Azerbaijan Life Insurance market: trends and perspectives Baku, Azerbaijan July 02, 2015

Life Insurance in Azerbaijan Market Share by GWP for the period 2011 - 2014

Life Insurance in Azerbaijan Insurance Market of Azerbaijan in Absolute Terms in mln AZN YEARS 2011 2012 2013 2014 Non-Life Insurance 190,5 305,7 336,9 324,2 Life Insurance 22,5 36,8 68,8 105,0 Total Insurance 213 342,5 405,7 429,2

Insurance market in Azerbaijan Market Share of life and none-life Insurance in Azerbaijan

Life Insurance in Azerbaijan Life Insurance GWP’s by types Years 2011 2012 2013 2014 Total Life Insurance 22 553 468 36 810 607 68 775 621 104 993 830 Voluntary life insurance 3 652 743 15 085 152 43 890 606 76 654 845 Compulsory life insurance 18 900 725 21 725 455 24 885 015 28 338 984 in AZN

Life Insurance in Azerbaijan Compulsory Life Insurance GWP’s in AZN

Life Insurance in Azerbaijan Life Insurance GWP’s

Life Insurance in Azerbaijan Life Insurance Claims Years 2011 2012 2013 2014 TOTAL LIFE INSURANCE 470 015 4 223 800 3 886 262 28 573 739 Voluntary life insurance 177 630 3 044 753 2 428 903 26 170 153 Compulsory life insurance 292 385 1 179 047 1 457 359 2 403 586 in AZN

Life Insurance in Azerbaijan Compulsory Life Insurance Claims in AZN

Life Insurance in Azerbaijan Life Insurance Claims

Trends of Life Insurance market Life Insurance market has been increased twice during the 2014 the growth of incomes of population the increasing interest of population to life insurance products the growth of endowment product controlling mechanisms from state organizations bank assurance services has been increased

Trends of Life Insurance market The endowment life insurance has an important increase profitability of the product (44%-55%) is triple higher than bank deposits interest rate (10-12%) has an advantage by tax low and by state social foundation rules none existing of commercial pension funds and lack of investment funds

Trends of Life Insurance market The bancassurance life insurance has an important increase PASHA Life Insurance is leading on bank assurance business (75% of market share) Banks are interested to allocate cash resources from Insurance companies like a bank deposits Recent banking reforms and some changes on credit creation rules made bank assurance business more demanded

Trends of Life Insurance market The bancassurance life insurance has an important increase New attractive life insurance products, f.e. “borrowers life insurance” Some chances to implement from world life insurance practice the bank assurance value of market share is 10% as a segment at the moment.

Factors that may contribute to the development of life insurance Development of new and more understandable voluntary insurance products Strengthening of marketing activities by insurance companies Strengthening of the population awareness and educating processes on insurance products

Factors that may contribute to the development of life insurance The launch of various projects promoting insurance in media and etc. The establishment of training centers for the insurance professionals preparation

Pasha Life Insurance About Company “PASHA Life Insurance” OJSC carries out its activity on the basis of the official registration at the Ministry of Taxes of the Republic of Azerbaijan and the license dated 14.02.2011 issued by the Ministry of Finance of the Republic of Azerbaijan.

GenRe Germany and SCOR France Pasha Life Insurance About Company PASHA Life Insurance has strong partnership mainly with the leading high-rated international reinsurance companies: GenRe Germany and SCOR France

Pasha Life Insurance Main financial figures for end of 2014 (in AZN) Total assets - 91,975,000 Share capital - 40,0250,000 Net profit - 5,326,000

Pasha Life Insurance "PASHA Life Insurance" is a member of: Azerbaijan Insurers Association (ASA), Azerbaijan Risk Professionals Association (ARPA), Azerbaijani-Turkish Business Association (ATIB), Confederation of Entrepreneurs of Azerbaijan (ASK) Azerbaijani-American Chamber of Commerce (AMCHAM). The company possesses "TÜV Thüringen" ISO 9001: 2008 international quality certificate.

Awards As a result of 2013 and 2014, "PASHA Life Insurance" company was awarded with award “The most profitable life insurance company of Azerbaijan” by Romania's prestigious "XPRIMM Insurance Report" international insurance magazine In 2015 “PASHA Life Insurance” has been honoured with the award “National Brand of Azerbaijan” by the prestigious British “Luxury Lifestyle” company

Public activity and social responsibility The company is deeply aware of its social responsibility, always takes into account the public interest and conducts activities of social importance. In 2014, "PASHA Life Insurance" has been honoured with the award "National Heritage" by the Ministry of Culture and Tourism of the Republic of Azerbaijan

Public activity and social responsibility One of the company's social responsibility projects is the training for students of different universities conducted since July, 2013 Since start of the project by now 1150 students participated in 56 training sessions held on mainly insurance related and other topics 

Thanks!!! We are looking forward to see you in the Special Evening party tomorrow - 03 July, 2015 (Dinner & Insurers’ European Games) offered by PASHA Life Insurance” OJSC takes place at Baku Entertainment Center (Fazail Bayramov street, 1130/33). Dress code – casual/sport wear.