Barcelona, 05 de noviembre 2008 Third quarter Results Francisco Arregui, General Manager

Barcelona, 05 de noviembre

2008

Third quarter ResultsFrancisco Arregui, General Manager

2

Grupo Catalana Occidente

CONTENTS

Highlights

Quartly information (3Q08)

Investments

Solvency

3

1Grupo Catalana Occidente

4

GRUPO CATALANA OCCIDENTE

Group’s structure

Change in consolidation method since January 2008Atradius NV is the parent company of their subsidiaries including Crédito y Caución, S.A.

INSURANCE

COMPANIESMULTILINE

Fully consolidated companies

Companies consolidated using the equity method

CATOC VIDA79.20%

SALERNO 94100.00%

COSALUD100.00%

NORTEHISPANA99.78%

DEPSA100.00%

SEG. CATALANA OCCIDENTE

100.00%

SEGUROS BILBAO99.72%

PREPERSA100.00%

TECNISEGUROS100.00%

BILBAO VIDA99.72%

S.ÓRBITA99.72%

BILBAO TELEMARK

99.72%

100.00%

100.00%

CATOC SICAV84.09%

99.72%

HERCASOL SICAV33.82%

25.48%

ASITUR ASISTENCIA

28.54%

GESIURIS26.12%

BAQUEIRA BERET49.49%

ATRADIUS NV64.23%

CALBOQUER20.00%

INPISA DOS SICAV

GRUPO CRÉDITO Y CAUCIÓN

70.34%

SEGUROS BILBAO

FONDOS

BILBAO HIPOTECARIA

99.72%

MENÉNDEZ PELAYO

DE VALORES

C.O. CAPITAL AGENCIA

INSURANCE

COMPANIES

SPECIALTY INSURANCE

RELATEDCOMPANIES

INVESTMENT

COMPANIES

OTHER

COMPANIES

5


Overview of Grupo Catalana Occidente

Over 140 years of history

Stable strategy over time

Well – established insurer

Wide range of insurance services

Focused on profitable growth

Target market: individuals and SMEs

Strong national presenceover 1,000 officesaround 20,000 agents

Professional agency network

6


Volume evolution

2,0361,936

1,862

1,730

553

852

1,117

1,298 1,300

1999 2000 2001 2002 2003 2004 2005 2006 2007(figures in million of euros)

12.2%

54.1%

31.1%

16.2%

0.2%

33.1%

7.6%

4.0%

5.2%

Growth history – multiplying by 3.7

7


Volume proforma evolution

3,125

2007 prof(cifras en millones de euros)

62.0%

Growth history – multiplying by 5.7

1,9361,862

1,730

553

852

1,117

1,298 1,300

1999 2000 2001 2002 2003 2004 2005 2006

12.2%

54.1%

31.1%

16.2%

0.2%

33.1%

7.6%

4.0%

8


Demonstrating capacity for growth while improving profitability

(figures in million of euros)Consolidated profit Consolidated profit IFRS Attributable profit Attributable profit IFRS

175.5

249.5

113.9

53.241.5

76.4

41.033.1

291.4

127.5

90.6

39.830.031.5

41.1 50.1

234.7

191.4

137.6

103.6

1999 2000 2001 2002 2003 2004 2005 2006 2007

Attributed profit multiplied by 7.5

9


Combined ratio

Combined ratio declined 20 points

99.7%

93.2%92.4%

90.2%

99.9%

102.3%

92.7%

99.1%99.3%

96.7%92.6%91.1%

87.7%

82.7%

90.8%95.0%

80.5%

92.7%

94.5%

109.3% 110.4%

104.6%

98.5%

101.2%

89.6%

117.7%

91.0%

88.8%88.0%

91.8%

87.1%

78.9%

81.3%

78.4%79.7%

87.4%

88.6%

104.7%

108.2%

102.6%

99.6%

88.3%87.3%

93.9%

95.7%

75%

80%

85%

90%

95%

100%

105%

110%

115%

120%

125%

1999 2000 2001 2002 2003 2004 2005 2006 2007

AUTO

CREDIT

MULTIRISK

NON LIFE

RESTOOF LINES

10

Ranking’s position

11

5

5

15

4

7

3.47%

4.64%

3.69%

2.37%

6.46%

5.12%

Total

Total Life

Total Non-Life

Multirisk

Auto

Rest of Lines

Source: ICEAFigures of the Spanish market

160.5%Credit


Improving market position

6

8

12/31/07 06/30/08

11

2Highlights

12

Inclusion of the Atradius Group

Markets and economies’ situation

HIGHLIGHTS

13



HIGHLIGHTS

14

INCLUSION OF THE ATRADIUS GROUP

Transaction’s structure

ATRADIUS N.V.

CyC (Holding)SRe DB SO

25.0% 9.1% 1.7%

ESP GES CON GCO

8.5% 11.3% 9.9% 70.3%

ESP GES CON GCO

64.2%

CyC, SA

100%

ESP

Current situation

ESP GES CON GCO

ATRADIUS N.V.

21.7%

SRe DB SO

34.9% 12.8% 2.4%

7.8% 7.8% 41.2% 43.2%

28.2%

100%

SCO

ESP GES CON GCOESP CON GCO

CyC, SA

SRe DB SO

100%

SCO

Previous situation

15

1,513

2,0361,936

1,862

1,730

553

852

1,117

1,298 1,300

2,429

1999 2000 2001 2002 2003 2004 2005 2006 2007 3Q07 3Q08

12.2%

54.1%

31.1%

16.2%

0.2%

33.1%

7.6%

4.0%

5.2%


Premiums evolution

(figures in million of euros)

60.5%

16


Business Composition

Geographic diversificationLines’ diversification

Spain67%

France4%

United Kingdom5%

Italy3%

Germany5%

Netherlands4%

Rest EEC7%

Rest of Countries

5%

Auto

14%

Rest of lines

8%

Credit48%

Life

18%

Multirisk11%

PP +MF1%

17



HIGHLIGHTS

Combined ratio

The value of GCO’s share

18

MARKETS AND ECONOMIES’ SITUATION

Combined ratio evolution

82.2%

99.7%

93.2%92.4%

90.2%

99.9%

102.3%

92.7%

99.1%99.3%

95.0%

90.9%

96.7%92.6%91.1%

87.7%

82.7%

90.8%95.0%

80.5%

92.7%

76.0%

94.5%

109.3% 110.4%

104.6%

98.5%

101.2%

89.6%

117.7%

91.0%

91.3%

90.0%

106.4%

88.8%88.0%

91.8%

87.1%

78.9%

81.3%

78.4%79.7%

87.4%

82.4%

88.6%

104.7%

108.2%

102.6%

99.6%98.5%

88.3%87.3%

93.9%

87.6%

95.7%

AUTO

CREDIT

MULTIRISK

NON LIFE

REST OF THE LINES75%

1999 2000 2001 2002 2003 2004 2005 2006 2007 3Q

2007

3Q

2008

80%

85%

90%

95%

100%

105%

110%

115%

120%

125%

19



HIGHLIGHTS

Combined ratio

The value of GCO’s share

20

THE VALUE OF GCO’s SHARE

Stock market performance

Grupo Catalana Occidente Ibex 35 Dow Jones Europe Stoxx Insurance

2002 2003 2004 2005 2006 2007 11/04/08

3.9 euros4.9 euros

Share price multiplied by 3.5

8.8 euros

14.7 euros

27.5 euros

22.9 euros

14.2 euros

21


Book value

22.9

14.8

12.412.412.9

11.1

8.6

5.6

3.93.53.43.22.8

3.1 3.34.3 4.0

4.9

8.8

14.7

14.2

27.5

1999 2000 2001 2002 2003 2004 2005 2006 2007 3Q08 11/04/2008

Book value plus properties’ unrealized capital gains per share Price per share

22


Strong fundamental value

(million of euros)(euros per share)

200 400 600 800 1,000

971.30

511.00

870.30

Book Value

Properties’ unrealised capital gains

VIF Life (12/31/07)*

8.09 €/s

12.35 €/s

19.61 €/s

Value of GCO’s per share

* Certified by Watson Wyatt 10/28/08VIF – Value In Force

Goodwill?

