Description of Group Structure, Position of Česká pojišťovna

As at 31 December 2016, Česká pojišťovna was part of a group; the company at the pinnacle of that group’s holding structure is Generali CEE Holding B.V. (the “Holding Company”). The ultimate controlling entity of Česká pojišťovna is Assicurazioni Generali S.p.A., which held a 100% stake in the voting rights attached to the shares of Generali CEE Holding B.V. as at 31 December 2016. The Company’s sole shareholder is CZI Holdings N.V.

CZI Holdings N.V.

The company compiles a report on related-party transactions in accordance with Section 82 of Act No 90/2012.

Generali CEE Holding B.V.

Generali CEE Holding B.V. directs the business of its subsidiaries through an organisational unit based in Prague, Czech Republic. The Holding Company has operations not only in the Czech Republic, but also in Slovakia, Poland, Hungary, Romania, Bulgaria, Serbia, Slovenia, Montenegro and Croatia.

Česká pojišťovna Group Structure as at 31 December 2016

Description of Selected Companies within the Česká pojišťovna Group

Below we provide information on companies that form part of the Česká pojišťovna Group and are of fundamental importance either for the Company’s business or its capital position. Information on certain other companies that belong to the same group as Česká pojišťovna may be found in the Notes to the Consolidated Financial Statements for the Year Ended 31 December 2016 (in the section describing the subsidiaries and associates of Česká pojišťovna).

CP Strategic Investments N.V.

The end of 2012 was a time of restructuring, in which Generali PPF Holding’s operations in supplementary pension insurance and savings were concentrated within the Česká pojišťovna Group. Through CP Strategic Investments, Česká pojišťovna became the owner not only of Penzijní fond České pojišťovny, a.s., but also Generali penzijní fond a.s. In spring 2013, the companies’ governing bodies signed a project on a domestic merger by acquisition, effective as at 1 January 2013, with Generali penzijní společnost a.s. wound up as at the same date. In April 2014, Česká pojišťovna a.s. acquired the participating interest of a minor member to become the sole member of CP Strategic Investments N.V.

Penzijní společnost České pojišťovny, a.s.

Penzijní společnost České pojišťovny has long enjoyed leader status in the private pension savings sector in the Czech Republic. Its profit last year stood at a record CZK 652 million. At the end of 2016, it was managing savings of CZK 103 billion. The company has 1.2 million customers, and employers contribute to the pension plans of a quarter of a million of them.

Penzijní společnost České pojišťovny, through its extensive distribution network, reaches out to a wide range of customer segments. In addition to consultants and branches of the parent company, Česká pojišťovna, and Generali Pojišťovna, the company also works extensively with independent external networks of financial intermediaries, Czech Post (Česká pošta) and partner banks.

The company delivers a top-notch service. Secure access to www.klientskyportal.cz enables customers to control their account online. Daňový servis (Tax Service) makes it easier for them to capitalise on maximum tax concessions. The new-generation PEPA electronic portal was launched for financial advisers last year.

In 2017, Penzijní společnost České pojišťovny will concentrate on sales of children’s savings schemes, and on reaping the business opportunities presented to it by the increase in ceilings for drawing on tax advantages. Selected groups of customers under the age of 50 will be offered the chance to switch from the “transformed fund” to “participating funds”.

Generali Societate de Administrare a Fondurilor de Pensii Private S.A.

From the outset, this Generali pension management company has been an active player in the compulsory supplementary pension insurance market that emerged following the reform of the Romanian pension system in 2007. It manages two types of funds, ARIPI and STABIL.

The ARIPI (“Wings”) fund (compulsory supplementary pension insurance) is intended for customers aged 18 to 45 who are just entering the supplementary pension insurance system. The STABIL fund (voluntary supplementary pension insurance), on the other hand, is open to customers of all ages.

The ARIPI pension fund is the fifth largest pension fund in Romania with over 672,168 customers and EUR 588.7 million in funds under management (as at 31 December 2016).

Generali Real Estate Fund CEE a.s.

Generali Real Estate Fund CEE a.s. is an internally managed investment fund of qualified investors. This fund’s assets are managed by the investment company Generali Investments CEE, investiční společnost, a.s.

