALFÖRSÄKRINGAR - FÖRMÖGENHETS- OCH SUCCESSIONSPLANERING UR ETT PAN-EUROPEISKT PERSPEKTIV

Cross-border life insurance expertise Luxembourg Insurance Premiums Non Life Local Market [POURCENTAGE] Non Life Insurance abroad [POURCENTAGE] Life Insurance abroad [POURCENTAGE] Life Insurance Local Market [POURCENTAGE] Source: Luxembourg Insurance and Reinsurance Association (ACA), Q4 2016

Cross-border life insurance expertise Life Insurance Premiums 2016 - Split Source : Luxembourg Insurance and Reinsurance Association (ACA)

EU Passport 1 500 KM LUXEMBOURG 2 100 KM 26,46 billion 2 100 KM bank insurance reinsurance securities Investment funds EU passport being implemented hedge funds private equity real estate 28

Clients needs Privacy Flexibility Asset & Investor protection Estate Planning Insurance Tax Framework Portability

Key players Family Office INSURER Tax Advisor Legal Advisor Policyholder Asset Manager CAA Intermediary Custodian Bank