«INGO Ukraine» Joint�Stock Insurance Company

ANNUAL REPORTANNUAL REPORT

Content

1. Welcome Speech of the Head of Supervisory Council .........................86 Welcome Speech of the Chairman of the Board .................................872. About the Company ............................................................................903. History ..................................................................................................914. The Company’s Management ..............................................................925. Target segments of insurance ..............................................................946. Staff ......................................................................................................957. Key figures of the Company’s activity ..................................................987.1. Key figures of the Company’s activity for 2008 ....................................987.2. Dynamics of Premiums Written and Claims Paid Growth for the period of 2005-2008 ..........................997.3. Structure of Premiums Portfolio for 2008 ...........................................1007.3.1.Combined Property Insurance ..........................................................1017.3.2. Types of Compulsory Insurance .....................................................1027.3.3. Insurance of Motor Vehicle Transport ...........................................1037.3.4. Personal Insurance .........................................................................1047.3.5. Cargo Insurance .............................................................................1057.3.6. Special Types of Insurance .............................................................1067.4. Dynamics of Premiums Written by clients’ groups .............................1077.5. Dynamics of Premiums Written by regional branches ........................1088. Report on financial statements of CJSC «INGO Ukraine» ...................1099. The Company’s Profit and Loss Account ...........................................11010. Licenses ..............................................................................................11211. Addresses ...........................................................................................11412. Cooperation with external organizations ...........................................118

Appeal

86 87

Welcome Speech of the Head of

Supervisory Council of “INGO Ukraine“ JSIC

Dear Friends!Planning of the Company’s Activity conducted by the shareholders and management of “INGO Ukraine“ JSIC is based on the fundamental changes into the political, economic and social spheres that will occur all over the world in the nearest five years. These changes are expected to be as large-scaled in Ukraine as in other countries. Thus we reconsidered the assessment and criteria when planning the Company’s activity for the nearest years. Today we focus our attention on the reliability and financial stability of the Company.

A guaranteed settlement of all legitimate claims, offer of the insurance products satisfying the financial capacities of our customers without any reduction of their reliability, alteration of approaches to the risk assessment as well as wide service support of the customers are those very tasks which completion is to provide the market priority of our Company into the corporate and retail sectors.

Speaking about the nearest plans I would like to point out that in 2009 “INGO Ukraine“ JSIC will continue to run all those types of insurance for which the Company was granted with licenses.

On behalf of the Company Board I would like to thank all those people who contributed into the success of “INGO Ukraine“ JSIC. First of all I’m grateful to our customers for their faith in the Company. I am especially grateful to the Company’s employees for their fruitful work, creative approach and great fidelity to the Company, namely for those features that are so essential in the situation we are observing lately.

Chairman of the Board “INGO Ukraine“ JSIC

Igor Gordiyenko

Welcome Speech of the

Chairman of “INGO Ukraine“ JSIC

Ladies and Gentlemen!For all of us the 2008 turned to be a difficult year. The world financial crisis negatively influenced the Ukrainian insurance business as well. At that, in spite of all difficulties, “INGO Ukraine” JSIC managed to confirm its good name as a reliable and highly professional Insurer.

During the previous year the management and staff of the Company continued to pay rapt attention to fulfillment of their obligations to clients, increase of quality level of servicing, development of new insurance programs that permits to take into account the needs of every client. Thank to this “INGO Ukraine” JSIC increased the gross amount of premium written almost by a third, became a leader according to the claims paid amount among the insurance companies of Ukraine and drew new clients for servicing.

It is worth to understand that the 2009 year also will be difficult both for the economy as a whole and for insurance companies in particular. The crisis reveals our problems, poses new difficult problems and is a serious test for solidity and strength. But I am sure that professional experience, high qualification and ability to work hard will allow the Company not only to pass this period without losses, holding its strong position in the market, but to move from it to a new level of development.

“INGO Ukraine” JSIC is the member of the “INGO” International Insurance Group which main goal is to unite efforts of the insurers in different countries in order to establish the international system of guarantees and obligations as well as to improve the quality level of insurance servicing. Under crisis conditions the Ukrainian daughter of “Ingosstrakh” OIJSS will always have an opportunity to get assistance and support of mother company. We may firmly guarantee our understanding and effective interaction in different situations to the member-companies, and reliable and high quality insurance protection – to our clients and partners.

Alexander Grigoryev

Head of Supervisory Council of “INGO Ukraine” JSIC,

Director General of “Ingosstrakh” OIJSS

About the Company

90 91

About the Company

“INGO Ukraine” Joint-Stock Insurance Company (before November 2004 known as “Ostra-Kyiv JSIC” CJSS) is a reliable, universal Company that dynamically develops. It is within the top ten of the principal insurance organizations of Ukraine due to its premiums written and own assets amount. The Company is a stable leader regarding to the amount of claims paid.

The “Invest-Polis” Ltd Company (Russia) is the shareholder of INGO Ukraine JSIC – the structural entity of “Ingosstrakh” OIJSS – 99.9985 % of shares.

