March2013GLOBAL INSURANCE SOLUTIONSREINSURANCE MARKET REVIEW                             HISTORY             OVERVIEW     ...
HISTORY OF  THE RUSSIAN INSURANCE MARKET    The history of the modern Russian insurance & reinsurance      left to the dom...
The Russian reinsurance market directly depends on the             Comparing the Western reinsurance market to the Russian...
Russian market in terms of financial standings                                                    Paid-up Capital     Asset...
Russian market in terms of financial standings                                                                        Finan...
Russian market in terms of financial standings                                                                  Ratings    ...
Inward reinsurance                                                      Liability risks                                   ...
Marine risks                                                                   Cargo risks                                ...
MAJOR RUSSIAN INSURANCE LOSSES    Over the past twelve years the            2010Russian insurance & reinsurance market    ...
GLINSO OVERSEAS                                                risks from South-East Asia is a                            ...
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GLINSO March 2013 Reinsurance Market Overview

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GLINSO March 2013 Reinsurance Market Overview

  1. 1. March2013GLOBAL INSURANCE SOLUTIONSREINSURANCE MARKET REVIEW HISTORY OVERVIEW CASE STUDY From the 1990 and Financial statistics, Non-sanctioned up to now classes of business, potential capacity loss history ! ! page 1
  2. 2. HISTORY OF THE RUSSIAN INSURANCE MARKET The history of the modern Russian insurance & reinsurance left to the domestic players. At the moment there are overmarket started in 1990. We can consider the Russian 200 insurance companies operating in Russia, and over 50 ofreinsurance market to become relatively independent around them accept risks from abroad.1992 when the first national reinsurance companies began to Now, we would like to come to the main factorsappear. promoting the further development of the Russian Currently, the Russian reinsurance market is represented reinsurance market and its integration into the global market.by three groups of operators providing inward reinsurance 1. On the 1st of January 2012 the minimum requirement forservices. The first group is composed of Russian composite the share capital for companies licensed to operate asinsurance companies, also involved in reinsurance. The second inward reinsurers was increased from USD 4.07 Mio togroup consists of Russian specialized reinsurance companies USD 16.3 Mio. This will lead to the increase of(licensed exclusively for reinsurance). And finally, foreign reinsurance capacities, improve reliability of theinsurance and reinsurance companies can be referred as the reinsurance market and force occasional (weak) playersthird group. to leave the market. Division of market sectors between these groups and their 2. Lately western reinsurance companies started tospecialization can be described in general as follows: reconsider the terms of reinsurance treaties concluded Foreign reinsurers are involved in reinsurance of large with Russian insurers. Top international reinsurers haveproperty, engineering and marine risks. Russian begun to pay more attention to terms and limits ofspecialized reinsurers operate in reinsurance of indirect sections. As a result, some specific risksmotor, financial risks, cargo, engineering, property previously reinsured abroad within the extensive USD 16 mioand other risks etc. And composite insurance treaty limits, can return to the Russian minimal paid-upcompanies