Federale Verzekering enters into agreement to acquire activities from BDM

Brussels, Antwerp - August 10, 2020 - The Belgian insurer Federale Verzekering has an agreement
to take over the authorized underwriting activities * of BDM, with the exception of marine
insurance. Specifically, it concerns the Property & Casualty insurance and policies for pleasure
craft for risks located in Belgium. Federale Verzekering opts for BDM's technical insurance knowhow,
the interesting HNWI target group, and technical insurance for B2B as well as niche insurance
products that are complementary to its own offer. The selling party is The Navigators Group, part
of the American The Hartford. The employment will be maintained. BDM remains operationally
independent. Nothing will change for the insurance brokers that BDM works with, nor for the end
customers. The acquisition is scheduled for approval in the autumn. After this, the acquisition can
be completed.

Diversification of insurance products and technical know-how

Federale Verzekering takes over the authorized underwriting activities of BDM in Property &
Casualty (fire, accidents and all kinds of risks) and pleasure craft. The marine insurance of BDM (in
Belgium and the Netherlands) is not part of the acquisition. This transaction is part of Federale
Verzekering's further growth plans and broadens the distribution channels and the product mix. This
acquisition will add approximately € 35 million in annual turnover to the turnover of Federale

Two years ago, Federale Verzekering also took over Optimco in Antwerp, which was the first
takeover in 100 years.

Federale Verzekering is interested in the technical expertise of BDM. The policies offered by BDM
concern technical B2B insurance - for example for machine breakdown and all risks electronics - in
addition to a lot of niche insurance products - for mobile homes, luxury cars and pleasure boats -
which are complementary to the own insurance products of Federale Verzekering. Furthermore, the
so-called high-net-worth individuals (HNWI), or wealthy individuals, are an important target group
for BDM.

BDM is committed to further, sustainable and profitable growth

BDM will continue to steer its own course, be able to further develop its own commercial approach
and be operationally independent. BDM's headquarters will remain in Antwerp. The employment
will be maintained. This is also necessary in the context of the growth plans. BDM grew by about
20% over the past four years, and that in a saturated (BOAR) market. BDM is committed to further,
profitable growth, now with a Belgian, stable parent company.

As an authorized underwriter, BDM offers its insurance products through brokers. The risk carrier
will from now on become Federale Verzekering. Until now, this risk was underwritten by ASCO
(Assurances Continentales - Continentale Verzekeringen nv), an insurer in the same group to which
BDM belonged. The activities of BDM that takes over Federale Verzekering are 80% B2B, with more
technically oriented BOAR insurance. About 20% is B2C, with specialized niche insurance policies for
expensive homes, luxury cars, old-timers, mobile homes, art and pleasure craft.

“We are very satisfied with our new parent company,” says Jos Gielen, CEO of BDM. “We think it is
very positive that the decision-making power of our shareholder is in Belgium, and that we will be
able to continue to steer our own course, with the support of Federale Verzekering”.

“BDM has specific insurance products in niche markets”, Tom Meeus, CEO of Federale Verzekering
explains the takeover. “They have the technical knowledge to create tailor-made policies for niche
markets, they are very welcome among brokers for their service and accessibility, and they are very
complementary to our own activities. Thanks to this broader product mix, we can grow even faster. ”

The acquisition is scheduled for approval in the autumn. After this, the acquisition can be completed.

Press release