“INGO Ukraine” JSIC has gained a great fifteen years market experience in Ukraine. The Company provides all risks insurance coverage and offers services of voluntary and compulsory insurances (40 types) under two main lines: commercial, namely corporate clients, including special insurance types (marine, aviation, credit risks) and individual (retail sector) within the whole territory of Ukraine.

“INGO Ukraine” JSIC provides insurance services through its 26 branch offices and more than 100 client servicing sales-points in all regions of the country. The insurance policies of “INGO Ukraine” JSIC are being recognized in all countries. The partnership relations based on the understanding of the clients' needs, high quality servicing and comprehensive approach to completion of their tasks build up the cornerstone of the Company’s philosophy.

History

1990 “Ostra” Joint-Stock Insurance Company (ISIC) (Odessa) becomes the successor of the “Ingosstrakh” Open Insurance Joint-Stock Society (OIJSS) in Ukraine.

1991 The Kyiv branch of “Ostra” IJSS was founded.

1994 The Kyiv branch of “Ostra” IJSS was reregistered as the “Ostra-Kyiv” Joint-Stock Insurance Company.

1997 “Ingosstrakh” Transnational Group (TNG) was established. “Ostra-Kyiv” JSIC had obtained a full membership of the “Ingosstrakh” TNG.

1998 Following the financial results being nominated by “Business” newspaper “Ostra-Kyiv” JSIC was recognized as the leader among the insurance companies of Ukraine.

2000 “Ostra-Kyiv” JSIC offers the insurance programs for individuals in the market.

2002 Following the annual results the premiums written exceeded UAH 100 mln.

2003 “Ostra-Kyiv” JSIC gained “Grand Prix” at the “Insurance Internet of Ukraine, 2003” All-Ukrainian Contest. A large-scaled project on internal reorganization had started in the Company.

2004 “Ingosstrakh” JSIC (Russia) had received the control packet of shares of “Ostra-Kyiv” JSIC. “Ostra-Kyiv” JSIC had entered the “INGO” International Insurance Group. A new strategy of the Company’s development was adopted for the 2005-2008 period.“Ostra-Kyiv” JSIC changes its name for “INGO Ukraine” JSIC. “INGO Ukraine” JSIC had obtained the International Certificate of Partnership Reliability approved by the International Chamber of Commerce (Paris).

2005 A systematic work on realization of the Company’s long-term strategy had started from the beginning of the year.

2006 Following the financial results of 2005 and 2006 “INGO Ukraine” JSIC was nominated by “Business” newspaper as “The Most Professional Insurance Company in Ukraine”. “INGO Ukraine” JSIC was awarded by the National Club of Indemnity Payment for the claims paid amount in the “Voluntary Medical Insurance” class.

2007 Following the rating of “Guards 500” the INGO Ukraine JSIC gained the leading stand in the nomination “The Most Favorite Insurance Company”.

2008 “Ingosstrakh” JSIC, “INGO Ukraine” JSIC and “Ingosstrakh-Zhyttya” IC LLC had founded “INGO Ukraine ZHYTTYA” Company to broaden the range of services provided to the existing and new clients. “INGO Ukraine” JSIC became a leader regarding the amount of claims paid among all insurance companies of Ukraine.

92 93

The Company’s Management

Igor Gordiyenko

Chairman of the Board

Nataliya Nevyadomskaya

Vice-Chairman of the Board(personal insurance),Member of the Board

Alexander Matsak

Vice-Chairman of the Board(property insurance, corporate sales),Member of the Board

Lyudmyla Kolisetskaya

Chief Financial Officer,Member of the Board

Victor Shevchenko

Vice-Chairman of the Board(regional network, retail sales),Member of the Board

The Company’s Management

Andrey Bondar

Vice-Chairman of the Board(legal support and law issues)

Igor Filipenko

Vice-Chairman of the Board(company development)

Alexander Mikolenko

Vice-Chairman of the Board(motor insurance)

Tatiana Ryzhova

Vice-Chairman of the Board(foreign affairs)

94 95

Target segments of insurance

Coverage of risks for enterprisesand organizations

Coverage of risksfor individuals

• Professional liability • Commercial property and other assets • Goods in transit (cargo) • Export-import transactions including

credit risks • Company’s Employees • Aviation • Marine • Liability of transport operators

• Medical Expenses • Personal Accident • Travel Insurance • Motor CASCO and TPL • Property

The highly-qualified specialists will professionally consult you concerning all types of insurance, propose and help you to select the optimal insurance program as well as will develop the individual program at the client’s will. The financial safety and welfare of the clients are the main priorities of the company. Therefore “INGO Ukraine” pays special attention to the quality of the insurance products as well as to the additional services.

Building up of partnership relations with the clients is especially important for us, because it permits to receive the constant “feed-back” with the insured persons: to know how they estimate the offered services, whether given services fully satisfy their expectations, what are their new wishes and needs regarding insurance products and services. It provides us with the possibility of constant improvement of the insurance programs, technologies and services.

Regularly analyzing business development in Ukraine and studying the world insurance experience, “INGO Ukraine” works out the innovative insurance programs providing for the needs of the existing and potential clients.

