Reinsurance in Russia | January – June 2017

MOSCOW | 2017

Data Source and Report Purposes

2

"We are pleased to present our regular overview of the reinsurance market,

which was made by RNRC on the basis of the public statistics of the Central

Bank.

Our aim is to provide the market and all interested parties with a fair view of

the changes on the Russian reinsurance market free from speculation and

arbitrary conclusions.

The Report is based solely on the historical data provided by insurers in their

quarterly reports to the Central Bank.

We are always ready to answer any questions concerning these reports which

have become our regular practice."

Nikolay Kuznetsov,Chief Actuary, RNRC

Nickolay.Kuznetsov@rnrc.ru

Inward reinsurance

3

o Premium growth dynamicso Market structureo Leaderso Geographyo Market concentrationo Loss ratio

Outward reinsurance

o Dynamicso Structureo Geographyo Leaderso RNRC's share in insurers' portfolios

TABLE OF CONTENTS

Paid claims

Inward reinsurance market dynamics

4

15 511 14 748 9 565 11 015 11 791

6 987 9 424 10 692 9 696 6 456

HY1 2013 HY1 2014 HY1 2015 HY1 2016 HY1 2017

premiums ceded by the international market

premiums ceded by Russian insurers

20 71422 501

24 175

20 260

18 250

The downward trend of the inward insurance market hascontinued in the first six months of 2017, although in thesecond quarter of 2017, the decline slowed down almosttwofold compared to the first quarter. The market decreasedby 15.7% in the first quarter and only by 7% in the secondquarter. At the end of the six months, the market declinetotaled 11.9%. If not for RNRC, the decrease would havereached 25% in the first six months.

At the end of the first six months, the drop in the amount ofinternational risk premiums of Russian companies remainedat the level of the first quarter (33%). As a result, the shareof international business has decreased from 46% to 35% ofthe total amount of premiums compared to the first sixmonths of 2016. The performance of all major players hasdecreased, in part due to the strengthening of the ruble in2017. This has less impact on the domestic market, thoughbeing important for players of international origin, such asSCOR, Chubb, and AIG.

The Russian inward reinsurance market has grown by 7%. Ifnot for RNRC, it would have seen a 20% drop in premiums, assome companies (such as UNITY RE, TRANSSIB RE, ZHASO,TRANSNEFT, and SELEKTA (who was back on the market inthe second quarter of 2017)) have left the market and anumber of Russian players (such as ROSGOSSTRAKH,CAPITAL INSURANCE, and SCOR) have become less active.etc.

Dynamics of the inward reinsurance market(million RUB)

4%9%

2%

4%

5%

2%

5%

60%

3%7%

Financial risks

Agricultural

Liability, incl. hazardous

industrial facilitiesCompulsory insurance of

hazardous industrial facilitiesCompulsory carrier liability

insuranceVoluntary medical insurance and

accident insuranceMarine

Hull and machinery

Corporate property

Personal property

Inward reinsurance market structure

5

Inward reinsurance market structure 1st half of 2016

Inward reinsurance market structure1st half of 2017

Changes in the structure of premiums followed the same trends as those seen in the first quarter: an increasing share ofcompulsory liability insurance (hazardous industrial facilities and carriers liability) and a decreasing share of corporateproperty insurance. Changes in compulsory insurance are technical and are due to changes in the accounting regulations.Changes that are less significant in absolute terms but worth mentioning include a more than twofold drop in the share ofland transport hull insurance in the structure of premiums (mainly contributed by a decrease in premiums of SKOR P.O. fromthe Russian market) and a considerable (75%) increase in the share of personal property insurance in the structure ofpremiums due to an increased amount of premiums ceded to SOGAZ.

5%

9%

3%

10%

5%

2%

2%

51%

1%

3% 8%

Leaders of the inward reinsurance market

6

67 846

40 253

155 390

178 167

733 774

200 946

392 450

230 470

265 045

919 313

552 598

852 616

778 949

925 036

1 611 695

1 563 547

4 864 823

3 687 664

56 850

49 895

133 397

176 511

448 721

256 303

444 624

332 454

242 675

491 522

458 739

873 755

925 412

532 295

1 143 723

841 034

3 023 685

3 277 442

3 611 884

UNITED INSURANCE COMPANY

LEKSGARANT

TIT

ENERGOGARANT

ROSGOSSTRAKH

SOGLASIE

RESO

ALLIANZ

VSK

CAPITAL

RUSSIAN RC

VTB

ALFASTRAKHOVANIE

AIG

CHUBB

SCOR

RNRC

SOGAZ

INGOSSTRAKH

HY1 2017 HY1 2016

16.6%

RNRC's sharein the total

amountof premiums

At the end of the 1st half of2017, the market leaders,SOGAZ and INGOSSTRAKH,swapped places with eachother due to a decrease inwritten premiums of SOGAZ.