do not occupy any particular market capital for reinsurance market.niche and do not have any specialization. On one reinsurers 3.The introduction of new compulsory types ofhand, their source of inward reinsurance has been insurance led to the prompt development of thebased on the reciprocity of risk exchange with other Russian insurance market. The introduction ofinsurers; on the other hand, some of composite players have compulsory liability insurance for hazardous industrialbuilt up sufficient capacities to reinsure significant lines of facilities (HIV) can greatly contribute to the Russianbusiness. reinsurance market growth, as under this law a national Its fair to say that Russia has developed a sound reinsurance pool will be formed. Since the law onreinsurance market, where one can find companies of different compulsory HIV liability insurance was introduced at thevalue and specialization. This is confirmed by the percentage 1st of January, 2012, over 138,000 of compulsoryfor premiums transferred from Russia to foreign reinsurers: the insurance contracts have been already signed with theresults of the first half of 2011 show 57% of reinsurance overall written premium exceeding RUB 5.6 billion (USDpremiums have been transferred abroad, and 43% have been 190 Mio). ! ! page 2
  3. 3. The Russian reinsurance market directly depends on the Comparing the Western reinsurance market to the Russiangeneral stability and growth rate of the domestic insurance one we can identify a number of differences. Generally speakingmarket. The reinsurance industry surprisingly easy to it is possible to place a major risk in the Russian market at aovercame the difficulties of recent years. Many companies lower cost and with more reasonable deductibles. According tohave come out of the financial crisis with relatively good Western reinsurers, the difference between Russian and Westernresults. Russian insurance market recently has been showing facultative reinsurance lies mainly in the area of the cost ofa clear positive trend. It is steadily growing at some 15-17% reinsurance coverage for certain risks. Due to some internal andper year and gradually approaches the international external factors Russian reinsurance industry enjoys loweroperational standards. production costs leading to rather attractive pricing for The Russian market has successfully overcome the test reinsurance products. This does not mean that our reinsuranceof paying large losses. For example, Russian reinsurance is cheap, but if compared to the international market, does notmarket has covered more than half of a USD 31 Mio loss due seem that expensive.to 2006 accident at Azovstal Metallurgical Palnt in Ukraine. A Russian reinsurers have learned to operate in accordancesubstantial part of the USD 75 Mio loss caused by fire at the within the best Western standards and have made transparentwarehouse of Protek Company - the largest pharmaceutical their financial performance. At the same time the cost ofdistributor in the country, was also paid up by Russian reinsurance in the Russian market is lower (And this cost isreinsurers. inevitably included into the basic rate for the original insured). Concordia an Industrial Complex in Kaliningrad region With this in view, it appears rather dubious whether to considersuffered a huge fire on June 11, 2010. Total sum insured the fact that the risk is reinsured in the international market (at aunder the policy of Military Insurance Company exceeded higher price and with no guaranteed reliability) to be reallyUSD 100 Mio. advantageous for the client. The main part of the risk was placed under a treaty with Another important advantage of our market is our highlythe leaders of Russian and international markets. As a result