Page 11 - ASCOT GROUP COMPLETE DOCUMENT (2)

THE MARKET

An Older Population

The number of people aged over 60 will more than triple to over two billion by 2050, creating huge
extra demand for life-wealth solutions.

An Increasingly Wealthy Global Population

The number of middle class people worldwide will grow from 430 million in 2000 to 1.2 billion in 2030,
with two-thirds of this growth coming from India and China, creating significantly more wealth to
protect, and resulting in increased demand for life-wealth products especially in emerging markets.

Huge Potential for Further Growth in SAAAME Markets

As the SAAAME (South America, Africa, Asia and the Middle East) markets continue to expand, the
focus of investment and growth for life and wealth products is rapidly shifting to these emerging
markets. Those in emerging markets are eager to diversify and spread their holdings to invest into
global securities available in secure hard currencies.

GDP per capita has been consistently growing at 9% in China and at 4% in India over the past 20 years.
Yet most SAAAME markets still have life-wealth to GDP penetration of less than 3% and therefore offer
considerable room to grow.

The Top 5 Emerging Markets & The Middle Class

The world is in the throes of a major expansion in the middle class, particularly in emerging Asia. The
global middle class in emerging markets is expected to grow from under 2 billion consumers today to
nearly 5 billion within two decades.

By 2030 over 70 percent of China’s population could be middle class, consuming nearly $10 trillion in
goods and services, and between now and 2039, India [SC10] alone could add over 1 billion people to
the global middle class.

The top five emerging middle-class markets are China, India, Indonesia, Nigeria, and the Philippines. In
these countries, the middle class is set to become a prominent consumer force thanks not only to their
large size, but also their strong income growth.