Page 47 - ASCOT GROUP COMPLETE DOCUMENT (2)

Historically, life companies, and to a lesser extent fund companies, were setup and structured with
administration being the primary focus of management and staff. Rightly so, as their functions were
essentially as administration companies. For the Ascot Group, with many of the administration
functions being computerised and/or outsourced from outset, we can put sales at the heart of the
company and shift towards being a sales-focused company rather than one of administration. That is
not to say that we will weaken, or be light on compliance or governance, as both will be mainstays of
the operation, however, both will be undertaken as a way of obtaining good quality business, rather
than ‘business prevention’.

By only recruiting experienced financial services professionals we will endeavour to provide a higher
than normal standard of support to both clients and distributors.

With many cross-border multinationals withdrawing services from the emerging markets to focus on
domestic market opportunities, a significant supply shortage, along with increased commissions has
seen Ascot Life easily partner with a number of well-established distributors – ensuring a stream of
policies from around the world.

2. Current Competitors

There have been two major developments in the international / cross border space which have seen a
number of international life companies pulling out of the market in recent times:

 A number of emerging jurisdictions are insisting that life companies pull back on selling
international products in exchange for onshore licences, therefore granting access to greater
numbers of end consumers; and
 The consolidation of companies’ post-merger or acquisition.

These have resulted in distributors looking for viable alternative cross border investment vehicles.
Entering these markets with an international life company based in the Isle of Man will fill the product
gaps. It will also have the advantage that from outset, it will provide the necessary credibility and
confidence as most distributors in these markets have been selling Isle of Man based life companies’
products for over 40 years.

It should also be noted that with cross border product providers retreating from these markets the
demand has increased, and will continue to increase, throughout the emerging markets with the rise
in the newly affluent middle classes growing on a daily basis.