VIF non Life

23


Shareholder’s remuneration

Constant and increasing policy

Dividend improvement during last year

0.182 0.200

Jul & Oct2007

Jul & Oct2008

10%0.34

0.42

0.86

1.15

1.60

1.96

0.25 0.400.48

0.290.220.200.190.19

EPS DPS

2001 2002 2003 2004 2005 2006 2007

DPS evolution

37.9%

20.0%

31.8%

10.0%5.3%2.2%3.3%

DPS cagr: 16.7%

CAGR – Compound Annual Growth RateEPS – Earning per shareDPS – Dividend per share

24

33Q08 EvolutionFigures published in CNMV the 30th October 2008. Figures consolidated no audited.

25

THIRD QUARTER EVOLUTION

Continuous growth of the income

3Q 2008

3Q 2007

3rd. Q 2007 3rd. Q. 2008 % CHG.% CHG.

PRO - FORM

Multirisk 271.0 280.0 3.3%Credit 320.1 1,169.1 265.2% 4.6%Rest of Lines 204.5 210.1 2.7%Auto 336.8 334.3 -0.8%

Total Non-Life 1,132.4 1,993.4 76.0% 3.3%Total Life 380.9 435.6 14.4%Total Premiums 1,513.3 2,429.0 60.5% 5.1%Service Revenues 31.4 125.5 299.8% 3.1%TOTAL VOLUME 1,544.7 2,554.5 65.4% 5.0%Return on Investments 278.2 291.6 4.8%TOTAL REVENUES 1,822.9 2,846.1 56.1% 5.0%

Pension Plan Contributions 43.0 49.7 15.6%Mutual Fund Contributions 24.4 -13.3 -----


Multirisk17%

Rest of Lines13%

Auto21%

PP + MF4%

Total Life25%

Credit20%

Multirisk11%

Rest of Lines

9%

Auto14%

PP + MP1%

Total Life18%

Credit47%

26

THIRD QUARTER EVOLUTIONClaims ratio

2007 2008

56.3%

60.7%

56.3%56,9%

54.1%

61.1%60.3%

55.3%

61.7%

62.2%58.5%

38.6%

42.3%

53.7%54.2%

58.0%

47.7%

55.9%

47.2%

52.3%

40.0%

53.9%

62.2%

81.5% 82.3%

77.2%

69.5%

72.2%

59.3%

85.0%

60.3%63.0%60.7%

78.5%

69.9%68.7%

71.7%

68.0%

60.2%62.4%

60.2%61.9%

70.1%65.3%

66.1%

58.5%

73.4%71.5%

73.0%70.7%

68.6%

57.6%57.2%

64.1%

58.2%

30%

40%

50%

60%

70%

80%

90%

100%

AUTO

CREDIT

MULTIRISK

NON -LIFE

REST OF LINES

1999 2000 2001 2002 2003 2004 2005 2006 2007 3Q 3Q

27

THIRD QUARTER EVOLUTION3Q08 Profit and Loss Account


3Q 2007 3Q 2008 % CHG.

Multirisk 13.6 22.0 62.3%Rest of Lines 35.4 44.9 26.9%Auto 34.2 25.3 -26.0%Life 7.2 11.8 64.8%

TECHNICAL RESULT AFTER EXPENSES 90.3 104.0 15.2%Investment income 47.2 49.4 4.7%TECHNICAL – FINANCIAL RESULT 137.5 153.4 11.6%Corporation tax 37.1 37.7 1.6%

PROFIT ON ORDINARY ACTIVITIES 100.4 115.7 15.3%

ATRADIUS & CyC PROFIT ON ORDINARY ACTIVITIES 97.4 -30.1 -130.9%

NON RECURRING PROFIT 28.4 29.4 3.4%

CONSOLIDATED PROFIT 226.2 115.0 -49.2%Profit attributed to the parent company 180.9 131.9 -27.1%Minorities 45.3 -16.9 ----

28

THIRD QUARTER EVOLUTIONChange in equity

Unrealized capital gains on property assets 547.4 M€ (493.4 M€ at Dec. 2007)

Equity at 12/31/07 1,533.9Consolidated profit 3Q08 115.0Dividends paid -59.8Change in valuation adjustments -206.2Inclusion of minorities from Atradius and CyC, SL 242.7Change in consolidation 41.5Other 0.0

Total changes in equity 133.2Equity at 09/30/08 1,667.1

Financial debt 115.8

Equity post debt at 09/30/08 1,782.9


Solid balance sheet

29

4Investments

30

INVESTMENTS

Funds under management

8,028 M€ (+8.72% 3Q07)

Adequate portfolio diversification

Main investment in fixed income

Limited exposure to equities: blue chips

Mutual funds: Atradius – mainly fixed income

Other investments: subsidiaries and receivables from reinsurance

?

