1. JV Chartis Uzbekistan Insurance Company LLC
Member of AIG Group
- 1 - 1

2. Content
Company background
Company Financial Highlights
Uzbekistan Economy and Insurance Market reviews
Investment proposal
Future development prospects
Uzbekistan – Korea business relations
Contact details

3. Company background History Business area Office&facilities
Chartis Uzbekistan Insurance Company is an Uzbek legal entity formed as a Limited Liability Company in 1994.
It is a joint-venture between AIG Inc. and the National Bank for Foreign Economic Activity of the Republic of Uzbekistan
It is the first major international insurer to have participated in a direct insurance operation in Uzbekistan.
Management control of “Chartis Uzbekistan” rests with AIG.
Share capital – USD 2M (AIG – 51% and NBU - 49% ).
Business area
Chartis Uzbekistan Insurance Company is licensed to provide a broad range of personal and commercial property-liability insurance products and services to Uzbekistan enterprises, as well as to foreign companies with interests in Uzbekistan.  Principal product lines under the Company’s Insurance License include property, liability insurance, financial lines, energy, cargo insurance, accident & health (A&H), corporate travel insurance.
Office&facilities
Chartis Uzbekistan Insurance Company is located in the center of administration area of Tashkent and lease the premises of International Banking and Finance Center of NBU. Office area – 104 m2 , current staff number – 5 (GM, Assistant of GM, Financial Manager, U/W and Claims Manager, Driver). Office equipped with all necessary business facilities. Office doesn’t have any regional branch network, as well as agents network.

4. Company Financial Highlights
Key notes: The volume of GPW has been declining since 2005 due to outflow of Euro-Zone and American’s business from the country, which was the main target market of the company , as well as the conservative U/W policy of AIG has limited the business appetite of the company.

5. Uzbekistan Economy review
Source: World Development Indicators, World Bank

6. Uzbekistan Overview
Since the mid-2000s, Uzbekistan has enjoyed robust GDP growth, thanks to favorable trade terms for its key export commodities like copper, gold, natural gas, cotton, the government’s macro-economic management, and limited exposure to international financial markets that protected it from the economic downturn.
Overall growth for Uzbekistan is projected to continue at around 7 to 8 percent annually during , supported by net exports and a large capital investment program.
Uzbekistan, with the goal of becoming an industrialized, high middle-income country by around 2050, is continuing to transition to a more market-oriented economy to ensure equitable distribution of growth between regions and to maintain infrastructure and social services.
The country’s policy goals and priorities are:
to increase the efficiency of infrastructure, especially of energy, transport, and irrigation;
to enhance the competitiveness of specific industries, such as agro-processing, petrochemicals, and textiles;
to diversify the economy and thereby reduce its reliance on commodity exports;
and to improve access to and the quality and outcomes of education, health and other social services.
Source: World Bank
Additionally, in order to accumulate the necessary financial resources for the development and creation of the industries that are critical for the country development, the Fund of Reconstruction and Development of Uzbekistan (FRDU) with announced authorized capital in amount USD15 billion was established. By means of FRDU a new production capacities in the fuel and energy complex, automobile building, textile, construction materials, chemical, food, pharmaceutical, telecommunication and other industries were launched.

7. Uzbekistan Insurance Market review
Market participants
Regulatory body - Ministry of Finance
Insurance penetration – 0,3% of GDP (est.2012)
2012
Insurance companies, total 32
Non-life 30
Life 2
Insurance brokers
Assistance companies 5
Agents (legal entyties)
n/a
Agents (individual persons)
Adjusters and Surveyors 3
Actuary
Minimum capital requirements
Type of Insurance
Since July, 2012 (in EURO equivalent)
Since July, 2014 (in EURO equivalent)
General Insurance (non-life)
1,125K
1,500K
Life Insurance
2,000K
Compulsory Insurance
2,250K
3,000K
Reinsurance
5,000K
6,000K
The share of compulsory insurance (about 27% of GPW) in the insurance market increased with the introduction of compulsory insurance of civil liability of vehicle owners (OSGO) and obligatory insurance of civil liability of employers (OSGOR). OSGO was introduced in November 2008, OSGOR was introduced in 2009.

8. Investment proposal
Recently, AIG Inc. has been reviewed its global footprint as well as conducted a detailed assessment of its global operations and reached the conclusion to continue operating in some CIS countries (Azerbaijan, Georgia and Uzbekistan) through a different model (e.g. provide services via local friendly fronting company) and almost after 16 years of operation in Uzbekistan decided to sell its share in the Joint Venture to the interested parties.
At the same time, the Government of Uzbekistan with the purpose of furthering and strengthening financial and investment cooperation between Uzbekistan and Republic of Korea is interested to invite the investors from among Korean financial institutions (banks, insurance and reinsurance companies, investment funds) to take part in setting a joint venture on insurance market that might be mutually beneficial both for Korean businesses operating here and for further development of local insurance market also.
 Taking into account above the following investment proposal is suggested :
Sale of 51% share of AIG in JV Chartis Uzbekistan Insurance Company LLC at Option Price*
Please note that this offer , by the recommendation of the Government , is exclusively given to Korean investors firstly and it will not be distributed to other investors until the decision will be made by Korean investors.
* Option Price will be based on an independent appraisal of the net asset of the JV as of the date of determining actual value of the share.

9. Future development prospects
Future benefits for investors:
Favorable investment conditions and privileges supported by the Government
Tax exemptions for insurance business (Corporate Income Tax is free till 2017)
Steady growing economy and insurance market
Strong and sound local partner as National Bank of Uzbekistan
Already existing business facilities and insurance portfolio with loyal clients, supported by highly strong reputation of the company on the market
Highly competent and experienced local staff and principle management able to manage and grow the business
Strong Government support of the company that resulted in the priority given to the company to offer its services in large investment projects.
Cooperation possibilities with other local Uzbekistan insurance companies (e.g. Uzbekinvest National Export-Import Insurance Company), as well as further access to the global network of the Korean companies, to structure various co-insurance and reinsurance arrangements, giving the company the capability to handle large, complex risks.

10. Uzbekistan – Korean business relations
Republic of Korea is one of the largest investors in Uzbekistan. Based on the official statistics, the total volume of Korean investments in the Uzbek economy has exceeded $2 billion. Moreover, the Economic Development and Cooperation Fund (EDCF) issued preferential loans worth $117 million through the Korean Eximbank.
Over 350 enterprises with participation of the South Korean capital operate in Uzbekistan in the sectors of light industry, chemical industry, food industry, commerce, engineering and metalworking, housing and utilities, healthcare, tourism and services.
In addition, more than 90 representatives of South Korean companies accredited in Uzbekistan to act in the field of export-import operations, transportation services, textile manufacturing and servicing of electronics.

11. Contact details
If you are interested in this business opportunity we would be glad to discuss it further in detail.
Thank you very much for your attention and looking forward for future cooperation.
Our Contacts:
Chartis Uzbekistan Insurance Company LLC
1, Beshagach Street, , Tashkent, Republic of Uzbekistan
Contact person: Hasanjon Mamadjonov
Tel: (+99871)     Mob:  ( )
Fax: (+99871)