educated and professional staff grown up in Russian reinsuranceConcordia received from the insurer reimbursement in the companies. In addition to the traditionally good basic educationamount of USD 70 Mio. many Russian underwriters, lawyers, financial officers have That’s why we can say that Russian companies are able passed training abroad and/or have got academic degrees. Toto provide reliable reinsurance cover for larger risks. operate in the international market it is vitally important to speak Rating of financial stability is an important indicator of foreign languages fluently. The majority of Russian underwritersthe company’s financial standing. With the assistance of the engaged in foreign reinsurance speak English or otherinternational rating agencies such as Standard & Poors, international languages. In any case brokers are ready to assistFitch Ratings, A.M.Best and Moodys Russian reinsurance in this issue.market has made a good step forward in this direction. Today foreign business is an important trend which supports Today nearly two dozen insurance and reinsurance the positive development of the national reinsurance market. Thecompanies in Russia including almost all national market share of foreign risks in the portfolio of Russian Reinsuranceleaders are rated by international agencies. Let me remind companies has been steadily growing for the last six years andyou that Russias sovereign rating is BBB in accordance to reached almost one third of the overall reinsurance premiumsthe S&P scale. Besides, there are a number of reinsurance written by them in 2012 - 32%.operators in Russia who being one of the industry leaders, In view of the growing demand for alternative capacities inhave no international ratings. the world market the share of risks coming to Russian reinsurers Such companies, e.g. Soglasie, from abroad (mostly from the Middle East and South-East Asia)Military  Insurance  Company (VSK) and some others are is getting larger and larger.without doubt strong players in the reinsurance market. In conclusion we would like to mention the unique feature ofHowever, thanks to their specialization in servicing domestic the Russian reinsurance market. From the very beginning of theclientele they have never applied for the international rating. 1990s our reinsurance market has been completely open toNevertheless this in no way prevents them from actively foreign players, and all this time Russian companies have beenaccepting inward risks from abroad. directly competing with the leaders of the international Today Russian reinsurance market does not claim to be reinsurance industry. And not they only did survive, but just in 20a worldwide leader. However, along with leading markets we years have covered the path that Western reinsurers have beenalways need supporting markets. And as a supporting passing for centuries. And now Russian reinsurers are catchingcapacity, we are quite successfully. up the leaders of the market. ! ! page 3
  4. 4. Russian market in terms of financial standings Paid-up Capital Assets Reserves Company Name (Mio. USD) (Mio. USD) (Mio. USD)1 Rosgosstrah 270.45 4,469.47 2,246.042 SOGAZ 503.72 4,106.94 2,430.463 Ingosstrah 83.33 3,088.66 2,039.714 RESO-Garantia 103.33 2,057.39 1,162.005 Alfa Insurance 166.67 1,530.97 806.986 Military Insurance Company 106.67 984.85 666.497 Moscow Insurance Group 317.41 903.83 512.798 MAKS 70.00 849.36 501.469 Soglasie 166.26 809.26 492.3310 Renaissance Insurance Group 70.32 768.49 411.1111 VTB Insurance 51.33 665.94 448.6412 Uralsib Insurance Group 111.66 461.91 317.7713 Transneft 70.00 458.97 271.4614 Ugoria 61.11 356.73 198.3315 GUTA Insurance 50.93 312.29 180.7816 Energogarant 36.83 292.06 162.1017 Russian Insurance Center 25.00 229.19 144.4818 Pomosch