0 THE INSURANCE SECTOR A DIRECT INVESTOR AND FACILITATOR FOR INVESTMENTS Mr. Christoph WolfFebruary 2008

1 SerbiaTurkeyCroatiaBulgariaRomania % Market shares of foreign Insurance Companies, 2006* In percent Average *Foreign Insurer as a „dominating“ owner; Shares at 100%, if defined as “foreign Insurer” Source:Market statistics of FSA (Financial Supervisory Authorities) and Insurance associations, own analysis

2 Bulgaria foreign domestic Croatia Foreign Insurance companies %55%*61%78% Shares of Foreign insurance companies in equity and number of companies In Percent *In 2006 there were 1 domestic insurance company and 2 foreign insurance companies less Source:Market statistics of FSA (Financial Supervisory Authorities) and Insurance associations, own analysis

3 exemplary * Expansion of foreign insurance companies in South-Eastern Europe In Percent for all insurance companies * South-Eastern-Europe Insurers own 3 of them there Source:Market statistics of FSA (Financial Supervisory Authorities) and Insurance associations, own analysis

4 Austria Croatia Bulgaria Serbia Romania Turkey Expected development Non-Life Life Insurance Penetration on South-Eastern Europe markets In Percent of gross domestic product (GDP) Source:Market statistics of FSA (Financial Supervisory Authorities) and Insurance associations, own analysis