The advantages of insurance with “INGO Ukraine” JSIC are as follows: • Many years of working experience in the insurance market • A wide range of insurance products • Individual approach • Settlement of all legitimate claims • Twenty-four-hour servicing through the assisting companies • Knowledge, experience and resources of “INGO” International Insurance

Group.

Staff

As of December 31, 2008, the amount of the staff comprised 548 employees, at that 290 of them were working in Kyiv and 258 in the offices of the regional network.

The company carries on fair, just and open policy concerning its employees. Its aim is to create the working conditions to be filled with confident and respectful atmosphere where each employee feels responsibility for the quality of personal work and for the Company’s good name.

The main principles of the staff policy of “INGO Ukraine” JSIC are as follows: • Stability, reliability and guarantee of obligations on the part of the Company • Respect to the rights and interests of employees • Orientation towards the long-term results of work • Support of human resources, i.e. the professional development of employees • General atmosphere in the Company: good will, democracy, creativity.

The Company provides all of its employees with the possibility of professional and career advancement. The high level of professional qualities of employees in “INGO Ukraine” JSIC is provided by the system of subsequent continuous training and professional improvement. Various corporate studies take priority, namely: study at workplace, tutorials, seminars and business trainings, work placement, qualification programs being proposed by corporate training center.

In 2008 eighty percent of employees of the Company improved their qualification under the programs of corporate training.

The qualification programs are also compulsory for the working agents of “INGO Ukraine” JSIC. Thus, last year, seventy-nine percent of the agents, working in Kyiv and Kyiv region, were trained under different programs.

The Company’s Employees annually confirm their competence level through regular estimation of their professional knowledge and abilities.

The Company carries on purposeful policy of succession in order to detect and prepare the candidates for each level of management, besides Company conducts activity on development of managerial and professional qualities of the successors.

The Company creates all the conditions to promote those persons who are able to take the responsibility not only for the results of his/her own activity but for the realization of team projects as well, to show prudent initiative and creativity. The career progress depends first of all on the following:

• Professional qualities; • Abilities and will; • Activity and initiative; • Ability to work for the result.

“INGO Ukraine” JSIC aims to create the effective system of motivation that permits to estimate objectively the contribution of each person, to engage the most qualified staff and to stimulate the professional development and progress of the employees.

The Company takes care of the welfare and social protection for the employees and their families, provides different insurances and realizes social programs, does its best to protect the labor and health of the staff.

Key figures

of the Company’s activity

98 99

Key figures

of the Company’s activity

7.1. Key figures of the Company's financial performance for 2008

Indicator ths UAH

Premiums written 531 100,3

Claims paid 487 698,3

Technical reserves 229 543,1

Its own capita 126 748,5

Authorized capital (as of the 1st January, 2009) 130 876,4

Number of contracts (ths pcs.) 393 454

Key figures

of the Company’s activity

7.2. The Dynamics of Premiums Written and Claims Paid for the period of 2005-2008

The following can be concluded according to the results of Company’s activity in 2008 and considering its achievements in the insurance market:

1. The Company’s written premiums came to UAH 531.1 million. The given indicator is by 24.8% higher than the similar one for 2007 and twice the same as for 2006. Positive dynamics of premiums written proves that confidence to the Company among new clients increases, and current partners and clients display their loyalty to it.

2. The Company had paid claims to the clients in amount of UAH 487.7 million that is almost three times more than the same amount paid in 2007. It is the most considerable indicator of claims paid among all the participants of Ukrainian insurance market. The Company had paid two large claims in 2008. One of them was the largest during the whole history of native insurance system and came to UAH 194 million.

3. The dynamics of claims paid figure is the ratio of claims paid to premiums written that makes 91.8%. It is one of the highest figures in the market. It proves the Company’s safety and financial stability as well as its ability to meet all legitimate claims.

188 887,2

266 976,4

425 472,4

531 100,3

487 698,3

74 256,8

113 654,7

177 041,7

0

100 000

200 000

300 000

400 000

500 000

600 000

2005 2006 2007 20080,0

20,0

40,0

60,0

80,0

100,0

Premiums written, ths UAH Claims paid, ths UAH Rate of payments, ths UAH

100 101

Key figures

of the Company’s activity

7.3. The Structure of Premiums Written Portfolio for 2008

The motor vehicle transport insurance holds 49.5 % within the portfolio of premiums written, i.e. the greatest share in the structure of premiums written portfolio of “INGO Ukraine” within some last years. The motor vehicle insurance became the most widespread type of insurance among the clients due to the rapid increase of demand in the automotive market, the accessibility of individuals and legal entities to the credit resources, as well as the wide range of the credit programs.

The combined property insurance holds 18.4% and is the second within the Company’s premiums written portfolio, while the personal insurance is the third type of insurance coming to 14.1%.

Key figures

of the Company’s activity

7.3.1. The Combined Property Insurance

In 2008 the increase of premiums written in property insurance came to 10.1% compared to 2007. The increase of premiums written under the Combined Property Insurance came from high growth rates of such insurance types in its portfolio structure as:

– Property insurance against fire risks – 117.5%. (The share of given type in the whole portfolio came to 28.1%.)

– Insurance of financial risks – 108.6%. – Insurance of TPL under property risks – 177.8%.