RNRC has increased its marketshare and remained thirdamong the leaders.

Some of the market leaders(ALFASTRAKHOVANIE, VTBINSURANCE, RESO-GARANTIA)have increased their writtenpremiums.

Premiums written bysubsidiaries of internationalcompanies decreased largelydue to changes in the rubleexchange rate.

(thousand RUB)

Leaders of the inward reinsurance market in the Russian Federation

7

58 535

37 899

44 978

120 727

67 120

169 952

139 027

161 107

235 332

222 942

354 878

643 222

389 127

1 275 017

553 552

702 306

2 307 864

1 545 857

-

53 801

61 934

83 912

103 549

116 483

171 003

175 928

218 365

219 674

316 956

341 054

414 490

433 447

599 861

752 213

789 915

1 237 639

2 104 367

2 989 744

UNITED INSURANCE COMPANY

CHULPAN

MAKS

TIT

AIG

ENERGOGARANT

CAPITAL INSURANCE

SOGLASIE

VSK

ALLIANZ

RUSSIAN RC

ROSGOSSTRAKH

RESO-GARANTIA

SCOR

ALFASTRAKHOVANIE

VTB INSURANCE

SOGAZ

INGOSSTRAKH

RNRC

HY1 2017 HY1 2016

(thousand RUB)

25.4%

RNRC's share in the total amount of

premiums written the Russian Federation

RNRC accounts for 25% of thedomestic inward reinsurancemarket.

If not for written premiums ofRNRC, the inward reinsurancemarket would have seen a 20%drop instead of growing by 7%.

INGOSSTRAKH posted a 36%increase and SOGAZ saw a 46%decrease in inward reinsurancepremiums. The latter was due to amore than a twofold decrease inpremiums under corporateproperty insurance contracts.

The growth of premiums of majorinsurers mainly relates to thedomestic market.SCOR saw a drop in premiums dueto a decrease in premiums underhull and machinery insurancecontracts.

Leaders of the market of inward reinsurance from abroad

83 323

7 528

29 713

31 676

34 663

-

90 552

39 839

40 253

150 310

197 720

-

225 397

288 530

780 286

857 916

1 611 695

2 141 807

2 556 959

11 177

15 498

23 001

25 299

29 848

33 941

34 231

37 938

49 895

83 840

117 685

124 134

173 199

241 173

315 594

415 812

1 116 811

1 507 517

2 039 803

RESO

ALLIANZ

VSK

ARSENAL

TIT

RNRC

ROSGOSSTRAKH

SOGLASIE

LEKSGARANT

VTB INSURANCE

RUSSIAN RC

SELEKTA

ALFASTRAKHOVANIE

SCOR

CAPITAL INSURANCE

AIG

CHUBB

INGOSSTRAKH

SOGAZ

HY1 2017 HY1 2016

0.5%

All notable players of the market ofinward reinsurance placed by foreigninsurers experienced a decrease intheir business. This was mainly due tothe strengthening of the ruble, leadingto a decrease in the Ruble equivalentamount of premiums.

CAPITAL INSURANCE has lost asignificant amount of inwardreinsurance business from Bulgaria.

SELEKTA is back in the statisticspublished by the Central Bank ofRussia for the first six months of2017.

RNRC has not acquired any significantvolumes of foreign business. This isdue to the fact that the Companystarted to operate on internationalmarkets in the second quarter of2017 after international ratingassignment by Fitch (BBB-).

(thousand RUB)

0.5%

RNRC's share in the amount of premiums

writtenabroad

Countries ceding premiums to Russia

914 478

59 053

621 538

111 350

204 386

218 195

21 591

107 783

243 009

258 460

336 467

85 961

247 894

23 670

228 419

1 357 462

517 710

857 036

429 622

1 736 447

73 991

80 843

88 435

106 067

132 797

146 294

167 886

168 337

191 234

203 304

224 107

269 512

278 087

279 252

312 891

319 924

397 160

416 162

426 995

1 137 298

CZECH REPUBLIC

SUDAN

BULGARIA

GEORGIA

REPUBLIC OF KOREA

SWEDEN

VIETNAM

MOLDOVA

SERBIA

FRANCE

UKRAINE

BELARUS

INDIA

SLOVENIA

CHINA

GERMANY

KAZAKHSTAN

FINLAND

UAE

UK

HY1 2017 HY1 2016

Top 20 leading countries in terms of the amount of premiums ceded to Russian reinsurers

The amount of premiums ceded toRussian reinsurers has decreased forthe majority of countries. The mostnotable decrease is recorded forGermany. This is due to a dramaticreduction of business placed fromthis country with SOGAZ.

At the same time, SOGAZ was able tomake up for the lost business onaccount of Belarus, Vietnam andChina, resulting in growth for thesecountries.

For the UK, the drop was due to areduction in business placed withCHUBB.

For Finland, a twofold decrease inpremiums was due to AIG.

For Bulgaria, the decline was due toCAPITAL INSURANCE. The growth ofpremiums from Slovenia is alsoassociated with this company.

(thousand RUB)

Inward reinsurance market concentration

10

20%23% 23%

37%39% 41%

45%47% 50% 51%

70%

77%81% 83%

2012 2013 2014 2015 2016 HY1 2016 HY1 2017

Top 2 Top 10

Market shares of Top 2 and Top 10 leaders of the inward reinsurance market

The trend towards the concentration of the inward reinsurance market continues. Following a decrease in premiums from international markets, the percentage of Russian companies among the top 10 players is growing.

Outward reinsurance market dynamics

11

In the second quarter of 2017, the amount of ceded premiums showed betterdynamics in absolute terms than in the similar period of 2015 and 2016. As aresult, the market decline has slowed down.

While at the end of the first quarter of 2017 the market decrease reached20%, the aggregate drop for the six months was 10%.

The fall was due to a 14% decrease in premiums ceded abroad in the first sixmonths (in the first quarter of 2017, the decrease in premiums ceded abroadreached 25%).

The trend toward increasing treaty capacity driven by SOGAZ andINGOSSTRAKH was supported by another player, ALFASTRAKHOVANIE thatincreased the limit under its existing treaty. The trend towards an increasingnumber of co-insurance contracts continues too, which also contributes toreduction of the total amount of ceded premiums.

The strengthening of the ruble and changes in the premiums accountingprocedure also continue to affect the year-to-year comparability of figures indifferently directed patterns. The strengthening of the ruble reduces theamount of premiums denominated in foreign currency and the new accountingregulations increase the amount of premiums, requiring that premiums bereported before the formally executed documents are received.

CAPITAL INSURANCE reduced the amount of ceded premiums due torescheduling of signing of a few major contracts from the first quarter of 2017to the fourth quarter of 2016. A positive effect on the amount of cededpremiums was made by changes in the structure of land transport hull andmachinery reinsurance, mainly due to SOGLASIE. A reduced amount of"schemes" also makes a contribution, but this impact cannot be reliablyassessed.

17 680 16 66311 788 11 750 13 189

42 499 51 338 49 249 55 470 47 605

HY1 2013 HY1 2014 HY1 2015 HY1 2016 HY1 2017

premiums ceded abroad

60,130

68,003

61,038

67,221

60,795

Dynamics of the outward reinsurance market (million RUB)

Dynamics of the outward reinsurance ratio

12

15,4%

16,3%

15,6%

16,5%

14,7%

HY1 2013 HY1 2014 HY1 2015 HY1 2016 HY1 2017

Ratio of ceded premiums to direct and assumed reinsurance premiums, excluding life and compulsory motor third party liability insurance

During the 1st half of 2017, ceded premiums not only showed a decline in absolute terms, but also structural changes. The ratio of ceded premiums to total direct and assumed reinsurance premiums dropped notably (excluding life and compulsory motor third party liability business, as such risks either may not be ceded or are insignificant).

In the second quarter of 2017, the ratio increased compared to the first quarter when it was 13%. The result for the 1st half of 2017 (14.7%) is much closer to the average values of the previous years.