Generali Real Estate Fund CEE a.s. focuses primarily on the property market, investing in the stock of real estate companies. Additionally, the investment fund may invest in money market instruments, demand deposits, time deposits, government bonds, and receivables. The investment fund’s objective is to generate stable, long-term positive returns on the assets entrusted to it while achieving better liquidity, lower risk, and greater diversification than is possible when investing individually, and at the same time to maintain returns on investors’ funds above the level of interest rates offered by banks on medium-term time deposits.

The investment fund’s total assets at the end of 2016 were CZK 6.48 billion, while its net asset value was CZK 6.45 billion.

Česká pojišťovna ZDRAVÍ a.s.

Česká pojišťovna ZDRAVÍ a.s. (“ČP ZDRAVÍ”) is a subsidiary wholly owned by Česká pojišťovna a.s. Within the Group, ČP ZDRAVÍ maintains a strategic focus on a portfolio of insurance products associated with health, the provision of health care and solutions to customers’ hardship when they lose their source of income. For a number of years now, the product range has been closely interlinked with the products of the Generali Group’s other members in the Czech Republic. ČP ZDRAVÍ shares a sales network with its parent company, enabling it to leverage services offered by the biggest network of points of sale and insurance intermediaries.

A particularly positive aspect of 2016 is that the company managed to maintain its established level of written premiums (CZK 0.5 million) while staying profitable.

ČP ZDRAVÍ’s strategic plan is to press on with the buoyant trend in the basic metrics of new business and economic performance amid ongoing cuts in operating costs. In 2017, particular attention will continue to be paid to the health sector and the quest to identify opportunities for the creation of new insurance products designed to guarantee a superior standard of health care and after care and to reduce the impacts of illness and personal accidents.

We continue to work on our partnership with those who pay for and provide health services in order to expand the network of preferred healthcare facilities necessary to form a comprehensive range of insurance schemes for the provision of health services and professional medical assistance.

Improvements in the attractiveness and quality of the range of supplemental products offered as riders to Česká pojišťovna’s cornerstone life and non-life insurance programmes will remain a priority. Another area of ČP ZDRAVÍ’s added value is its capacity to respond readily to evolving market conditions and to launch new insurance products and schemes in a remarkably short time.

FINHAUS a.s.

FINHAUS a.s., formerly Generali Services CEE a.s. (up to 19 April 2016), was registered as an insurance agent and independent loss adjuster. This company originally provided claim settlement services to Česká pojišťovna and Generali Pojišťovna. Among other things, it was responsible for windscreen repair services, document digitising and archiving, the dispatch of postal items, a telephone support line for insurance sales, and sales per se. In the second half of 2015, it started phasing out operations other than insurance mediation.

Since the second quarter of 2016, FINHAUS has focused on delivering a comprehensive financial service encompassing the intermediation of insurance, supplementary pension insurance, building society savings schemes, mortgages and consumer credit.

In 2016, Česká pojišťovna became the sole shareholder after acquiring Generali Pojišťovna a.s.’s 20% share. This transaction was part of the process to consolidate and improve the transparency of the Generali financial group’s structure in the Czech Republic.

ČP Distribuce s.r.o.

ČP Distribuce s.r.o., formerly Generali Development s.r.o. (until 9 November 2016), having been purchased by Česká pojišťovna from Generali Pojišťovna a.s., is being transformed into an insurance intermediary. This process should be formally completed at the end of the first quarter of 2017.

ČP Distribuce s.r.o.’s primary task is to maintain wall-to-wall service provision for Česká pojišťovna customers at least at the same level as that prior to the amendment to the Insurance Act. This will see ČP Distribuce take over operations and services previously covered by the internal distribution network, including Česká pojišťovna branches.

GCP Foundation

The foundation’s mission is to support the achievement of goals and aims, by individuals and legal entities, that are beneficial to the public or whose support is in the public interest, particularly in the arts, health care, sports, social affairs, and education. In 2016, the GCP Foundation sponsored several dozen cultural, sports, educational, preventive, safety and charity projects and activities.