The amount of premiums written in voluntary insurance of property risks which share comes to 47.5% in the portfolio structure that is equivalent to UAH 46.4 million.

The growth rate is equal to the level of premiums written in 2007. The given type of premiums increased mainly due to insurance of CAR/EAR risks, insurance of building machinery and equipment as well as to cooperation with banks and leasing companies in the sphere of mortgage insurance and insurance of leasing objects.

Aviation Insurance

0,9%

Marine Insurance

0,1%Liability insurancefor non�marine

carriers1,2%

Personal Insurance1 4,0%

Insurance of Motor Vehicle Transport

49,6%

Combined Property Insurance

18,4%

Cargo Insurance4,2%

Compulsory types of insurance

11,6%

0%

20%

40%

60%

80%

100%

2005 2006 2007 2008

Insurance of credit risks

Insurance of TPL under property risks

Compulsory insurance of civil liability of nuclear plant operators

Voluntary insurance of property risks

Insurance of professional liability to the third parties

Insurance of financial risks

Fire risks

102 103

Key figures

of the Company’s activity

7.3.2. The Types of Compulsory Insurance

The amount of premiums written of “INGO Ukraine” JSIC under compulsory types of insurance for 2008 came to UAH 61.8 million that makes the increase of given indicator by 26.8% compared to the correspondent indicator in 2007. Compulsory insurance of TPL for vehicle owners takes the greatest share making 64% and the Green Card Insurance outside Ukraine takes 24% in the structure of compulsory insurance. The growth rate of premiums written makes 129.3% and 136.6% correspondently compared to the similar results for 2007 according to the given types of insurance.

The growth of premiums written under the types of compulsory insurance is influenced by the following factors:

– developed network of sales of policies within the whole territory of Ukraine;

– developed claims handling and settlement system for insured accidents requiring an independent assistance;

– mandatory availability of the insurance policy in order to pass the Technical Maintenance Examination and to receive a technical report;

– control of the DAI officers over the mandatory purchase of an insurance policy by a vehicle owner due to the increase of penalty for unavailability of such a policy (the effective period for the said penalties has started on November 17, 2008).

Key figures

of the Company’s activity

7.3.3. Insurance of Motor Vehicle Transport

In 2008 the premiums written under motor vehicle insurance that makes 99.8%, of overland transport insurance increased by 34.4% compared to the similar indicator for 2007. The rapid growth of the rate of motor vehicle insurance was caused by the increase of the structure of premiums written from CASCO insurance of vehicles. The increase of premiums written in the given type of insurance came to 134.8%. Totally 41.7 thousand insurance contracts under CASCO insurance of vehicles were concluded for the year that made the amount of UAH 257.6 million for the Company.Increase of premiums written by the “INGO Ukraine” JSIC under the given type of insurance is being caused by the following factors:

– increase of volumes of car sales in the country, i.e. 623 ths new cars were sold in 2008 (increase of the market of new car sales came to 15% com-pared to 2007);

– increase of volumes of auto crediting for the citizens where insurance of risks is the compulsory condition of banks;

– active cooperation with financial entities (Company is accredited by the leading banks and leasing companies of Ukraine);

– wide range of insurance programs for different categories of citizens and even for the most demanding clients;

– leading position in the corporate market of motor transport insurance; – developed and operating system of handling and settlement claims

engaging an independent assistance; – widening of insurer’s liability due to the use of compulsory and voluntary

TPL; – wide range of additional services.

The growth rate of the voluntary TPL insurance came to 121.8% and the voluntary insurance of drivers and passengers against accidents came to 109.3%, the voluntary insurance of railway transport – 12,8%.

0%

20%

40%

60%

80%

100%

2005 2006 2007 2008

Compulsory Insurance of TPL Compulsory insurance against accidents

Green Card Insurance outside Ukraine Other compulsory insurances

0%

20%

40%

60%

80%

100%

2005 2006 2007 2008

Voluntary insurance of railway transportCASCO insurance of motor vehicles

Insurance of drivers and passengers against traffic accidents (CASCO)

Voluntary Insurance of TPL (CASCO)

104 105

Key figures

of the Company’s activity

7.3.4. Personal Insurance

Following the annual results by personal insurance type the Company collected UAH 74.6 million that makes 23.2% of growth compared to the similar indicator for 2007. The highest rates of growth in Personal Insurance fall at voluntary insurance of medical expenses and travel insurance regarding the overseas sickness medical expenses, i.e. 127.1% and 122% correspondently.

Key figures

of the Company’s activity

7.3.5. Cargo Insurance

The efficiency, taking into account of all peculiarities and specificity of Cargo insurance, development of appropriate patterns of cooperation, reliability of insurance cover provided by first-class reinsurance programs are the key factors which allow the Company to work effectively with current clients and to draw new ones. This, for its part, makes an opportunity to achieve rapid rates of premiums written growth.

Thus the amount of premiums written under cargo insurance in 2008 increased by 8.4% compared to 2007.