Risks with smaller shares

13

10,5%

13,8%

4,3%

21,0%

7,3%

45,6%

5,4%

29,4%

76,2%

48,1%

44,6%

11,6%

6,8%

0,9%

11,0%

24,9%

1,7%

21,4%

8,7%

36,2%

7,3%

30,4%

60,9%

46,8%

42,4%

12,4%

5,4%

0,8%

Railways

Agricultural

Individual property

Marine

Financial risk

Aviation hull insurance

Hull and machinery

Cargo

Business risk

Corporate property

Property Total

Liability Total

Personal Total

Life Total

HY1 2017

HY1 2016

Ratio of ceded premiumsto direct and assumed reinsurance premiums

At the end of the first six months of 2017, changes in the sharesof ceded risks in certain segments compared to the previousyear were less significant than a quarter ago.

As for property business, a significant gap registered in the firstquarter of 2017 was almost made up for. Corporate propertybusiness was strongly impacted by the transfer of premiums ofCAPITAL INSURANCE and almost a twofold decrease in theceded premiums of ALFASTRAKHOVANIE and VTB. On the otherhand, the market leader, SOGAZ, has notably increased theamount of premiums ceded in this business.

As for liability insurance, a percentage increase in premiums dueto the changes in accounting for compulsory types was smalleron the one hand. On the other hand, decreased premiums cededunder developer liability contracts by RESPECT also showed asmaller percentage impact than in the first quarter of 2017.

A decrease in the share of ceded business risks was almosttotally due to the leader of the segment, SOGAZ, that was ableto increase its direct premiums while keeping the reinsurancepremiums unchanged.

The share of business risk reinsurance is notably higher thanthat of corporate property business, mainly on account ofbusiness interruption insurance. This product is more offered tolarge corporate clients, resulting in a higher share of premiumsceded.

8%

1%

11%

1%

3%

8%

1%

9%

47%

1%

1%

4%4% 2%

Financial risks

Agricultural

Liability, incl. hazardous industrial

facilitiesCompulsory insurance of hazardous

industrial facilitiesCompulsory carrier liability

insuranceAccident and voluntary medical

insuranceMarine

Hull and machinery

Corporate property

Personal property

Outward reinsurance market structure

14

Outward reinsurance market structure HY1 2016

Outward reinsurance market structure HY1 2017

In the 1st half of 2017, the share of land transport hull and machinery business increased compared to the similar period of the previous year. SOGLASIE increased its ceded premiums by four times or RUB 3 billion. Based on the changes in the premium dynamics, the structure of reinsurance coverage has changed as well. On the contrary, ROSGOSSTRAKHdecreased its premiums by RUB 1.2 billion. SCOR saw a decrease in retrocession, and a number of players left the market altogether.

7%1%

11%

1%

1%

8%

1%

7%52%

1%

4%4% 1%

Countries where premiums go to from Russia

15

694 923

436 092

497 657

456 845

639 762

810 599

605 181

617 405

468 627

1 081 485

59 063

1 189 184

1 234 711

1 347 632

1 991 247

3 913 128

4 542 772

4 554 955

8 066 802

13 997 647

360 182

374 018

383 473

391 097

416 450

487 633

636 130

777 697

801 913

916 287

935 304

1 012 270

1 037 384

1 040 229

1 588 082

3 679 086

3 697 520

4 186 312

9 100 034

11 966 505

SPAIN

JORDAN

NETHERLANDS

AUSTRIA

REPUBLIC OF KOREA

FINLAND

BELGIUM

BARBADOS

LUXEMBOURG

IRELAND

CAYMAN ISLANDS

CHINA

INDIA

BAHRAIN

BERMUDAS

FRANCE

U.S.

SWITZERLAND

GERMANY

UK

HY1 2017 HY1 2016

Top 20 leading countries in terms of the amount of premiums ceded by Russian insurers

A wide-scale decrease in ceded premiums was due tochanges in exchange rates.

The transfer of premiums of CAPITAL INSURANCE has moststrongly hit the UK (about RUB 2 billion) and Kuwait (aboutRUB 880 million). As a result, Kuwait dropped out of theTop 20.

An increase in premiums going to Germany was due to thegrowth of ceded premiums in hull and machinery businessof SOGLASIE.

The Cayman Islands appeared in the Top 20 list due toRESPECT's decision to have its risks reinsured in thiscountry.

One of the few countries that showed growth isLuxembourg. This was thanks to the increased amount ofpremiums from VSK, as well as to contracting with SOGAZand BRITISH INSURANCE HOUSE.

