THE CURRENT STAGE OF REINSURANCE DEVELOPMENT WITHIN FORMER-USSR TERRITORIES

Dmitry GARMASHDeputy CEOUnity Re Ltd.

AIIF | 4-5 July | 2012 | Baku

m EUR 2011

m EUR 2010 Growth, %

1 Russia 29 592 25 253 17,18

2 Ukraine 1 263 1 149 9,85

3 Kazakhstan 876 691 26,88

4 Belarus 209 318 -34,36

5 Azerbaijan 187 146 28,19

6 Georgia* 111 121 -8,5

7 Uzbekistan 99 81 22,78

8 Moldova 58 53 9,7

9 Turkmenistan 46 40 15,19

10 Armenia 45 17 161,56

11 Tajikistan 20 16 25

12 Kyrgyzstan* 10 7 43,35

Source: XPRIMM insurance report, 1/2012(6) * 3Q 2011 results

Non-life insurance market development

Market players non-life

Number2011

1 Russia 495

2 Ukraine 381

3 Kazakhstan 38

4 Belarus 19

5 Azerbaijan 28

6 Georgia 15

7 Uzbekistan 38

8 Moldova 21

9 Turkmenistan 1

10 Armenia 9

11 Tajikistan 16

12 Kyrgyzstan 18

Outward reinsurance non-life

Insurance GWP Non-life, m EU2011

Outward R/I Non-life, m EUR2011

1 Russia 29 592 2 150

2 Ukraine 1 263 535

3 Kazakhstan 876 305

4 Belarus 209 7

5 Azerbaijan 187 33

6 Georgia 111 18

7 Uzbekistan 99 31

8 Moldova 58 13

9 Turkmenistan 46 -

10 Armenia 45 8

11 Tajikistan 20 -

12 Kyrgyzstan 10 -

• Total non-life insurance premium 2011 ~33 billion EUR

• Average annual growth ~25%

• Total outward reinsurance 2011 ~3,1 billion EUR

• Just 2% of world reinsurance non-life premium

• Number of insurance players ~1 000 companies

• Split for classic/scheme insurance ~60/40

• Absolute leading market – Russia

• Key market driving LOBs: motor + property + mandatory lines

5

Current market position

Market features

• No binding to international insurance cycle

• Descending pricing trend for 2000ths

• Stable and uniform group of international reinsurers

• Historically tight cooperation with Russian market

• Disproportional development of Fac and Treaty cover

• CAT-exposure but with underdeveloped modelling

• Differential legislative approach to market regulating

LOB Pure international business, Million USD

FSU interest, Million USD

Property 20 1 200

Energy 15 450

CAR/EAR 20 800

Marine Hull 60 150

Aviation hull 50 150

Domestic reinsurance capacity

Inward reinsurance GWP‘000 RUR2011

1 Ingosstrakh 3 301 962

2 Sogaz 2 712 672

3 Unity Re 1 281 649

4 Kapital insurance 1 229 881

5 Moscow Re 1 196 494

6 Allianz 958 706

7 VTB Insurance 914 943

8 Kapital Re 790 004

9 Soglasie 778 666

10 Transsib Re 739 997

FSU reinsurance leaders

S&P Fitch S&P Fitch AMBest Moody’s

Ingosstrakh BBB- Gefest B+

Transsib Re B

Unity Re BB B+

SCOR Perestrakhovanie

A Russian Insurance Center

B

Belarus Re B-

Sogaz BB+ / ruAA+ B++

ACE Insurance BBB- / AA+rus Eurasia BB B++

Alfastrakhovanie BB- Lemma B+

VTB Insurance BBB- Belgosstrakh B-

Moscow Re BB Transneft BBB-

Lexgarant B Amanat Insurance

B

Oil Insurance Co. B+ Russian Re B+

International ratings

125047, Russian Federation, Moscow Gasheka street, 12

Tel.: +7 495 956 6589Fax: +7 495 956 6598

E-mail: re@unityre.ru

www.unityre.com

Thank you!