0%

20%

40%

60%

80%

100%

2005 2006 2007 2008

Insurance of medical expensesfor travellers abroadPersonal Accident Insurance

Voluntary Medical Expenses Insurance

Overseas Sickness Medical Expenses Insurance

0%

20%

40%

60%

80%

100%

2005 2006 2007 2008

Cargo Insurance Compulsory Insurance of Hazardous Cargo

106 107

Key figures

of the Company’s activity

7.3.6. Special Types of Insurance

In 2008 “INGO Ukraine” JSIC shown positive dynamics regarding the premiums written under the special types of insurance, namely: aviation insurance, marine insurance and liability insurance of non-marine carriers. The policy of professional analysis and risk estimation, individual approach, consideration of the insurable objects’ features and clients’ requests, providing insurance services to individuals and large enterprises allow the Company to hold its own place in the given markets and, in case of an insured accident occurrence, to fulfill its liabilities to clients in the best way.

Key figures

of the Company’s activity

7.4. Dynamics of Premiums Written by clients’ groups

Following the results of 2008 more than 130 ths individuals and almost 9 thousands legal entities, among which there are the principal and well-known native and foreign banks, enterprises and companies, became the clients of “INGO Ukraine”.

Following the results of premiums written for the year the part of the corporate clients came to 54.2%, and the part of individual clients came to 45.8%. Compared to 2007, the Company increased the part of providing services to the citizens by 6.8%.

In its activity “INGO Ukraine” JSIC follows the principles of openness, transparency and client-orientation. The Company works on improvement of the existing insurance services as well as on development and introduction of new ones for clients, taking into account their needs and requirements, by means of quality level improvement of servicing and further development of the regional and agency networks. All these measures are intended to make the insurance services closer and more accessible to clients and to provide them with a reliable protection, the best quality servicing, effective claims handling and settlement of losses in case of an insured accident occurrence.

0%

20%

40%

60%

80%

100%

2005 2006 2007 2008

Aviation Insurance Marine Insurance Insurance of non�marine carriers

0%

20%

40%

60%

80%

100%

2005 2006 2007 2008

Individuals, ths UAH Legal entities, ths UAH

108 109

Key figures

of the Company’s activity

7.5. Dynamics of Premiums Written by regional branches

The regional network represented by 26 branch offices of the Company in all regions of Ukraine and more than 100 client-servicing offices in the cities and regional centers of the country provides clients with a high quality servicing and wide range of insurance services.

In 2008 the branches of the Company collected UAH 219.6 million of premiums under all types of insurance that came to 41.4% from the total amount of the premiums written by the Company.

Report on financial statements of

CJSC «INGO Ukraine»

Ref. # 83-AB Kyiv, April 21, 2009

INDEPENDENT AUDITOR'S OPINION

To: The Management of CJSC insurance company «INGO Ukraine»

We have performed the audit examination of designated financial statements of the CJSC insurance company «INGO Ukraine» (hereinafter referred to as the Company) for the year of 2008. The management of the Company bears the responsibility for these financial statements. We are responsible for expressing our opinion on data consistency and completeness of the financial statements according to the audit examination. We have performed the audit in accordance with the International Standards on Auditing and Regulations of State Committee on Regulations of Financial Services Markets # 5204 as of 03.02.2005. These standards require that we plan and perform an audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. The audit includes examination of the evidence by the means of testing that supports the amounts and information disclosures in the financial statements. The audit examination also includes the evaluation of used principles of accounting and previous valuations conducted by the management as well as a valuation of the general submission of the financial statements. We believe that our audit provides a reasonable basis for the audit opinion.

On our opinion financial statements in all material aspects fairly and truly reflect the financial position of the company for the year of 2008. Each part of the reporting data complies with requirements of the Order of the State Committee on Regulations of Financial Services Markets # 39 as of 03.02.2004, International Standards on Auditing, Ukraine Accounting Standards and legal and statutory acts of Ukraine.International Audit Company

Midsnell Group International «Consulting Ltd.»

Office 2, Gusovskogo St., 11/11, Kiev, Ukraine

Date of auditor's opinion drawing up: April 21, 2009

General Director of the

International audit company

Midsnell Group International «Consulting Ltd.»Auditor (cert. A # 5718 APU)

Chief auditor (cert. A # 5888 APU)

Chief auditor (cert. A # 417 APU)

Auditor's assistant

0%

20%

40%

60%

80%

100%

2005 2006 2007 2008

Branch offices Head Office and representative offices

BUSINESS SOLUTIONS WORLWIDEКиїв, 01011, Україна, вул. Гусовського 11/11, офіс 2, тел./факс: +38 (044) 569 1562, моб.: +38 (067) 236 1798, +38 (067) 466 1777E-mail: consulting@cosulting.ua, www.consulting.uaMGL Consulting is a member of MGI. A worldwide association of indeependent auditing, accounting and consulting firms.