(thousand RUB)

Leaders of the outward reinsurance market

16

906033,0

481786,0

1108128,0

6352964,0

1627754,0

882547,0

4325493,0

576225,0

1118253,0

1673771,0

1723339,0

1556634,0

1301115,0

1692031,0

2626913,0

4577298,0

1910239,0

6109396,0

15491481,0

566525,0

582803,0

715881,0

806667,0

824127,0

839304,0

1108762,0

1113116,0

1134791,0

1154589,0

1402764,0

1559293,0

1872932,0

1941108,0

2201332,0

3968329,0

5111916,0

5838105,0

18327735,0

SCOR

ALLIANZ LIFE

ENERGOGARANT

CAPITAL INSURANCE

CFIC

ZURICH

ROSGOSSTRAKH

VSK

RSKHB

CHUBB

RESPECT

AIG

ALLIANZ

RESO-GARANTIA

VTB INSURANCE

ALFASTRAKHOVANIE

SOGLASIE

INGOSSTRAKH

SOGAZ

4.3%

The majority of companies reducedthe amounts of ceded premiums.The most notable decrease wasreported by CAPITAL INSURANCE(Lukoil's property) andROSGOSSTRAKH (hull andmachinery, corporate and personalproperty businesses).

A considerable decrease wasreported by CRIMEAN FIRSTINSURANCE COMPANY (CFIC).

The companies with a significantincrease in the amount of cededpremiums include SOGAZ andSOGLASIE.

As mentioned before, SOGAZ hassignificantly increased cededpremiums in the corporate propertybusiness and SOGLASIE increasedceded premiums in the hull andmachinery business.

(thousand RUB)

Share of treaty reinsurance

17

100%

100%

95%

44%

0%

77%

52%

78%

73%

73%

31%

94%

45%

18%

18%

32%

90%

58%

19%

53%

100%

100%

96%

38%

0%

78%

65%

88%

82%

77%

100%

100%

74%

17%

34%

30%

95%

64%

13%

49%

SCOR

ALLIANZ LIFE

ENERGOGARANT

CAPITAL INSURANCE

CRIMEAN FIRST…

ZURICH

ROSGOSSTRAKH

VSK

RSKHB

CHUBB

RESPECT

AIG

ALLIANZ LIFE

RESO

VTB INSURANCE

ALFASTRAKHOVANIE

SOGLASIE

INGOSSTRAKH

SOGAZ

TOTAL

HY1

2017

4.3%

The structure of market in terms ofthe prevailing form of reinsurancelooks quite stable, although theshare of premiums under treatieswent down below 50 percent in2017. This was mainly due to adecrease in the respective share ofthe market leader, SOGAZ, and adecline in the total weight ofsubsidiaries of internationalinsurers and reinsurers.

As can be seen, the share oftreaties of subsidiaries of foreigninsurers (usually for the benefit ofthe parent) is, as a rule, equal to100 percent.

RNRC's share in premiums ceded by insurance companies (1)

18

RNRC accounts for 10% or more RNRC accounts for 5 to 10%

VTB INSURANCE 11.3%VSK 10.9%INDEPENDENT INSURANCE GROUP 25.9%NASKO TATARSTAN 11.8%MEGARUSS-D 32.6%TIT 10.5%NIK 10.4%ROSGOSSTRAKH-LIFE 12.6%AMT INSURANCE 10.4%CRIMEA INSURANCE ALLIANCE 11.6%URALSIB INSURANCE 20.2%ERV TRAVEL INSURANCE 19.2%PARITET-SK 25.7%MEDEKSPRESS 23.7%POLIS-GARANT 10.6%SMP-INSURANCE 245.3%SELEKTA 15.1%EKIP 10.7%ASKO-CENTER 27.1%CAPITAL REINSURANCE 208.3%ARMEYETS 30.8%INGVAR 16.1%ADVANT-INSURANCE 16.7%INTOUCH INSURANCE 19.6%YUGORIA 10.9%CIVIL INSURANCE HOUSE 11.1%URALSIB-LIFE 20.5%INVESTSTRAKH 13.4%

SOGAZ 8.80%

ALFASTRAKHOVANIE 5.3%

ROSGOSSTRAKH 6.5%

CRIMEAN FIRST INSURANCE COMPANY 6.1%

BRITISH INSURANCE HOUSE 6.8%

ERGO 5.5%

PROMINSTRAKH 8.6%

ARSENAL 9.7%

GELIOS 7.9%

URALSIB 5.7%

NADEZHDA 9.1%

VERNA 9.3%

ROSINKOR RESERV 6.6%

AK BARS INSURANCE 6.2%

GUTA-INSURANCE 6.2%

UNITED INSURANCE COMPANY 6.8%

ASTRO-VOLGA 7.6%

D2 INSURANCE 6.0%

TINKOFF INSURANCE 8.8%

TYUMEN-POLIS 7.5%

BOROVITSKOE INSURANCE COMPANY 9.0%

ASKOR 7.2%

RNRC's share in premiums ceded by insurance companies(2)

