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Driving forward key Group Marketing and strategic growth Knowledge Management networking meeting initiatives Results for the year to 31 December 2016 9 March 2017 23 November 2016 0 The leading specialist provider of professional

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SLIDE 1

Group Marketing and Knowledge Management networking meeting

  • 23 November 2016

Driving forward key strategic growth initiatives

Results for the year to 31 December 2016

9 March 2017

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SLIDE 2

1

1,800

Offices Countries 2016 Revenue Insurance focus Employees

1884

Established

72 29 £169m 100% 9/10 Staff recommend CT as

a great place to work

The leading specialist provider of professional services to clients throughout the global insurance market

Management Services

provides end-to-end management of insurance companies and associations

Adjusting Services

provides loss adjusting services across the aviation, energy, marine, property, casualty and special risks sectors

Insurance Support Services

provides a range of outsourced professional, technology and support services

Professional Services

Owns and consolidates

international life insurance businesses, which are primarily in run-off

Life

Charles Taylor plc 2016 results presentation 9 March 2017

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SLIDE 3

We have a robust investment case

2

Strong fundamentals

  • Unrivalled breadth of

insurance-related professional services

  • Expert, knowledge of the

insurance market

  • Enormous, worldwide base
  • f technical resource,
  • Culture of long-term

partnership and service

  • Stable, trusted and well-

governed

  • Track record of innovation

Consistently profitable

  • Diversified, resilient business
  • Reliable revenue and profit

streams

  • Solid cashflows
  • Well supported dividend

Positive prospects

  • Driving forward four key

strategic initiatives:

  • Build InsureTech capability
  • Grow medical claims and

assistance

  • Extend outsourced services
  • Become second syndicate

ready

  • Driving organic growth in the

core business

  • Healthy acquisition, JV and

business investment pipeline

  • Fragmented competition
  • US$4.8 trillion global market1

We aim to deliver reliable income streams, with sustainable year-on-year growth in earnings, while investing to create opportunities to drive higher future earnings growth in the medium to longer term.

  • 1. Source: BusinessWire, 2 February 2017

Charles Taylor plc 2016 results presentation 9 March 2017

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SLIDE 4

7.8 8.5 10.m 13.0 14.8 2012 2013 2014 2015 2016 107 113 122 143 £169 2012 2013 2014 2015 2016

We are a successful, growing business

3

Revenue, £m Adjusted earnings, £m*

Charles Taylor plc 2016 results presentation 9 March 2017

+58% +90%

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SLIDE 5

Management Services

Key growth themes in core businesses

Adjusting Services Insurance Support Services Life Insurers

We are delivering organic growth in our existing core businesses

2016 highlights

  • Grew The Standard Club’s tonnage
  • Developed ‘Acclaim’ claims management system for

The Standard Club

  • Achieved 95% renewal rate and attracted new

members to The Strike Club

  • Completed successful renewal for Signal with 99%

retention rate and new members

  • Enabled SafeShore WC programme to grow
  • Established Construction & Engineering adjusting

service

  • Appointed as a lead adjuster on international sporting

construction project

  • Opened Peru office
  • Appointed Regional Head for the USA
  • Recruited senior adjusters

Deliver increased revenues by growing alongside the mutual insurers managed by Charles Taylor, offering new products and services, and winning new contracts Grow adjusting revenues by expanding into new locations and expanding the services

  • ffered from each office

Generate new revenues by extending our professional services capabilities for global insurance markets Secure capital releases by acquiring and consolidating life insurance businesses

  • Recruited InsureTech Latin America sales director
  • Invested in DUA solutions business and partnered with

copy virtualisation business

  • Added functionality to the London Market Experts

Database

  • Appointed CTIS finance and operations directors
  • Won systems contracts from insurance brokers
  • Secured new client wins for TRAX
  • Agreed to acquire books of life business from Zurich

International – our fifth life acquisition in five years

  • Progressed consolidation of Scottish Widows

International and Nordea Life & Pensions into the Group’s wholly owned life business

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SLIDE 6

And driving forward our strategy is to grow through targeted investments – 2016-17 strategic initiatives:

5

We are investing to ensure an unrivalled range of services, outstanding service levels and ongoing innovation for our clients. By doing so aim to deliver attractive long-term returns for our investors Extend outsourced services