110 111

The Company’s Profit

and Loss Account

ItemsLine

codeTotal

I. Income from providing services by types of non-life insurance

Insurance payments (premiums written, installments) 010 531 100,3

From branches 011 219 630,6

From individual insureds 012 243 174,9

From reinsureds 013 10 801

From non-resident reinsureds 014 1 642,3

Amounts of insurance payments (premiums written, installments) payable to reinsurers 020 84 986,8

To non-resident reinsurers 021 65 471,8

The reserves of unearned premiums written and balances of insurance payments received from state compulsory insurance as of the beginning of the reporting period

030 140 622,3

The reserves of unearned premiums written and balances of insurance payments received from state compulsory insurance as of the end of the reporting period

040 160 620,2

The part amount payable to reinsurers in the reserves of unearned premiums written as of the beginning of the reporting period 050 21 090,6

The part amount payable to reinsurers in the reserves of unearned premiums written as of the end of the reporting period 060 13 677,2

Income from providing services by types of non-life insurance (earned insurance payments),010-020+030-040-050+060

070 418 702,2

III. Income from providing services to other insurers and other services (performance of

various operations)

Income from providing services to other insurers 110 228

ІV. Other operating incomes, other and unexpected incomes

Amounts returned from technical reserves other than the reserves of unearned premiums written 130 5 297,4

Part of the amount of claims paid and insurance indemnities reimbursed by the reinsurers 150 219 420,9

By non-resident reinsurers 151 203 662,3

Amounts received as a result of subrogation of the right for recourse (subrogated to the Insurer by insureds or other persons/parties) regarding the liablepersons/ parties

180 907,9

Other operating incomes 200 233 548,6

Financial incomes 210 20 557,7

Incomes from deposits 213 20 524,6

Other incomes 220 212,4

Unexpected incomes 230 104,8

V. Claims paid and insurance indemnities as well as cash surrender values

Claims paid and insurance indemnities 240 487 698,3

Including those made under the insurance agreements/contracts, which validity periods exceeded upon the date of making decision to pay a claim/insurance indemnity

241 222 726,1

VІ. Operating expenses, other and extraordinary expenses

Allocation to technical reserves, other than the reserves of unearned premiums written

260 34 120,1

Allocation to reserve for catastrophes under compulsory insurance of civil liability for damage caused by nuclear plant operators

270 1 979,6

The Company’s Profit

and Loss Account

Items Line

codeTotal

Allocation to the official insurance reserve funds 290 394.2

Expenditures connected with concluding and renewal of the insurance agreements/contracts (acquisition costs)

300 105 896,2

Including agents’ commission 301 55 380

Expenditures connected with concluding and renewal of the reinsurance agreements 310 938,1

Including brokers’ commission 311 136,1

Expenses connected with claims handling and insured accidents’ settlement (abandonment expenses) occurred during the reporting period

320 11 730,3

including payments of legal costs 321 82,4

payment of expert’s (estimation) work 322 3 052,5

Among which the payment for the services provided by average commissioners

323 902,2

payment of services provided by assisting companies* 324 3 242,2

Expenses conducted with claims handling and insured accidents’ settlement (abandonment expenses) occurred within the previous reporting periods

330 8,369,9

including payments of legal costs 331 33,6

payment of expert’s (estimation) work 332 4 459,9

Among which the payment for the services provided by average commissioners

333 57,5

payment of services provided by assisting companies 334 2 250,4

Among which the payment for the services provided by the assisting non-resident companies

335 4,5

Other administrative costs 350 30 121,1

Other expenses incurred in order to have a market for rendering services

360 11 339,4

including expenses for advertising and marketing 361 7 607,5

Other operating expenses 370 190 688,6

Financial expenses 380 21,4

Other expenses 390 1 763,5

Extraordinary expenditures 400 111 5

VІІ. Financial performance from principal activity and extraordinary events (before taxation)

Result from principal activity 410 -5 170,8

Result from financial transactions 420 20 536,3

Result from other common activity 430 -1 551,1

Result from extraordinary events 440 -6,7

VІІІ. Income taxes from common activity and from emergency events

Income taxes from principal activity 450 28 642,7

Including taxes upon gross incomes from the activity in non-life insurance types

451 28 642,7

Income taxes from extraordinary events 460 15,9

ІХ. Net

Profit 470 -14 850,9

Loss 480

Chairman Igor Gordiyenko

Chief Financial Executer Lyudmyla Kolisets’ka

112 113

Licenses

No 100196 dated July 21, 2005 Voluntary insurance of railway transport

No. 100198 dated July 22, 2005 Compulsory insurance of liability for carriers of hazardous cargo in case of negative consequences caused by hazardous cargo carriage

No. 100259 dated August 12, 2005 Compulsory insurance of civil liability of Ukrainian citizens that own or otherwise legally possess weapons for the harm that may be caused to the third party or his/her property due to possessing, keeping or use of such weapon

No. 396181 dated March 3, 2008 Compulsory personal insurance against traffic accidents for drivers and passengers of motor transport

No. 398190 dated May 31, 2008 Voluntary Medical Expenses Insurance (Permanent Health Insurance)

No. 442496 dated April 16, 2009 Compulsory Aviation Insurance (Civil Aviation)

No. 377568 dated January 17, 2008 Compulsory Motor Vehicle Owners Third Party Liability

No. 299192 dated December 22, 2006 Compulsory insurance of civil liability of operators of nuclear plants/facilities for damage that may be caused due to nuclear incident

No. 299431 dated February 9, 2007 Compulsory insurance of civil liability of economic subjects for harm that may be caused by fires and accidents at the objects of increased danger, including fire and explosion hazardous objects as well as objects which economic activity may lead to ecological, sanitary and epidemiological accidents

