CAMPO CONTENIDO ENCABEZADO PRINCIPAL DEL PEDIMENTO

Members of the Supervisory Board of SNS REAAL are also member of the Supervisory Board of SRLEV NV. For this reason, meetings of the Supervisory Board of SNS REAAL are combined meetings, and the agenda of the Supervisory Board includes items specifically relevant to SRLEV. As a result, the following paragraphs are an extraction of the specific items in relation to SRLEV of the meetings of the members of the Supervisory Board.

For a full version of the Report of the Supervisory Board of SNS REAAL we refer to the annual report of SNS REAAL, available on www.snsreaal.nl.

In 2011, the European debt crisis left a big mark on the economy, the financial sector and, consequently, also on SRLEV. Although it looked as though 2010 showed the first signs of economic recovery, in the second half of 2011, Europe was faced with the consequences of having (too) high a level of sovereign debts.

In the Netherlands there was a great deal of attention to the unit-linked insurance policies, changes to the pension system and - especially in the first six months of 2011 - to the variable remuneration for executives in the financial services industry. Unfortunately, judging from critical public opinion, confidence in the financial services industry does not yet seem to have been restored.

14.1 Main topics and discussions

In these turbulent times a wide variety of issues and developments required the attention of the Supervisory Board. SRLEV was faced with a persistent low interest rate, rising and very volatile risk surcharges, turmoil over the euro, a tight funding market, a great deal of media attention for pensions, prolonged difficult real estate market conditions, changing legislative and regulatory requirements and changes in the supervisory and political climate. The Supervisory Board regularly discussed the manner in which SRLEV should adapt itself to these conditions and the pressure this is causing on the organisation. The main themes were SRLEV's capital position, risk management and risk appetite, SRLEV’s business model, the changing and especially the more stringent regulatory environment, a large number of projects, good customer service and optimising the focus on customers and customers’ interests.

These themes are also included in the management letter of the external and internal auditor.

14.2 Composition of the Supervisory Board

As per 20 April 2011, the number of Supervisory Board members is reduced to nine. Hans van de Kar and Henk Muller stepped down and Jaap Lagerweij and Robert-Jan van de Kraats were reappointed. Piero Overmars succeeded Hans van de Kar as Deputy Chairman of the Supervisory Board.

During 2011 Jan Nijssen was appointed as member of the Supervisory Board. With the appointment of Jan Nijssen, the knowledge and experience in the area of financial services was further expanded on the Supervisory Board.

14.3 Meetings of the Supervisory Board

14.3.1 Main topics

In 2011, the Supervisory Board met twelve times, two of which via telephone conference: in February, March, April, May, June, August, September, October, November and December. None of the Supervisory Board members were frequently absent. More detailed information on the main topics discussed can be found in the annual accounts of SNS REAAL 2011, chapter Report of the Supervisory Board.

14.3.2 Presence of the external auditor

The external auditor is present during all the meetings of the Audit Committee and at least once a year during a meeting of the Risk Committee. Optionally, the external auditor attends meetings of the Supervisory Board, once during 2011 at the meeting in March. During this meeting, amongst other subjects, the Annual Report 2010 was discussed.

14.4 Committee meetings

The Supervisory Board has four committees:

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In the course of 2011, the Credit Committee was merged with the Risk Committee. More detailed information on the topics discussed in and developments of the committees can be found in the Annual accounts of SNS REAAL 2011, chapter Report of the Supervisory Board. More detailed information on the composition of the committees and the regulations of each committee can be found on www.snsreaal.nl.

Every committee prepares the decision-making of the Supervisory Board in respect of the duties assigned to it and reports to the Supervisory Board.

14.5 Closing words

The Supervisory Board would explicitly like to express its gratitude and appreciation to all SRLEV employees for the work performed over the past year, and especially for their involvement and commitment. Unfortunately, economic and financial conditions in 2011 were once again turbulent. This situation forced the management to ask not just senior management, but all employees to take a step back in their variable remuneration. Moderation of the fixed annual income will come up for discussion with the trade unions in 2012. Despite these developments and the persistent negative sentiment towards the financial services industry, SRLEV personnel continue to dedicate themselves with great enthusiasm to SRLEV. The Supervisory Board is well aware that this is not self-evident and wishes to express its deepest gratitude to them.

SRLEV’s management again faced a great deal of pressure this year. Despite the occasional instances in which the pressure under which management had to perform was exceptionally high, cooperation with the Supervisory Board remained outstanding. We would like to express our gratitude to them for that too.

Finally, the Supervisory Board would like to express its gratitude for the work performed by Hans van de Kar and Henk Muller in their many years of service as Supervisory Board members.

Alkmaar, 25 April 2012

On behalf of the Supervisory Board, Rob Zwartendijk, Chairman

Corporate governance