1. Azerbaijan Reinsurance Market Azerbaijan International Insurance Forum Fuad Kuliyev (AzRe) June 20, 2013

2. General Information Establishment: 28 May 1918 Independence: 18 October 1991 Official Language: Azerbaijanian Political system: Presidential Republic Area: 86.6 ths. sq. km. Population: 9,36 million Capital: Baku Autonomous Republic: Nakhchivan Currency: Manat 2AIIF 2013

3. Macroeconomic indicators 20112012 Population9,24 million9,36 million GDP63.4 bln USD69.2 bln USD GDP per capita7.0 thsd USD7.5 thsd USD Inflation7.9 %1.1% Poverty level7.6 %6.0 % Average monthly salary460 USD502 USD Foreign Investments8.7 bln USD10.3 bln USD Domestic Investments13.0 bln USD15.4 bln USD Strategic Currency reserves40 bln USD46 bln USD 3AIIF 2013

4. Country ratings Long term credit rating: BBB- with stable outlook Long term credit rating: Baa3 with stable outlook 4AIIF 2013

5. Insurance Market (USD) 20112012 Total Assets581.9 mln765.4 mln Paid-up capital321.8 mln374.6 mln Gross Written Premium270.8 mln436.3 mln Paid Claims78.3 mln119.6 mln GWP/GDP %0,43%0,63% GWP per capita29.947.3 5AIIF 2013

6. Gross / Net Outgoing Reinsurance Premium Gross Reinsurance Premium AZN 88,17 mln Net Reinsurance Premium AZN 81.40 mln 6AIIF 2013

7. Paid Claims & Loss Ratio Paid Claims – AZN 14.49 mln Loss Ratio 7AIIF 2013

8. Life and Non-life Gross written premiumLoss Ratio 8AIIF 2013

9. Proportional & non-proportional Gross reinsurance premiumNet reinsurance premium 9AIIF 2013

10. Reinsurance structure (by types) 10AIIF 2013

11. Paid Claims 11AIIF 2013

12. Loss Ratio (Claims/NRP) 12AIIF 2013

13. Reinsurance structure (by countries) 13AIIF 2013

14. Reinsurance structure (overseas reinsurers) 14AIIF 2013

15. Reinsurance Structure (by S&P rating) 15AIIF 2013

16. Reinsurance Structure – overseas reinsurers only (by S&P rating) 16AIIF 2013

17. Initiative for market Cat cover Country risk profile 17AIIF 2013

18. Initiative for market Cat cover Background of demand 18AIIF 2013 Main risks Earthquake Floods Landslides Hailstorm Loss history -Zaqatala earthquake, April 2012 – AZN 420 mln economic loss -Kur-Araz floods, April-May 2010 – AZN 20 mln economic loss -Baku earthquake, 2001 Covered natural perils by compulsory law Earthquake, volcanic eruption, storm, hailstorm, hurricane, flood, inundation, heavy rain, landslide

19. THANK YOU fkuliyev@azre.az