Insurance Group (Giva) 55.33 197.13 86.0619 Surgutneftegaz 25.33 153.49 103.3020 BIN Insurance 35.67 128.87 67.0821 Chulpan 16.67 123.09 39.7222 NASKO 30.00 107.98 73.1023 Pari 16.67 87.98 53.1424 NPSK 21.67 84.15 45.0425 RegionSouz 50.00 77.35 20.7426 RegionGarant 16.67 70.71 33.1427 Megaruss D 18.33 64.64 25.6728 IBG 16.73 63.66 17.1229 Severnaya Kazna 16.08 62.01 40.0330 TIT 16.00 58.09 25.8731 OSK 18.70 52.23 26.4332 ASKO 16.00 50.28 19.6833 Euro-Polis 21.20 49.19 24.1834 KAMA RE 21.00 38.86 13.3835 Britanskiy Strahovoi Dom 16.67 37.00 12.9936 Spasskie Vorota 16.00 36.74 12.1237 ALROSA 20.80 36.24 11.9938 Rosles 21.67 25.70 1.1739 ZHASO Group 50.00 undisclosed undisclosed40 National Insurance Group 33.33 undisclosed undisclosed *figures valid at 25 January 2013 ! ! page 4
  5. 5. Russian market in terms of financial standings Financial results (Mio. USD) Company Name 2010 2011 2012 GPW Losses GPW Losses GPW Losses1 Rosgosstrah 2,690.26 619.11 3,161.98 1,325.69 4,012.43 1,317.892 SOGAZ 1,736.12 221.39 2,207.24 847.75 2,804.75 908.023 Ingosstrah 1,546.39 670.93 1,931.72 944.99 2,501.76 1,394.684 RESO-Garantia 1,206.17 368.89 1,513.75 763.70 1,749.82 874.615 Alfa Insurance 775.01 203.62 1,118.93 423.39 1,369.22 461.126 Military Insurance Company 861.79 279.10 1,025.09 570.17 1,160.58 560.587 Moscow Insurance Group 674.81 175.80 703.10 370.28 667.95 479.728 MAKS 326.90 54.00 420.64 264.63 535.86 305.289 Soglasie 556.92 154.66 908.52 419.51 1,155.85 588.1010 Renaissance Insurance Group 428.24 162.24 514.17 281.79 610.05 434.3011 VTB Insurance 185.06 34.13 315.59 69.84 768.94 208.9312 Uralsib Insurance Group 348.75 180.66 385.01 228.41 462.10 238.5413 Transneft 149.89 27.80 257.52 81.51 290.91 117.2214 Ugoria 332.43 85.91 266.08 189.86 289.52 204.3815 GUTA Insurance 169.35 59.42 236.42 106.65 265.14 110.1116 Energogarant 176.51 33.33 208.87 79.62 263.83 88.3417 Russian Insurance Center 105.05 18.61 106.65 20.74 103.70 45.6918 Pomosch Insurance Group (Giva) 52.00 5.22 72.77 7.41 87.01 11.1119 Surgutneftegaz 131.43 45.01 144.29 98.61 166.74 117.6820 BIN Insurance 98.49 38.37 98.74 54.76 99.79 57.4221 Chulpan 66.22 3.67 76.91 28.32 58.30 28.5322 NASKO 66.58 42.10 64.33 42.10 73.15 20.3323 Pari 45.09 8.71 56.45 15.28 63.89 16.0524 NPSK 31.69 12.72 47.42 25.86 48.61 13.4725 RegionSouz 17.96 3.30 22.71 5.22 30.07 6.4926 RegionGarant 24.65 3.58 29.15 4.86 36.71 7.4227 Megaruss D 80.63 18.43 81.19 31.32 73.49 28.3128 IBG 15.95 1.19 26.99 1.87 30.67 2.4429 Severnaya Kazna 25.75 7.02 60.42 20.68 86.11 26.0030 TIT 21.55 2.32 26.62 2.56 29.85 3.4131 OSK 30.44 8.08 43.16 19.61 61.59 25.7932 ASKO 41.53 7.97 49.04 30.33 62.14 34.3133 Euro-Polis 7.55 0.93 25.89 7.02 58.28 13.6334 KAMA RE 5.71 1.17 11.26 1.83 23.56 2.4035 Britanskiy Strahovoi Dom 18.52 2.52 21.97 3.33 41.37 3.9636 Spasskie Vorota 17.27 4.89 20.50 6.60 21.05 7.6937 ALROSA 14.50 1.18 17.35 7.17 21.28 7.8238 Rosles 12.43 3.70 13.99 5.73 14.32 13.3339 ZHASO Group 328.55 40.09 348.97 249.05 415.49 258.9640 National Insurance Group 80.24 13.41 104.77 26.28 116.98 27.69 *figures valid at 25 January 2013 ! ! page 5
  6. 6. Russian market in terms of financial standings Ratings Company Name National S&P Fitch Ownership Structure Agency National International National International1 Rosgosstrah A++ AA- BB- (stable) Privately owned2 SOGAZ A++ AA+ BBB- (stable) Gas company3 Ingosstrah A++ A++ BBB- (stable) Privately owned4 RESO-Garantia A++ AA+ BB+ (stable) Privately owned5 Alfa Insurance A++ A+ BB- (stable) Bank owned6 Military Insurance Company A++ Privately owned7 Moscow Insurance Group A+ AA- BB (stable) Bank owned8 MAKS A++ Privately owned9 Soglasie A+ Privately owned10 Renaissance Insurance Group A++ Privately owned11 VTB Insurance A++ AA+ BBB- (negative) Bank owned12 Uralsib