Short term864.5

Properties1,038.4

Other investments328.3

Fixed income3,525.3

Equities593.9

Client risk867.0


8.3%

49.2%

12.1%

4.6%

14.5%

Mutual Funds810.4

11.3%

31

Corporate2,144.6

Government2,245.2

INVESTMENTS Fixed income diversification

More than 50% invested in Government*

Average rating AA

Significant position to short term

* Moody’s sep’08: Credit Analysis Sovereign Spain – Spanish government rated as Aaa

?

Short term864.5

Properties1,038.4


Fixed income3,525.3

Equities593.9

Client risk867.0


8.3%

49.2%

12.1%

4.6%

14.5%

Mutual Funds810.4

11.3%

32

Prime *

911.9

Other126.5

INVESTMENTS Properties

* Prime: singular buildings placed at the main Spanish cities as well as other buildings at emblematic zones** Inmoseguros – DGS’s authorized agency

Own use

On rentON RENT

400.0

€249.5

UNREALISED CAP. GAINS

OWN USE147.4

396.9

641.5

BOOK VALUE OWN USE

BOOK VALUEON RENT

241.5

Insignificant exposure to residential sector

More than 50% of properties valuated until July 2007

Last valuations in line to previous

Values under review: Richard Ellis value > Inmoseguros value**

Other singular properties still in process of review

?

Short term864.5

Properties1,038.4


Fixed income3,525.3

Equities593.9

Client risk867.0


8.3%

49.2%

12.1%

4.6%

14.5%

Mutual Funds810.4

11.3%

UNREALISED CAP. GAINS

33

5Solvency

34

2003 2004 2005 2006 2007 3Q08

293

521

986

1,343

1,534

1,667

Figures in million of euros2003 under PGC, rest under NIFF

SOLVENCY

Strong capital position

Change in valuation

-206.2

Consolidated result 3Q08

115.0

Dividends-59.8

Minorities Atradius and CyC,SL

242.7Consolidation adjustments

41.5

Stability and growth

35

SOLVENCY

Solvency I

347.2

1,975.7

1,628.5

December 2007

Grupo Catalana Occidente ex Atradius

519.2

2,235.8

1,716.6

3Q 2008

Grupo Catalana Occidente con Atradius

Minimum capital requirementAvailable capitalExcess capital


36

Minimum capital requirementAvailable capitalExcess capital

SOLVENCY

Solvency I versus Solvency II at 12/31/07

624.5

2,121.9

1,497.4


Solvency I


Solvency II

347.2

1,975.7

1,628.5


37

SOLVENCY Rating

AStable

A -Stable

A2

AStable

*

* Done to the main insurance companies of the Group by the segmented rating method

A2

A -Stable

*n.a.

n.a.

S&P considers GCO a strong capitalized company

38

The value of Grupo Catalana Occidente

39

THE VALUE OF GRUPO CATALANA OCCIDENTE

Solid and profitable business

Credit: long term investment

Important excess capital

Insignificant financial debt

Conservative and prudent investment policy

40

DISCLAIMER

This presentation includes oral and written “forward-looking statements” with respect to certain plans and its current goals and expectations relating to its future financial condition, performance and results. These forward-looking statements represents a simple forecast whose formulation does not represent a guarantee with respect to the future performance of the Company. By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances which may be beyond the Company’s control such as general economic conditions, performance of financial markets, the frequency and severity of insured loss events, mortality and morbidity levels and trends, persistency levels, interest rate levels, currency exchange rates, general competitive factors, changes in laws and regulations, changes in the policies of governments or regulatory authorities.

The Company undertakes no obligation to update the forward-looking statements made in this presentation or any other forward-looking statements.

41

THANK YOU FOR YOUR ATTENTION

For further information please contact:

[email protected]

www.grupocatalanaoccidente.com

Documents

Barcelona, 05 de noviembre 2008 Third quarter Results Francisco Arregui, General Manager