Presentation of DKV Deutsche Krankenversicherung AG Tallin n , 8th September 2005

1. Presentation of DKV Deutsche Krankenversicherung AGTallinn, 8th September 2005 Bernd Knof

2. Summary • DKV in figures • New challenges in the health care sector • Think Healthcare! Our strategy • Different types of PHI systems • DKV’s experience in different types of health insurance markets • DKV’s international activities • Risks/chances of DKV in different markets • General market opportunities from PHI view • Conclusion

3. DKV in figures 2004 DKV GROUP* million euros % • Premiums 4,549.6 • Change as against previous year 1.9 *Including VICTORIA Kranken and foreign subsidiaries. DKV AG million euros % • Premiums 3,325.6 • Change as against previous year 2.0 Ageing reserve 15,260.0

4. Summary • DKV in figures • New challenges in the health care sector • Think Healthcare! Our strategy • Different types of PHI systems • DKV’s experience in different types of health insurance markets • DKV’s international activities • Risks/chances of DKV in different markets • General market opportunities from PHI view • Conclusion

5. New challenges in the health care sector (1) The opportunities: • The healthcare market is growing worldwide • Ever higher levels of quality and transparency are expected • Well-being and aesthetics are new dimensions in medicine • More and more people are living longer

6. New challenges in the health care sector (2)

7. Summary • DKV in figures • New challenges in the health care sector • Think Healthcare! Our strategy • Different types of PHI systems • DKV’s experience in different types of health insurance markets • DKV’s international activities • Risks/chances of DKV in different markets • General market opportunities from PHI view • Conclusion

8. Think Healthcare! Our strategy covers all aspects of modern healthcare THINK HEALTHCARE! DKV aims to provide people with convincing health solutions, wherever they may be. INSURANCE HEALTH SERVICES PROVIDING CARE • Comprehensive and supplementary insurance coverage of all types • Innovative insurance products such as • DKV-health hotline • DKV healthcare programs • Health information via the Internet • Publications, Customer Information and newsletters • International Assistance Best Care Optident DKV-Residenzen

9. Summary • DKV in figures • New challenges in the health care sector • Think Healthcare! Our strategy • Different types of PHI systems • DKV’s experience in different types of health insurance markets • DKV’s international activities • Risks/chances of DKV in different markets • General market opportunities from PHI view • Conclusion

10. Different types of PHI-Systems * * OECD classification

11. Summary • DKV in figures • New challenges in the health care sector • Think Healthcare! Our strategy • Different types of PHI systems • DKV’s experience in different types of health insurance markets • DKV’s international activities • Risks/chances of DKV in different markets • General market opportunities from PHI view • Conclusion

12. Germany Belgium Substitutive market Europe Supplementary market Asia China Spain Developinghealth market Network and providersteered market DKV‘s experience in different types ofhealth insurance markets (1) Examples

13. DKV‘s experience in different types ofhealth insurance markets Germany - substitutive market • DKV • DKV has almost 80 years of health insurance experience. • The product range varies from comprehensive to supplementary health insurances and also long- term-care products were offered. • DKV’s core business is to develop comprehensive long-term health insurance products, adequate to German market needs. • Realistic risk analysis possible, due to an extensive medical data pool. Health market 90% of the population are covered by the Statutory Health Insurance system. PHI - substitutive market • Private Health Insurance is able to replace entirely or partially the Statutory Health Insurance. • The PHI represents an important column of the German social security system. • Also Long-term-care and dental care are part of the coverage.