Insurance Group A+ Bank owned13 Transneft A++ AAA BBB (stable) Oil company14 Ugoria A+ Government owned15 GUTA Insurance A+ Privately owned16 Energogarant A++ AA- BB- (stable) Privately owned17 Russian Insurance Center A BBB B (stable) Privately owned18 Pomosch Insurance Group (Giva) A A- B (stable) Privately owned19 Surgutneftegaz A+ Oil company20 BIN Insurance A Bank owned21 Chulpan A+ Privately owned22 NASKO A Privately owned23 Pari A+ Privately owned24 NPSK n/a Privately owned25 RegionSouz A Privately owned26 RegionGarant n/a Privately owned27 Megaruss D n/a Privately owned28 IBG A Privately owned29 Severnaya Kazna A Bank owned30 TIT A+ Privately owned31 OSK A Privately owned32 ASKO A Privately owned33 Euro-Polis A Bank owned34 KAMA RE A Privately owned35 Britanskiy Strahovoi Dom B+ Privately owned36 Spasskie Vorota A+ Privately owned37 ALROSA A+ Diamond company38 Rosles B++ Privately owned39 ZHASO Group A+ Railroad company40 National Insurance Group A Privately owned *figures valid at 25 January 2013 ! ! page 6
  7. 7. Inward reinsurance Liability risks GPW Losses Company name GPW Losses Company name (Mio. USD) (Mio. USD) (Mio. USD) (Mio. USD) 2010 20101 Ingosstrah 115.31 63.25 1 Ingosstrah 95.70 29.312 Rosgosstrah 104.36 70.88 2 SOGAZ 79.35 2.773 SOGAZ 65.20 21.74 3 Rosgosstrah 73.50 8.51 4 Military Insurance Company (VSK) 47.45 4.824 Moscow Insurance Group 36.03 29.30 5 RESO-Garantia 30.17 5.225 Unity Re 34.07 11.19 6 Alfa Insurance 29.52 2.406 Soglasie 33.98 4.66 7 Pomosch Insurance Group (Giva) 22.89 0.097 Alfa Insurance 27.49 11.57 8 Soglasie 22.37 1.278 Transib Re 26.08 16.71 9 Russian Insurance Center 20.70 0.519 Military Insurance Company (VSK) 16.16 3.64 10 Spasskie Vorota 13.49 1.1610 RESO-Garantia 12.91 6.5811 Rosles 12.50 3.68 201112 TIT 8.75 1.04 1 Rosgosstrah 118.26 16.6113 Energogarant 6.79 2.11 2 Ingosstrah 102.03 26.9414 Pomosch Insurance Group (Giva) 6.53 0.33 3 Alfa Insurance 59.64 5.10 4 SOGAZ 56.61 6.1915 Russian Insurance Center 5.13 5.61 5 Military Insurance Company (VSK) 50.23 6.52 2011 6 RESO-Garantia 40.79 8.161 Ingosstrah 110.60 92.26 7 Soglasie 27.30 2.482 SOGAZ 84.51 36.06 8 Pomosch Insurance Group (Giva) 23.29 0.093 Rosgosstrah 90.98 32.00 9 Russian Insurance Center 18.12 2.444 Unity Re 42.77 8.71 10 Moscow Insurance Group 18.12 1.995 Moscow Insurance Group 39.68 17.71 first half of 20126 VTB Insurance 30.63 0.62 1 Rosgosstrah 100.87 18.107 Soglasie 26.67 13.89 2 Ingosstrah 92.70 30.138 Transib Re 24.67 13.93 3 SOGAZ 56.02 2.289 Alfa Insurance 21.99 10.83 4 Alfa Insurance 52.71 9.2810 Military Insurance Company (VSK) 21.99 10.83 5 Military Insurance Company (VSK) 38.31 8.8511 RESO-Garantia 17.50 4.13 6 RESO-Garantia 34.46 7.6912 Rosles 15.90 6.23 7 Soglasie 24.14 2.8313 TIT 13.99 5.75 8 Moscow Insurance Group 16.16 2.7814 Pomosch Insurance Group (Giva) 12.78 4.26 9 VTB Insurance 11.39 0.4515 KAMA RE 12.18 2.22 10 Britanskiy Strahovoi Dom 10.67 0.00 Company name first half of 20121 SOGAZ 86.49 n/a2 Ingosstrah 80.35 n/a3 Rosgosstrah 61.06 n/a4 Unity Re 23.44 n/a5 Soglasie 14.15 n/a6 RESO-Garantia 13.66 n/a7 KAMA RE 12.54 n/a8 Alfa Insurance 11.22 n/a9 Military Insurance Company (VSK) 10.17 n/a10 Pomosch Insurance Group (Giva) 6.89 n/a11 Rosles 6.35 n/a12 Transneft 6.08 n/a13 TIT 6.78 n/a14 Energogarant 4.72 n/a15 VTB Insurance 3.71 n/a ! ! page 7
