The study analyzed financial, strategic, and tactical factors over a five-year period through both quantitative and qualitative methods, including a proprietary value creation methodology. The resulting observations and implications were used to determine the imperatives for high performance. 40 Insurers Quantitative Observations Analysis X Implications 5 Years Qualitative Imperatives Analysis The study evaluated each of the 40 insurers through a proprietary Cash Flow Return metric, achieved by dividing adjusted cash flow by invested capital over the five years studied. Because owners/investors will most likely draw capital away from companies with lower returns than their peers, achieving inferior cash flow returns is not sustainable in the long term. Cash Q4 (Superior Performers) Flow Top 25% ÷ = Cash Flow Q2 & Q3 Return Middle 50% Invested Q1 Capital Bottom 25% The insurers were then segmented into quartiles by Cash Flow Return, with the top 25% considered Superior Performers. EUROPEAN INSURER VALUE ANALYSIS 2