  • Expanded Charles

Taylor TPA globally Q2 2016

  • Agreed to acquire a

fund administration business to extend life servicing Q4 2016

  • Utilising CEGA’s volume

claims handling capabilities

Grow medical claims/assistance

  • Acquired CEGA Group

Q3 2016

  • Has longstanding

insurer relationships

  • Enables medical and

assistance services to be offered to CT’s clients

  • Significant joint

marketing opportunities

Build InsureTech capability

  • Launched Charles

Taylor InsureTech Q1 2015

  • Acquired sizeable stake

in Fadata in late 2015

  • Opened Technology

Centre of Excellence in Latin America

  • Implementing life policy

admin system in Peru

Become second- syndicate ready

  • Established turnkey

managing agency in Q1 2015

  • Recruited senior Lloyd’s

market staff

  • Developed systems and
  • perational capability
  • Actively marketing for

second syndicate Global market US$190bn3 Global market US$18bn2 Global market US$166bn1 Lloyd's capacity £27.7bn4

Charles Taylor plc 2016 results presentation 9 March 2017

  • 3. Source: IBISWorld
  • 2. Source: Finaccord
  • 1. Source: Gartner
  • 4. Source: Insurance Insider
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SLIDE 7

Charles Taylor Group results 2015 2016 % change Revenue (£m) 143.4 169.3 18.0 Adjusted PBT (£m) 14.2 14.8 4.0 Statutory PBT (£m) 12.8 10.7 (16.3) Adjusted earnings (£m) 13.0 14.8 13.5 Adjusted EPS (p) 19.98 22.27 11.5 Statutory EPS (p) 18.61 15.85 (14.9) Dividend per share (p) 10.00 10.50 5.0

We performed solidly overall in 2016, building on the strong growth achieved in 2015

6 Charles Taylor plc 2016 results presentation 9 March 2017

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SLIDE 8

Our performance demonstrates the strength of our diversified business model

Segmental results 2016 (£m) Revenue Operating profit 2015 2016 % change 2015 2016 % change Management 50.7

54.7 7.9

8.8

8.7 (2.0)

Adjusting 59.0

65.4 10.9

1.7

1.8 7.5

Insurance Support 32.1

47.0 46.4

4.5

3.8 (14.9)

Unallocated

  • n/a

0.2

  • n/a

Professional Services 141.9 167.2 17.9 15.2 14.3 (6.0) Insurance Companies 4.8

4.7 (1.9)

0.2

2.0 758.1

Eliminations (3.2)

(2.7) n/a

  • n/a

Group 143.4 169.3 18.0 15.5

16.3

5.5

7

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SLIDE 9

Net debt (£m) Annual average net debt At 31 Dec 2014 32.6 24.6 At 31 Dec 2015 9.9 5.2 At 31 Dec 2016 37.5 12.9 Adjusting Services working capital WIP (months) Debtors (months) Working capital (months) At 31 Dec 2014 4.8 4.0 8.8 At 31 Dec 2015 4.8 4.3 9.1 At 31 Dec 2016 4.6 4.5 9.1 Retirement benefit

  • bligation (£m)

Net of deferred tax At 31 Dec 2014 41.5 33.2 At 31 Dec 2015 39.6 32.4 At 31 Dec 2016 52.5 43.5

8

  • Following investments in CEGA and Fadata, net debt

returned to normal levels

  • CEGA Group has additional £5m facility
  • We are managing the Group’s cash position while

investing for growth

  • DB deficit rose due to falling bond yields

and reduced corporate bond spreads

  • Multi year recovery plans are in place
  • Adjusting Services’ working capital flat in 2016
  • We are focused on managing down Adjusting Services’

working capital

Net debt has returned to normal levels

Charles Taylor plc 2016 results presentation 9 March 2017

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SLIDE 10

Outlook 2017

  • We are performing in line with the Board’s expectations:

– Management Services is performing well and is expanding its services for mutuals – Adjusting Services achieving top line growth while investing in people and offices – Insurance Support Services is capitalising on growth initiatives – Life Insurers is acquiring and consolidating international life companies

  • We are successfully executing our business strategy for growth

– Delivering on four key growth initiatives – Driving forward numerous initiatives to grow the Group’s core businesses

  • We are executing a targeted strategy to source attractive opportunities for

acquisitions, joint ventures and business investments across all business lines

9 Charles Taylor plc 2016 results presentation 9 March 2017

We aim to deliver reliable income streams, with sustainable year-on-year growth in earnings, while investing to create opportunities to drive higher future earnings growth in the medium to longer term.