19

RNRC accounts for 1 to 5 % RNRC accounts for 0 to 1 %

INGOSSTRAKH 2.1%

RESO-GARANTIA 4.1%RSKHB-INSURANCE 2.6%

ZURICH RELIABLE INSURANCE 2.2%CAPITAL INSURANCE 3.3%

RENAISSANCE INSURANCE GROUP 2.1%

SURGUTNEFTEGAZ 4.6%MAKS 1.7%

STERKH 2.4%RUSSIAN REINSURANCE COMPANY 3.4%SBERBANK LIFE INSURANCE 4.5%

KHOSKA 2.8%

LIBERTY INSURANCE 1.6%ADONIS 4.4%

BASK 2.1%SPASSKIYE VOROTA 2.9%

TRANSNATIONAL INSURANCE COMPANY 2.3%

DALAKFES 3.3%SOCIETE GENERALE INSURANCE 1.7%

LEKSGARANT 3.7%DALZHASO 4.7%

GEOPOLIS 4.3%

ANGARA 4.8%

YEKATERINBURG INSURANCE COMPANY 1.5%SOGAZ-LIFE INSURANCE COMPANY 4.6%

MSK STRAZH 4.9%PLATO 2.1%

INERTEK 2.8%

ORBITA 1.7%SERVISREZERV 2.0%

TALISMAN 4.8%

SOGLASIE-VITA 4.8%

USPEKH INSURANCE COMPANY 4.6%

POVOLZHYE INSURANCE ALLIANCE 4.7%

SOGLASIE 0.4%

ALYANS 0.7%

CHABB INSURANCE COMPANY 0.8%

ENERGOGARANT 0.5%

EMERGENCY INSURANCE COMPANY 0.1%

YUZHURAL-ASKO 0.1%

PARI 0.3%

ROSMED 0.4%

CHULPAN 1.0%

SBERBANK INSURANCE 0.5%

INGOSSTRAKH-LIFE 0.1%

OPORA 0.1%

POMOSCH INSURANCE COMPANY 0.2%

ZETTA INSURANCE 0.4%

ERGO LIFE 0.1%

KRK-INSURANCE 0.5%

TWENTY FIRST CENTURY 0.1%

YAKOR 0.8%

CAPITAL-POLIS 0.8%

INSURANCE BUSINESS GROUP 0.7%

GRANTA 0.3%

ASKO 1.0%

REGIONGARANT 0.3%

ALFASTRAKHOVANIE-LIFE 0.1%

KOMESTRA-TOM 0.8%

DIAMANT 0.3%

VOSTSIBZHASO 0.5%

4.9 %

RNRC's share in thetotal amount of ceded

premiums

45 companies – 0%

Dynamics of paid claims

20

4 429 5 761 6 347 3 616 4 532

10 143 7 769 12 473 25 035 31 365

HY1 2013 HY1 2014 HY1 2015 HY1 2016 HY1 2017

within Russia from abroad

35 897

Dynamics of paid claims (million RUB)

The last two years were very unsuccessful for reinsurers. An unusually high value of the reinsurers' share in paid claims in the first half of 2016 was due to the loss claimed under Achinsk Refinery reinsurance (the loss of SOGAZ). However, this figure was exceeded in 2017 after the final settlement of loss in respect of Berezovskaya GRES (the loss of CHUBB), which amounted to about RUB 26 billion, of which about RUB 20 billion were paid in 2017.

28,651

18,820

13,53014,572

Loss ratio

21

97 498

114 790 120 158

138 448

120 633

132 116

67 221 60 795

29% 23% 21% 28% 52% 37% 43% 59%

2011 2012 2013 2014 2015 2016 HY1 2016

total premiums paid claims

Dynamics of premiums growth – inward reinsurance (million RUB)Loss ratio (%)

Despite the fact that the last years were very unsuccessful for reinsurers due to a number of large paid claims, the reinsurance market remains generally attractive, as confirmed by a significant positive balance between premiums and paid claims.

HY1 2017

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