Reinsurance solutions and demands: actual within FSU Dmitry GARMASH Deputy CEO, Ph.D., MBA Unity Re Ltd.

m EUR 2012 m EUR 2011 GR % 1Russia ,38 2Ukraine ,85 3Kazakhstan ,79 4Belarus ,06 5Azerbaijan ,46 6Georgia ,14 7Uzbekistan ,74 8Moldova655813,67 9Turkmenistan Armenia37348,82 11Tajikistan Kyrgyzstan161233,3 Source: XPRIMM insurance report, 1/2013 (8) Non-life primary markets

Market players non-life Number of insurance companies 1Russia418 2Ukraine355 3Kazakhstan35 4Belarus20 5Azerbaijan2828 6Georgia15 7Uzbekistan34 8Moldova24 9Turkmenistan1 10Armenia7 11Tajikistan16 12Kyrgyzstan14

Outward reinsurance non-life Primary non-life 2012, m EUR Outward R/I 2012 m EUR 1Russia Ukraine Kazakhstan Belarus36410? 5Azerbaijan29542? 6Georgia22618? 7Uzbekistan10935? 8Moldova6514? 9Turkmenistan-- 10Armenia37- 11Tajikistan26- 12Kyrgyzstan16-

Total primary non-life GWP 2012 = 22,7 bln EUR Average annual growth = 28,4% Total outward reinsurance 2012 = 3,5 bln EUR Just roughly 2% of world (re)insurance market Clients’ field = companies Rough split of risk/non-risk = 60/40 Indisputable core = Russian Federation Key LOBs = Motor + MTPL + Mandatory lines + Property 5 Position of the region

Specials of the region No binding to a world insurance cycle locally! Descending rates & dumping Unified group of foreign reinsurers, leaders Historically tight relationship with Russia Market consolidation  significant quality & expertise upgrade Disproportional development of fac and treaty CAT-exposure in place however with underdeveloped models Very differentiated state regulation Still huge difference between Gross & Net capacity

Demands vs solutions ;) Reinsurers - high-rated Price – very cheap Capacity – extensive Type – XOL Retention – the lowest Cover – PAR + very wide umbrella Best if with LEG/DE, CBI, ALOP included Quote in a couple of hours Claim settlement in a couple of days NCBs of >10-20% every year

Demands vs solutions Comfortable rating – above BBB/B+ Capacity for property fac – above 20m USD a.o.r. Fastest response & multiple quotations Alternative leading though prudent and confident Understanding regional marketing differences Rated capacity but with flexibility Diversified placement with the panel of >3-4 reinsurers  field for good brokers Targeted sales Attentive selection of reinsurers

Top-10 specialist reinsurers CompanyGWP 2012 ‘000 RUR GWP 2012 USD 1Unity Re ,6 2Moscow Re ,8 3Kapital Re ,5 4SCOR ,7 5Kama Re ,5 6Transsib Re ,4 7Russian Re ,1 8Rosles Re ,3 9Profile Re ,6 10Express Re ,7

Business from outside Russia

Thanks! Unity Re Ltd. T: F: W: