the insurance and reinsurance markets of the Caucasus in the context of today’s economic realities Giles Ward, Regional President, Eurasia and Africa, ACE Group July 2015

ACE’s global reach Operations in 54 countries Global network spanning 200 countries and territories in total Eurasia and Africa Employees 270 Offices 11 Europe Employees 2,500 Offices 45 North America Employees 10,000 Offices 170 Asia Employees 47,000 Offices 130 Latin America Employees 3,600 Offices 110

Serving Eurasia and Africa from 10 strategic locations: Geographic sources of premium (2014) 12/11/2018

Insurance penetration rates (%) Russia Turkey Source: Xprimm (life and non-life) 2014; AXCO data

Property Property / Catastrophe Energy Construction Terrorism & political risks

Casualty General liability Employer’s liability Directors and Officers liability Professional indemnity

Three key goals Improve risk awareness Move perception of risk management at Board level from cost burden to financial and strategic enabler Better risk management processes/ safety standards Deliver increased professionalism A risk-based approach to capital at company/ market level Self sufficiency: shift from ‘price takers’ to ‘price makers’ Focus on underwriting discipline Increased market competition (incl. from Asia and ME) Low interest rates in West fuelling capital flows and reducing income opportunity from fixed assets The long-term trend for catastrophe losses is upwards

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