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Distinctive. Choice.
FIAR 2013
Reinsurance strategies for companies in CEE
21st May 2013
Page 2
Overview
1 – The market participants
2 – Non-Life Market composition in CEE
3 – Current Reinsurance issue
4 – Outlook
Overview
Page 3
Types of market participants
In CEE there are three different kinds of market participants
• International companies– Companies or corporate groups operating directly or through subsidiaries on a large territorial
scale in Europe.– Where? Across whole Europe.– Who? E.g. Allianz, Generali.
• Multinational companies– Companies or corporate groups operating directly or through subsidiaries on a small territorial
scale across one region of Europe.– Where? Baltic states, SEE.– Who? E.g. PZU, Euroins, ASTRA, VIG
• Domestic companies– Companies or corporate groups only operating in one single country.– Where? Respective country.– Who? E.g. for Romania Carpatica Asig, ABC Asig, Exim Asig
The Market Participants
Page 4
Aims of the market participants
The different market participants may pursue the following aims:
• International companies– To provide support for clients on global basis.– To grow premium income and market share globally.– To diversify the risks and exposures assumed.– To repatriate profits (but profits are not essential).
• Multinational companies– To provide support for local clients on a larger regional basis.– To grow premium where home market share is reaching optimum level.– To diversify the risks and exposures assumed.– To create the right environment for a possible sale.
• Domestic companies– To provide support for local clients on a domestic basis.– To grow premium and domestic market share.– To create the right environment for a possible sale.
The Market Participants
Page 5
Top 10 Non-Life Premium Income breakdown
Non-Life Market Composition in CEE
Poland Romania Russia Hungary Bulgaria Czech Republic
0%
20%
40%
60%
80%
100%
Domestic Companies International / Multinational groups
Poland Romania Russia Hungary Bulgaria Czech Republic
01,000,000,0002,000,000,0003,000,000,0004,000,000,0005,000,000,0006,000,000,0007,000,000,0008,000,000,0009,000,000,000
10,000,000,000
Premium Income of the Top 10
in 2010(All Values in USD)
Source:AXCO
The following breakdown of the Top 10 Non-Life Premium Income in 6 randomly chosen countries of CEE may be representative for the situation in CEE.
Page 6
Top 10 no. of companies breakdown
Poland Romania Russia Hungary Bulgaria Czech Republic
0%
20%
40%
60%
80%
100%
Domestic Companies International / Multinational groups
Poland Romania Russia Hungary Bulgaria Czech Republic
0123456789
10
No. of companies within the Top 10
in 2010
Source: AXCO
The following breakdown of the no. of companies (based on the Top 10 Non-Life Premium Income) in 6 randomly chosen countries of CEE may be representative for the situation in CEE.
Non-Life Market Composition in CEE
Page 7
Top 10 origin of the non-domestic companies breakdown
Poland Romania Russia Hungary Bulgaria Czech Republic
0
1
2
3
4
5
6
7
8
9
10
AustriaAustria
Austria Austria
Austria
Germany Germany
Germany
GermanyGermany
Germany
Italy
Italy
Italy
Italy
Italy
Bulgaria
France
France
France
Belgium Belgium
Belgium
Netherlands
US
Originof the international /
multinational companieswithin the Top 10
in 2010
The following breakdown of the non-domestic companies (based on the Top 10 Non-Life Premium Income) in 6 randomly chosen countries of CEE may be representative for the situation in CEE.
Non-Life Market Composition in CEE
Page 8
Origin of the active multinational /international groups
Austria2
Belgium1
Bulgaria1
Germany3
France2
Italy1
Nether-lands
1
US1
Originof the international / multinational groups
in 2010
The following breakdown of the origin of groups (based on the Non-Life Premium Income of 6 randomly chosen countries of CEE) may be representative for the situation in CEE.
Non-Life Market Composition in CEE
Page 9
Current reinsurance issue
Current Reinsurance issue
Are Reinsurers heading for the exit in Romania and Eastern Europe?
• Romania
• Eastern Europe
• “Moral Damages” (Pain and Suffering)
Page 10
The Future
Outlook
• Romanian Courts
• Compulsory Catastrophe policies (“PAD” policies)
• Solvency II
Distinctive. Choice.
JLT Re
Thank you very much.
