1. Distinctive. Choice. FIAR 2013 Reinsurance strategies for companies in CEE 21 st May 2013

2. Page 2 Overview 1 – The market participants 2 – Non-Life Market composition in CEE 3 – Current Reinsurance issue 4 – Outlook Overview

3. Page 3 Types of market participants In CEE there are three different kinds of market participants International companies –Companies or corporate groups operating directly or through subsidiaries on a large territorial scale in Europe. –Where? Across whole Europe. –Who? E.g. Allianz, Generali. Multinational companies –Companies or corporate groups operating directly or through subsidiaries on a small territorial scale across one region of Europe. –Where? Baltic states, SEE. –Who? E.g. PZU, Euroins, ASTRA, VIG Domestic companies –Companies or corporate groups only operating in one single country. –Where? Respective country. –Who? E.g. for Romania Carpatica Asig, ABC Asig, Exim Asig The Market Participants

4. Page 4 Aims of the market participants The different market participants may pursue the following aims: International companies –To provide support for clients on global basis. –To grow premium income and market share globally. –To diversify the risks and exposures assumed. –To repatriate profits (but profits are not essential). Multinational companies –To provide support for local clients on a larger regional basis. –To grow premium where home market share is reaching optimum level. –To diversify the risks and exposures assumed. –To create the right environment for a possible sale. Domestic companies –To provide support for local clients on a domestic basis. –To grow premium and domestic market share. –To create the right environment for a possible sale. The Market Participants

5. Page 5 Top 10 Non-Life Premium Income breakdown Non-Life Market Composition in CEE Premium Income of the Top 10 in 2010 (All Values in USD) Source: AXCO The following breakdown of the Top 10 Non-Life Premium Income in 6 randomly chosen countries of CEE may be representative for the situation in CEE.

6. Page 6 Top 10 no. of companies breakdown No. of companies within the Top 10 in 2010 Source: AXCO The following breakdown of the no. of companies (based on the Top 10 Non-Life Premium Income) in 6 randomly chosen countries of CEE may be representative for the situation in CEE. Non-Life Market Composition in CEE

7. Page 7 Top 10 origin of the non-domestic companies breakdown Origin of the international / multinational companies within the Top 10 in 2010 The following breakdown of the non-domestic companies (based on the Top 10 Non-Life Premium Income) in 6 randomly chosen countries of CEE may be representative for the situation in CEE. Non-Life Market Composition in CEE

8. Page 8 Origin of the active multinational / international groups Origin of the international / multinational groups in 2010 The following breakdown of the origin of groups (based on the Non-Life Premium Income of 6 randomly chosen countries of CEE) may be representative for the situation in CEE. Non-Life Market Composition in CEE

9. Page 9 Current reinsurance issue Current Reinsurance issue Are Reinsurers heading for the exit in Romania and Eastern Europe? Romania Eastern Europe “Moral Damages” (Pain and Suffering)

10. Page 10 The Future Outlook Romanian Courts Compulsory Catastrophe policies (“PAD” policies) Solvency II

11. Distinctive. Choice. JLT Re Thank you very much.