No. 299432 dated February 5, 2007 Voluntary Health Insurance against occurrence of a disease

No. 299433 dated February 5, 2007 Voluntary Medical Expenses Insurance

No. 299434 dated February 5, 2007 Voluntary Cargo and Luggage Insurance

No. 299435 dated February 5, 2007 Voluntary Property Insurance (except for railway, motor, air, water transport (marine inland waters and other kinds of water transport), cargo and baggage

No. 299436 dated February 5, 2007 Voluntary Insurance of liability of water

transport owners (including liability of carriers)

No. 299437 dated February 5, 2007 Voluntary Insurance of Water Transport (marine inland waters and other kinds of water transport)

No. 299438 dated February 5, 2007 Voluntary Insurance of Aircrafts

No. 299439 dated February 5, 2007 Voluntary Insurance of overland transport (except for railway transport)

No. 299440 dated February 5, 2007 Voluntary Insurance of civil liability of overland transport owners (including liability of carriers)

No. 299441 dated February 5, 2007 Voluntary Insurance of liability of Aircraft Owners (including liability of air carriers)

No. 299442 dated February 5, 2007 Voluntary Personal Accident Insurance

No. 299443 dated February 5, 2007 Voluntary Insurance of liability to the third parties (except for the civil liability of overland transport owners, liability of air transport owners, liability of water transport owners (including liability of carriers)

No. 299444 dated February 5, 2007 Voluntary Insurance against Fire and Acts of God

No. 299 445 dated February 5, 2007 Voluntary Insurance of Financial Risks

No. 360158 dated August 27, 2007 Voluntary Insurance of Credits (including liability of debtor for unpaid credit)

No. 396180 dated March 3, 2008 Compulsory Personal Insurance of employees of departmental (except for those working at the establishments and organizations financed from State Budget of Ukraine) and rural fire protection service as well as members of voluntary fire protection guards (teams)

Licenses

114 115

Addresses

Head office

33 Vorovskoho Str., Kyiv

tel.: +38 044 490 2744; 490 2745

fax: +38 044 490 2748

e-mail: office@ingo.com.ua

www.ingo.com.ua

Information center: 8 800 30 555 30

Offices in the regions

Vinnytsya

13 Internatsionalna Str.tel. +38 0432 57 9223; 57 9424fax +38 0432 67 6968e-mail: vin@ingo.com.ua

Donetsk

23 Shchorsa Str.tel.+38 062 345 3761 (62,63) tel. +38 062 349 9831 (32,33)e-mail: donetsk@ingo.com.ua

Dnipropetrovsk

30 Shevchenko Str.tel. +38 056 790 5328; 790 5333 e-mail: dp@ingo.com.ua

Zhytomyr

5-А Kafedralna Str., Off. 205tel. +38 0412 41 8166; 46 3265e-mail: zhitomir@ingo.com.ua

Zaporizhzhya

21 Metalurhiv Str.tel. +38 061 228 3200e-mail: zp@ingo.com.ua

Ivano-Frankivsk

4 Nezalezhnosti Str., Off. 316tel. +38 0342 55 9683; 71 0444fax +380342 77 9720e-mail: if@ingo.com.ua

Kirovograd

18/21 Frunze Str.tel. +38 0522 22 1426fax +38 0522 22 4408 e-mail: kirovograd@ingo.com.ua

Kremenchuk

30 Proletarska Str., Off. 6tel. +38 0536 79 3485fax: +38 0536 74 3491e-mail: kremenchug@ingo.com.ua

Kryvyy Rig

14-А Meleshkina Str., Off. 305tel. +38 0564 40 0886; 64 8310e-mail: ingo.kr.kog@ukrpost.ua

Lugansk

7-Е Khersonska Str.tel. +38 0642 98 0943e-mail: lugansk@ingo.com.ua

Lutsk

6 Voli Prospect, Off. 23tel. +38 0332 72 5168; 72 3647e-mail: lutsk@ingo.com.ua

Lviv

2 Kostyshko Str., Off. 280 Sakharova Str.tel. +38 032 294 8700; 295 8700e-mail: lviv@ingo.com.ua

Addresses

Mykolayiv

3-V(B) Sadova Str.tel./fax: +38 0512 76 7100 (01,02)

Odessa

4-D Shevchenko Prospect, Off. 32tel.+38 048 776 0001 (02,03)e-mail: od@ingo.com.ua

Poltava

2-B Chornovola Str.tel. +38 0532 50 0135; 61 3455fax: +38 0532 50 0134e-mail: poltava@ingo.com.ua

Rivne

21 Kyivska Str., Off. 302, 308, 310tel. +38 0362 63 4683; 63 4636e-mail: rovno@ingo.com.ua

Simferopol

40 Karla Marksa Str.tel.+38 0652 79 0190 (91,92,93) fax +38 0652 79 0194e-mail: crimea@ingo.com.ua

Sumy

29-D Soborna Str.tel. +38 0542 62 2351

Ternopil

5 Hoholya Str.tel. +38 0352 55 0094e-mail: ternopil@ingo.com.ua

Uzhgorod

3 Kyivska Naberezhna Str.tel. +38 0312 66 0608; 61 4379e-mail: uz@ingo.com.ua

Kharkov

90 Sumska Str. tel. +38 057 700 2539; 700 4858e-mail: kh@ingo.com.ua

Kherson

7 9-Sichnya Str., Off. 1tel. +38 0552 46 1374; 46 1366fax +38 0552 46 1369 e-mail: ks@ingo.com.ua