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SLIDE 11

Appendices

10 Charles Taylor plc 2016 results presentation 9 March 2017

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SLIDE 12

11 Charles Taylor plc 2016 results presentation 9 March 2017

An unrivalled breadth of professional services and solutions

  • 1. Insurance

Management Services

  • 2. Underwriting &

Broking Support Services

  • 3. Loss Adjusting

Services

  • 4. Claims Management

& TPA Services End-to-end management of insurers and insurance programmes under a long- term "partnership" model Bespoke, service-led support to underwriters, underwriting vehicles and brokers Specialist, high quality adjusting and other related technical services, spanning all major lines and geographies Specialist, high-quality third party claims administration and related services across the full claims lifecycle

  • 5. Life, Fund

Administration & Investment Services

  • 6. Risk Management and

Assurance Services

  • 7. Medical & Security

Assistance, Travel Risk & Claims Mgmt. Services

  • 8. Insurance

Technology Services Bespoke, high-quality administration & investment management for international life, fund & non-life insurance clients Advisory and outsourcing services to support the safe

  • peration & governance of

regulated & non-regulated insurance entities End-to-end, integrated assistance & travel claims services that optimise customer experience &

  • perational efficiency

Technology-related solutions & services to help insurance businesses drive change

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SLIDE 13

Results

12

Year to 31 December 2015 2015 2016 Revenue (£m) 143.4 169.3 Adjusted operating profit (£m) 15.5 16.3 Finance costs/other (£m) (0.9) (1.3) Non-controlling interests before tax (£m) (0.3) (0.2) Adjusted profit before tax (£m) 14.2 14.8 Tax (£m) (1.2) 0.0 Adjusted earnings (£m) 13.0 14.8 Adjusted earnings per share (p) 19.98 22.27

Note: Small rounding differences arise in the total amounts above Charles Taylor plc 2016 results presentation 9 March 2017

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SLIDE 14

Segmental results

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Year to 31 December 2016

Management Adjusting Insurance Support Unallocated Total Life Insurers Eliminations/

  • ther

Total

Revenue from external clients 54.7 65.4 44.4 0.0 164.6 4.7

  • 169.3

Revenue from other operating segments

  • 2.7
  • 2.7
  • (2.7)
  • Total revenue

54.7 65.4 47.0 0.0 167.2 4.7 (2.7) 169.3 Depreciation and amortisation (1.0) (1.3) (1.0)

  • (3.3)

(0.4)

  • (3.6)

Other expenses (45.1) (62.3) (42.2) (0.0) (149.7) (2.3) (2.4) (154.4) Operating profit 8.7 1.8 3.8

  • 14.3

2.0 (5.1) 11.2 Investment and other income 0.8 Non-controlling interests before tax (1.3) Profit before tax 10.7

£m Professional Services Insurers Adjustments Group

Year to 31 December 2015

Management Adjusting Insurance Support Unallocated Total Life Insurers Eliminations/

  • ther

Total

Revenue from external clients 50.7 59.0 28.9 0.0 138.6 4.8

  • 143.4

Revenue from other operating segments

  • 3.2
  • 3.2
  • (3.2)
  • Total revenue

50.7 59.0 32.1 0.0 141.9 4.8 (3.2) 143.4 Depreciation and amortisation (1.3) (1.7) (0.6)

  • (3.7)

(0.4)

  • (4.0)

Other expenses (40.5) (55.6) (27.0) 0.2 (123.0) (4.2) 1.7 (125.5) Operating profit 8.8 1.7 4.5 0.2 15.2 0.2 (1.6) 13.9 Investment and other income 0.2 Non-controlling interests before tax (1.2) Profit before tax 12.8

Charles Taylor plc 2016 results presentation 9 March 2017 Note: Small rounding differences arise in the total amounts above

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SLIDE 15

14 Charles Taylor plc 2016 results presentation 9 March 2017

(£m) Net debt at 31 Dec 2015 (9.9) Cash generated by operations 15.9 Foreign exchange impact on net monetary assets 6.6 Purchases of tangible and intangible assets (7.6) Interest paid (0.2) Income taxes paid (0.9) Proceeds from issue of shares 0.4 Payment of deferred consideration (8.2) Acquisition of investments (3.3) Acquisition of CEGA (23.5) Dividends paid (6.7) Net debt at 31 Dec 2016 (37.5)

Net debt bridge

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SLIDE 16

Free cash flow

£m 2015 2016 Operating cash flow before movement in working capital Change in working capital Change in insurance company net assets 17.3 (3.5) 3.4 16.5 (6.7) 6.1 Cash flow generated by operations Income tax paid Interest paid 17.2 (1.2) (0.9) 15.9 (0.9) (0.6) Net cash flow before movement in client funds Net capital expenditure Interest received 15.2 (6.8) 0.1 14.4 (7.6) 0.4 Free cash flow 8.6 7.2