14. DKV‘s experience in different types ofhealth insurance markets Germany - substitutive market Product Principles • Guarantee of coverage for life • Premium calculation based on underlying risk (gender / age) • Premium adjustments solely due to aging are not exercised • Cost of service principle “Benefit equals service in return” Cash value of expected benefit equals cash value of expected premium

15. DKV‘s experience in different types ofhealth insurance markets Spain - network and provider steered market • Health market • 98% of the population are covered by the statutory health insurance system.Only public servants have the possibility to choose between public or private insurances. • PHI - Network and provider steered market • Service provided by own or contractually bound networks • PHI-companies offer comprehensive and supplementary products • DKV Seguros • DKV Seguros offers supplemen-tary and comprehensive products. • Well-priced / competitive products by building up provider-networks. • Premium calculation: - without aging reserves - gender, age, geographic region • Provider network of DKV Seguros: • 280 Hospitals • 22.000 Medical doctors • 500 Out-patient medical centers • 450 Diagnostic centers • 500 Clinical laboratories

16. Innovative Health Model in Denia, Spain • 02/2005: DKV Seguros, DKV‘s subsidiary company in Spain,wins the tender of a public health insurance contract • Region Denia: • - 140.000 inhabitants • - 68.000 long-term tourists • - 350.000 Tourists p.a. • Integrated care business in the Denia region based on a innovative per-capita insurance model. • Management of public health services(medical care, hospital) • 01/2007: Business start

17. DKV‘s experience in different types ofhealth insurance markets Belgium - supplementary market • Health market • 99% of the population are covered by the statutory health insurance system. • PHI – Supplementary market • High potential for private supplementary products, due to big gaps within the statutory system. • Approx. 15% of the population have private supplementary coverage. • LTC – Substitutive market • public insurers (mutuelles) and private • Insurers operate parallely • DKV Belgium • DKV has a very good reputation; brokers recommend DKV-products • DKV developed cost-effective and competitivesupplementary products. • Main focus on in-patient and long-term-care products. • Premium calculation: - with aging reserves - gender, age, geographic region - long-term-products

18. DKV‘s experience in different types ofhealth insurance markets China – developing market • Health market • Only 10% of the population are covered by the statutory health care system • PHI – developing market • PHI was offered by life insurance companies • No comprehensive health insurance products available • Dread disease, critical illness and lump sum products were offered • DKV`s experience • 2004: Foundation of the first PHI-company in China (PICC-Health) • Development of comprehensive and supplementary PHI-products • Support by the government • Close co-operation with supervisory authority • Preparation of risk list for China • Premium calculation: - start with short-term products without aging reserves - next step: long-term-products

19. Involvement in establishing the first private health insurance in China, PICC Health • Nov. 2004: Foundation of PICC Health • DKV has 19% shares of the new company • DKV holds important positions in PICC Health • Agreement of PICC und DKV: Long-Term Strategic Cooperation • DKV project team with 20 persons in Beijing • April 2005: Business license • Grant of license was politically supported; personal comment by prime minister • First business license for a private health insurance company was granted by CIRC

20. Summary • DKV in figures • New challenges in the health care sector • Think Healthcare! Our strategy • Different types of PHI systems • DKV’s experience in different types of health insurance markets • DKV’s international activities • Risks/chances of DKV in different markets • General market opportunities from PHI view • Conclusion

21. DKV – The No. 1 among private health insurers in Europe Norway and Sweden • Storebrand Helseforsikring Belgium • DKV Belgium Luxembourg • DKV Luxembourg Spain • DKV Seguros

22. Premium p.a.Mio. EUR Positionin market Company Country Customers DKV Belgium No. 1 1,2 Mio. 226 DKV Luxembourg No. 1 18.000 14 DKV Seguros No. 5 1,5 Mio. 251 StorebrandHelse No. 1* 30.000 14 * in Norway Excellent position of our foreign subsidiaries

23. We offer insurance, service and healthcare froma single source – worldwide THINK HEALTHCARE! INSURANCE HEALTH SERVICES PROVIDING CARE Spain: • Medical Network: Contracts with over 22,000 doctors and over 1,000 hospitals Denia: • Integrated care business in the Denia region based on a innovative per-capita insurance model Norway/Sweden: • Best Care tariff for customers of Storebrand Helse Belgium: • Second Opinion Spain: • Health telephone line • 24h-Emergency- Phone • Second opinion PICC Health

24. Summary • DKV in figures • New challenges in the health care sector • Think Healthcare! Our strategy • Different types of PHI systems • DKV’s experience in different types of health insurance markets • DKV’s international activities • Risks/chances of DKV in different markets • General market opportunities from PHI view • Conclusion

25. Difficulties in different markets • Political decisionsIn The Netherlands the announced introduction of the basic insurance for entire population was main criteria for market exit. DKV NL could not reach critical size in near future. • Legal practiceDKV Belgium: A court decision driven by consumer organisation Test Achat intervened in the principles of premium calculation.