Khmelnitskiy

22 Svobody Str., Storey 3tel. +38 0382 78 7670fax +38 0382 78 7671 e-mail: km@ingo.com.ua

Cherkasy

37 Baydy Vyshnevetskoho Str.,Off. 413,414tel. +38 0472 36 8583fax +38 0472 33 0474e-mail: cherkassy@ingo.com.ua

Chernihiv

12 Shchorsa Str., Off.28tel./fax: +38 0462 61 4444; 61 4980e-mail: cn@ingo.com.ua

Chernivtsi

127 Nezalezhnosti Prospecttel. +38 0372 58 4208e-mail: cv@ingo.com.ua

There are centers of customers’ service in district centers and industrially developed cities.

Cooperation

with external

organizations

118 119

Motor (Transport) Insurance Bureau of Ukraine

MTIBU is the only union of insurers that conducts compulsory insurance of civil and legal liability of owners

of motor vehicles for the damage caused to the third parties. The membership of the insurers in MTIBU is the compulsory condition for the fulfillment of activity on compulsory insurance of TPL of owners of motor vehicles. MTIBU is a non-profit organization. Today there are 82 insurance companies had gained the membership in the Bureau. “INGO Ukraine” JSIC is a member of MTIBU since 1994.

Kyiv Chamber of Commerce and Industry

Kyiv Chamber of Commerce and Industry began its activity in 1973 when Kyiv Branch of the Chamber of Commerce and Industry was founded in Ukraine. The range of its activity is wide and aimed at the establishment of business contacts between Ukrainian and foreign entrepreneurial groups, mastering of new ways of cooperation, participation in conducting international programs and holding of

business meetings, business missions, conferences and presentations. “INGO Ukraine” JSIC is a member of KCCI and CCIU since 2005.

Ukrainian National Committee

of the International Chamber of Commerce

Ukrainian National Committee of the International Chamber of Commerce (UNC ICC) is the only authorized

representative of the World Business Organization in Ukraine and the first National Committee of the International Chamber of Commerce within the CIS territory. The following items are within the competence of UNC ICC: explanation of the rules and ethics of international business running as well as protection of the national manufacturer’s interests in the foreign markets. One of the main tasks of the statutory activity of UNC ICC is to acquaint the authorities of Ukraine about the world business viewpoint and its most urgent problems. There are 11 special profile committees in UNC ICC which are to study the most considerable economic issues corresponding to the structure of the International Chamber of Commerce. The purpose of UNC ICC is lobbying of the Ukrainian manufacturer interests in the international market as well as the promotion to coming of the foreign partners in the native market by means of investment, manufacturing cooperation and mutual mastering of economic area of the third countries. “INGO Ukraine” JSIC has obtained the membership of UNC ICC in 1998.

Ukrainian Insurance Federation

The Association was registered on December 23,

2008 to promote for the development of transparent classical insurance in Ukraine, preventing from the

unfair activity of its participants, warranty of the high level of insurance services that are provided by the participants of the Association as well as for the purposes of integration of Ukrainian and European insurance markets, protection of the interests of the Association participants. 14 insurance companies became the members of UIF. “INGO Ukraine” JSIC also became the member of the Federation Presidium.

American Chamber of Commerce

American Chamber of Commerce is an international association in Ukraine uniting more than 600 national and foreign companies. They closely cooperate in the field of establishment and development of private entrepreneurial

activity in our country as well as the support of formation of strong and powerful market economy. The considerable part of the organization’s work is conducted by its multiple committees that are the effective bodies for the representation of interests and viewpoints of the Board members both before the Ukrainian Government and authorities and the governments of other countries. “INGO Ukraine” JSIC has gained the membership of American Chamber of Commerce in

1995.

European Business Association

European Business Association was founded in 1999 as the forum for discussion and solving problems with which may encounter businessmen in Ukraine. Today European Business Association is a leading organization of international business in Ukraine and unites above 800

European, Ukrainian and International Companies proposing them the following: group protection of interests at central and local authorities of state management of Ukraine, at foreign and international organizations; the possibility to participate in decision taking at the level of the European Union due to the close cooperation with the European Commission and the embassies of the European Union in Kyiv; constant informational support concerning the processes that influence business running in Ukraine as well as seminars and presentations; social measures providing the possibility for the representatives of the European Business Community to meet informally and to promote business development. European Business Association acts as an independent establishment reporting to its members. Since the date of its foundation the basic business of the Association has been consisting in taking steps aimed at improvement of investment climate. On 8th September, 2005, “INGO Ukraine” JSIC became the member of the Association according to the decision made by the Board of Directors of European Business Association.

Cooperation with

external organizations

Cooperation with

external organizations