15 Charles Taylor plc 2016 results presentation 9 March 2017 Note: Small rounding differences arise in the total amounts above

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SLIDE 17

Segmental balance sheet

16

£m 31 December 2015 31 December 2016 Professional Services Owned Insurance Companies Group Professional Services Owned Insurance Companies Group Management Services 5.4

  • 5.4

3.6

  • 3.6

Adjusting Services 149.6

  • 149.6

209.6

  • 209.6

Insurance Support Services 46.5

  • 46.5

106.0

  • 106.0

Unallocated and eliminations 22.0

  • 22.0

20.4

  • 20.4

Owned Insurance Companies

  • 1,089.5

1,089.5

  • 1,253.0

1,253.0

Assets for sale

  • 48.2

48.2

  • Total assets

223.5 1,137.7 1,361.2

339.6 1,253.0 1,592.6

– Non-current assets 77.8 2.4 80.2

120.0 2.0 122.0

– Current assets 145.7 1,135.3 1,281.0

219.6 1,251.0 1,470.6

Total assets 223.5 1,137.7 1,361.2

339.6 1,253.0 1,592.6

Current liabilities (105.3) (1,066.8) (1,172.1)

(172.7) (1,237.0) (1,409.7)

Deferred consideration (0.9) (7.3) (8.2)

(3.0)

  • (3.0)

Liabilities for sale

  • (28.8)

(28.8)

  • Net current assets

39.5 32.4 71.9

43.9 14.0 57.9

Non-current liabilities (55.0)

  • (55.0)

(102.8)

  • (102.8)

Deferred consideration (2.5) (5.1) (7.6)

(4.6) (2.4) (7.0)

Total liabilities (163.7) (1,108.0) (1,271.7)

(283.1) (1,239.4) (1,522.5)

Net assets 59.8 29.7 89.5

56.5 13.6 70.1

Non-controlling interests (1.5) (17.9) (19.4)

(2.1)

  • (2.1)

Equity attributable to owners of the Company 58.3 11.8 70.1

54.4 13.6 68.0 Charles Taylor plc 2016 results presentation 9 March 2017

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SLIDE 18

Retirement benefit schemes

Certain Group employees are members of one of four DB schemes operated by the Group. The schemes are subject to independent triennial valuations The Group also operates a DB schemes for certain employees in Indonesia. The schemes is not a material balance to the Group

17

Charles Taylor & Co Limited Retirement Benefits Scheme Richards Hogg Pension & Life Assurance Scheme ER Lindley & Co Limited Pension Plan Wm Elmslie & Sons 1972 Pensions & Life Assurance Fund

Last valuation date 1 July 2013 1 May 2016 1 July 2014 1 January 2015 Market value at valuation date £52.1m £22.6m £3.0m £3.6m Valuation/benefits % 65% 59% 111% 144% Investment return assumptions

  • Post retirement
  • Pre retirement

4.3% 4.5% 3.2% 3.7% n/a1 1.7% 1.9% 4.3% Salary growth n/a 3.3% 2.9% n/a Employer contribution rates as % of pensionable earnings (excl. deficit funding) n/a 20.8% 26.0% n/a Net deficit £34.6m £16.9m £0.6m £0.0m Estimated contributions 2017 £2.8m £1.6m £0.0m £0.0m

1. Pensions purchased through an annuity 2. Funding is reviewed at each valuation date Charles Taylor plc 2016 results presentation 9 March 2017

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SLIDE 19

Banking facilities

18

UK facilities Review date Currency Facility Available revolving credit facility November 2018 GBP 35,000,000 RBS overdraft headroom Annual GBP 2,500.000 HSBC overdraft headroom Annual GBP 2,500,000 Total UK facilities 40,000,000 Overseas facilities Review date Currency Spot rate Facility Citizens Bi-annual USD 5,000,000 1.22773 4,072,557 Hong Kong facility Annual USD 3,750,000 1.22773 3,054,418 Canadian facility Annual CAN 1,800,000 1.63970 1,097,762 Total overseas facilities 8,224,736 Senior Facilities term Loan (Fully repaid October 2018) (6,500,000)

Charles Taylor plc 2016 results presentation 9 March 2017

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SLIDE 20

19

Group Marketing and Knowledge Management networking meeting

  • 23 November 2016

Driving forward key strategic growth initiatives

Results for the year to 31 December 2016

9 March 2017