26. Opportunities in different markets • Political decisionsIn Spain the Government partly privatised the health care support of the region Denia and tendered a public health insurance contract. • Legal practiceBoth political and economic development in China gave us the opportunity to enter the market with a joint venture.

27. Summary • DKV in figures • New challenges in the health care sector • Think Healthcare! Our strategy • Different types of PHI systems • DKV’s experience in different types of health insurance markets • DKV’s international activities • Risks/chances of DKV in different markets • General market opportunities from PHI view • Conclusion

28. Market opportunities from PHI view (I) Legal / Regulatory aspects: • Legislation opens the market for PHI and sets clear regulations for the development of PHI • Definition of the level-playing field for both the public and the private insurers (as private insurers often have disadvantages regarding taxes, solvency requirements, …) • Legislation supports ans sets rules for provider market • Stable political environment (as PHI is heavily politically influenced)

29. Market opportunities from PHI view (II) Macro-economical aspects: • Limited quality and/or service of statutory health care system • Waiting lists in statutory health care system • Problems of funding statutory health care system and/or funding of medical infrastructure • Spendable income of (parts of) the population is present

30. Market opportunities from PHI view (III) Attractive market conditions: • Medical infrastructure is present and can offer adequate provision of care • Existing private Life- and/or P&C market has established understanding and acceptance for private insurance activities - Information on medical treatments are present or can be build up to allow data-based actuarial calculation

31. Summary • DKV in figures • New challenges in the health care sector • Think Healthcare! Our strategy • Different types of PHI systems • DKV’s experience in different types of health insurance markets • DKV’s international activities • Risks/chances of DKV in different markets • General market opportunities from PHI view • Conclusion

32. Conclusion • Every country or market is different regarding • development, • statutory health care system, • affinity and reliance to insurance in general and PHI in particuar • legislation • competition • In-depth market analysis is obligatory

33. Thank you for your Attention

34. Back-up

35. Status • Location Cologne: Successful beginning with excellent utilization (currently 2.000 patients) • Conceptual enhancement Aim„Integrated provision of care“ • 2 other locationscurrently being planned Business model • Quality oriented out-patient treatment with focus on evidence-based and dialoguing medicine, prevention • Physicians as health-manager with network-know-how, attendance to patients throughout all stages of care provision – based on tried & tested high quality treatment-methods (cross-sector) • Savings in treatment of patients with chronic diseases Providing care

36. DKV is a key stakeholder in the hospital market • 24 own hospitals, 4,900 beds • 33 managed hospitals, 8,100 beds • 2 own senior residences • 17 managed senior residences • 13 service companies • 18,830 employees • 1.4 billion Euro turnover • Share DKV: 20.3% • 33 hospitals, 7,800 beds (acute care, rehabilitation) • 1 own senior residence • 6,900 employees • 360 Million Euro turnover • Share DKV: 12.47%

37. Best Care 15.08.04 • Phone call: Diagnosis slipped disc, heavy pains + crippling • Staff health-hotline verifies diagnosis per fax,names different BC-experts • Customer choose BC-expert in Aachen • Appointment at 11.30 am, bank transfer of 500 € allowance • Extensive examination by BC-expert • Successful surgery 8.30 am • patient discharged 4 • days after surgery. • now 2 weeks of • physiotherapy • patient is satisfied • and wants to start • working very soon. 9.30 am 11.30 am 4.30 pm Innovative insurance product

38. Involvement in establishing the first private health insurance in China, PICC Health Business launch within only 7 months • Organization • Personnel: 100 employees • Actuarial responsibility with DKV • Products – 1. generation • Health insurance: comprehensive and supplementary products / daily allowances • Individual and group products • Accident products • Sales • Beijing branch is operative; two further branches are planned for 2005 • Sales begin: 05/2005