  8. 8. Marine risks Cargo risks GPW Losses GPW Losses Company name (Mio. USD) (Mio. USD) Company name (Mio. USD) (Mio. USD) 2010 20101 Ingosstrah 27.65 16.61 1 Rosgosstrah 43.23 1.462 Military Insurance Company (VSK) 16.64 9.29 2 SOGAZ 42.72 2.513 Rosgosstrah 15.22 24.46 3 Soglasie 34.73 1.134 RESO-Garantia 13.06 7.66 4 Ingosstrah 26.43 5.315 SOGAZ 8.98 12.23 5 Military Insurance Company (VSK) 21.87 0.186 Russian Insurance Center 5.64 0.09 6 BIN Insurance 18.04 0.177 Alfa Insurance 2.68 1.16 7 Pari 13.26 2.528 Soglasie 2.68 1.54 8 Military Insurance Company 12.35 2.889 VTB Insurance 2.67 0.54 9 Russian Insurance Center 11.71 2.5110 Ugoria 2.55 2.64 10 Renaissance Insurance Group 11.46 1.96 2011 first half of 20121 Ingosstrah 30.71 15.94 1 Rosgosstrah 54.15 13.812 Military Insurance Company (VSK) 14.83 10.09 2 SOGAZ 40.80 3.223 Rosgosstrah 14.70 8.09 3 National Insurance Group 23.19 0.204 RESO-Garantia 13.74 8.75 4 Ingosstrah 22.66 13.815 Soglasie 11.70 3.05 5 Pari 15.00 2.546 SOGAZ 9.60 8.79 6 Alfa Insurance 12.93 4.607 Alfa Insurance 3.35 1.71 7 RegionGarant 12.05 0.058 Russian Insurance Center 2.97 0.21 8 RESO-Garantia 11.15 4.049 Renaissance Insurance Group 2.97 2.95 9 Military Insurance Company (VSK) 11.01 2.8710 Ugoria 2.97 1.61 10 Soglasie 8.81 1.77 first half of 2012 20111 Ingosstrah 23.96 7.82 1 Soglasie 58.23 1.592 Rosgosstrah 20.27 5.36 2 SOGAZ 53.22 5.703 SOGAZ 14.62 3.95 3 Rosgosstrah 49.50 1.894 RESO-Garantia 11.96 7.90 4 National Insurance Group 28.02 0.225 Soglasie 11.69 0.72 5 Ingosstrah 26.12 8.826 Military Insurance Company (VSK) 9.36 6.58 6 Pari 19.16 3.267 Russian Insurance Center 7.90 1.21 7 Alfa Insurance 16.90 4.288 Alfa Insurance 4.45 4.08 8 RESO-Garantia 15.62 2.029 Renaissance Insurance Group 2.79 3.86 9 Military Insurance Company (VSK) 14.18 2.1810 Ugoria 1.92 0.74 10 RegionGarant 14.18 0.00Property risks GPW Losses (Mio. (Mio. Company name USD) USD) 2011 first half of 2012 2010 1 Rosgosstrah 1,617.86 619.73 1 Rosgosstrah 1,385.57 438.031 Rosgosstrah 1,563.12 619.11 2 Ingosstrah 1,289.33 658.84 2 SOGAZ 1,247.88 175.312 SOGAZ 996.71 221.39 3 SOGAZ 1,160.25 258.36 3 Ingosstrah 1,135.94 777.103 Ingosstrah 982.94 670.93 4 RESO-Garantia 947.26 432.71 4 RESO-Garantia 794.40 397.554 RESO-Garantia 705.45 368.89 5 Military Insurance Company 616.41 373.36 5 Alfa Insurance 563.19 184.055 Military Insurance Company 540.93 279.10 6 Alfa Insurance 601.51 246.46 6 Soglasie 534.42 271.066 Alfa Insurance 439.90 203.62 7 Soglasie 600.18 251.58 7 Military Insurance Company 445.17 252.257 Soglasie 380.76 154.66 8 Moscow Insurance Group359.35 199.02 8 Renaissance Insurance Group 256.59 285.868 Renaissance Insurance Group 263.90 162.24 9 Renaissance Insurance Group 322.57 198.56 9 Moscow Insurance Group 260.01 197.729 Moscow Insurance Group332.99 175.80 10 Uralsib Insurance Group 322.57 123.61 10 Uralsib Insurance Group 173.48 98.3710 Uralsib Insurance Group 191.27 180.66 11 Ugoria 204.15 114.67 11 Ugoria 127.84 98.8511 Ugoria 154.17 85.91 12 MAKS 201.58 61.65 12 Transneft 118.10 34.4512 MAKS 116.41 54.00 13 GUTA Insurance 161.40 74.27 13 VTB Insurance 118.05 61.7513 GUTA Insurance 115.76 59.42 14 Transneft 144.38 19.40 14 GUTA Insurance 109.29 53.6314 Energogarant 100.98 33.33 15 Energogarant 126.05 40.22 15 Energogarant 100.17 36.3515 VTB Insurance 100.98 34.13 16 VTB Insurance 113.09 44.79 16 MAKS 95.07 60.2416 Russian Insurance Center 99.25 18.61 17 Russian Insurance Center112.39 13.81 17 National Insurance Group 59.25 10.9317 Transneft 84.40 27.80 ! ! page 8
  9. 9. MAJOR RUSSIAN INSURANCE LOSSES Over the past twelve years the 2010Russian insurance & reinsurance market USD  1.5 Mio - explosionhas become a mature, well-managed at metal producing plant inand regulated part of Russian economic Ukrainelife. In 2012 more then 10 bn USD have USD  2.2 Mio - loss of anbeen paid by Russian companies to Indonesian space satellitetheir clients both locally and abroad. USD  200 Mio - loss on aRussian Insurers have accumulated a hydro plant in Russiaunique experience of handling all types USD 70 Mio - loss asof losses - marine, space, engineering, Max loss a result of anproperty, power generation, aviation, earthquake over 315 million USCAT. Due to the vast territory of Russia Dollars USD  35 Mio - loss as a result ofand different types of climate zones our at new power plant explosion on asurveyors know how to deal with losses metal producing USD  100 Mio - lossin tundra, the desert, mountains or even plant at meat producing plant 2005within conditions of permanent frozen USD  2.5 Mio - helicopter USD 2.5 Mio - marine lossground. Below you will see a brief crash USD  2 Mio - damage of the Boeing 767overview of some of the losses paid by aircraftthe Russian market in the past twelve 2009years, believe us - this is just a small USD  34.2 Mio - partial loss of a Russian 2004number of them - for a more in-depth space satellite USD 1.2 Mio - marine lossanalysis we would need much more USD 16.4 Mio - loss of an Аirbus 310-324 USD 1.1 Mio - marine losstime and space than this presentation USD  10 Mio - loss due to fire at logistic USD 1 Mio - marine lossallows us. In any case we would be center in Russiadelighted to answer any questions you USD 10 Mio - agriculture loss in Russia 2003may have or supply you particular USD 1.1 Mio - marine lossdetails on any of the mentioned losses. 2008 USD 0.9 Mio - cargo loss USD 3.5 Mio - marine loss2012 USD 2.7 Mio - marine loss 2002USD  38.5 Mio - total loss of a Russian USD 2.2 Mio - marine loss USD 9 Mio - CAT event in Peruspace satellite USD 3 Mio - cash in transit USD 7 Mio - explosion at metal producingUSD 5.2 Mio - agriculture loss in Russia plant in RussiaUSD 2 Mio - CAT loss in North Korea 2007 USD  315.4 Mio - explosion at metal 20012011 producing plant in Russia USD 1 Mio - fire in a shopping centerUSD 28.7 Mio - loss of AN-148 aircraft USD  12.2 Mio - total loss of a RussianUSD  70 Mio - total loss of a Russian space satellite 2000space satellite USD  12.2 Mio - total loss of a RussianUSD 2.3 Mio - agriculture loss in Russia 2006 space satellite USD  75 Mio - loss due to fire at logistic USD  9 Mio - loss during construction of center in Russia an irrigation system USD  4.4 Mio - total loss of a Russian USD 1.9 Mio - loss during construction of space satellite a business center ! ! page 9
  10. 10. GLINSO OVERSEAS risks from South-East Asia is a great example. The markets which were GLINSO Insurance Brokers started treated outsiders 20 years agooverseas activities since early 2011, one and are strong competitors toa half year after incorporation. Europe or London now. We Today we are working with over one believe a worldwide force inhundred fifty companies capable to deal with whole insurance industry is byinward reinsurance. We have strong far greater then classic schemepartnership relations with over 30 countries, to secure all the business in aand are proud to add - with no overdue claim limited number of the usual bigpayments. companies. We are very happy with our positive Diversification is a mustworking experience with Russian, Indian, for insurance business itself Over 30African, Chinese reinsures. enforcing the effect of large Where traditional markets find some partner numbers. And history showstypes of business unworthy of their time, countries diversification is stronglyRussians enjoyed a trustworthy profitable required not only forbusiness for the last years. Selective marine mathematical reasons, but for political risks also. We are also very interested in additional Diversification high level capacity which non-classical is a must for insurance overseas Reinsurers can surely provide. business itself enforcing We are hoping for a very positive, strong the effect of large and longterm cooperation with the market and numbers law. hope our suggestions will be taken into account.GLINSO REINSURANCE MARKET REVIEW21 Noviy Arbat str., Office 1233Moscow, 119019, Russia

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