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March

HISTORYFrom the 1990 and up to now

OVERVIEWFinancial statistics, classes of business, loss history

CASE STUDYNon-sanctioned potential capacity

GLOB

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SURA

NCE S

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2013

REIN

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The history of the modern Russian insurance & reinsurance market started in 1990. We can consider the Russian reinsurance market to become relatively independent around 1992 when the first national reinsurance companies began to appear.

Currently, the Russian reinsurance market is represented by three groups of operators providing inward reinsurance services. The first group is composed of Russian composite insurance companies, also involved in reinsurance. The second group consists of Russian specialized reinsurance companies (licensed exclusively for reinsurance). And finally, foreign insurance and reinsurance companies can be referred as the third group.

Division of market sectors between these groups and their specialization can be described in general as follows:

Foreign reinsurers are involved in reinsurance of large property, engineering and marine risks. Russian specialized reinsurers operate in reinsurance of motor, financial risks, cargo, engineering, property and other risks etc. And composite insurance companies do not occupy any particular market niche and do not have any specialization. On one hand, their source of inward reinsurance has been based on the reciprocity of risk exchange with other insurers; on the other hand, some of composite players have built up sufficient capacities to reinsure significant lines of business.

It's fair to say that Russia has developed a sound reinsurance market, where one can find companies of different value and specialization. This is confirmed by the percentage for premiums transferred from Russia to foreign reinsurers: the results of the first half of 2011 show 57% of reinsurance premiums have been transferred abroad, and 43% have been

left to the domestic players. At the moment there are over 200 insurance companies operating in Russia, and over 50 of them accept risks from abroad.

Now, we would like to come to the main factors promoting the further development of the Russian reinsurance market and its integration into the global market.1. On the 1st of January 2012 the minimum requirement for

the share capital for companies licensed to operate as inward reinsurers was increased from USD 4.07 Mio to USD 16.3 Mio. This will lead to the increase of reinsurance capacities, improve reliability of the reinsurance market and force occasional (weak) players to leave the market.

2. Lately western reinsurance companies started to reconsider the terms of reinsurance treaties concluded with Russian insurers. Top international reinsurers have

begun to pay more attention to terms and limits of indirect sections. As a result, some specific risks

previously reinsured abroad within the extensive treaty limits, can return to the Russian reinsurance market.3.The introduction of new compulsory types of

insurance led to the prompt development of the Russian insurance market. The introduction of

compulsory liability insurance for hazardous industrial facilities (HIV) can greatly contribute to the Russian reinsurance market growth, as under this law a national reinsurance pool will be formed. Since the law on compulsory HIV liability insurance was introduced at the 1st of January, 2012, over 138,000 of compulsory insurance contracts have been already signed with the overall written premium exceeding RUB 5.6 billion (USD 190 Mio).

HISTORY OFTHE RUSSIAN INSURANCE MARKET

USD 16 miominimal paid-up

capital for reinsurers

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The Russian reinsurance market directly depends on the general stability and growth rate of the domestic insurance market. The reinsurance industry surprisingly easy to overcame the difficulties of recent years. Many companies have come out of the financial crisis with relatively good results. Russian insurance market recently has been showing a clear positive trend. It is steadily growing at some 15-17% per year and gradually approaches the international operational standards.

The Russian market has successfully overcome the test of paying large losses. For example, Russian reinsurance market has covered more than half of a USD 31 Mio loss due to 2006 accident at Azovstal Metallurgical Palnt in Ukraine. A substantial part of the USD 75 Mio loss caused by fire at the warehouse of Protek Company - the largest pharmaceutical distributor in the country, was also paid up by Russian reinsurers.

Concordia an Industrial Complex in Kaliningrad region suffered a huge fire on June 11, 2010. Total sum insured under the policy of Military Insurance Company exceeded USD 100 Mio.

The main part of the risk was placed under a treaty with the leaders of Russian and international markets. As a result Concordia received from the insurer reimbursement in the amount of USD 70 Mio.

That’s why we can say that Russian companies are able to provide reliable reinsurance cover for larger risks.

Rating of financial stability is an important indicator of the company’s financial standing. With the assistance of the international rating agencies such as Standard & Poor's, Fitch Ratings, A.M.Best and Moody's Russian reinsurance market has made a good step forward in this direction.

Today nearly two dozen insurance and reinsurance companies in Russia including almost all national market leaders are rated by international agencies. Let me remind you that Russia's sovereign rating is BBB in accordance to the S&P scale. Besides, there are a number of reinsurance operators in Russia who being one of the industry leaders, have no international ratings.

S u c h c o m p a n i e s , e . g . S o g l a s i e , Military  Insurance  Company (VSK) and some others are without doubt strong players in the reinsurance market. However, thanks to their specialization in servicing domestic clientele they have never applied for the international rating. Nevertheless this in no way prevents them from actively accepting inward risks from abroad.

Today Russian reinsurance market does not claim to be a worldwide leader. However, along with leading markets we always need supporting markets. And as a supporting capacity, we are quite successfully.

Comparing the Western reinsurance market to the Russian one we can identify a number of differences. Generally speaking it is possible to place a major risk in the Russian market at a lower cost and with more reasonable deductibles. According to Western reinsurers, the difference between Russian and Western facultative reinsurance lies mainly in the area of the cost of reinsurance coverage for certain risks. Due to some internal and external factors Russian reinsurance industry enjoys lower production costs leading to rather attractive pricing for reinsurance products. This does not mean that our reinsurance is cheap, but if compared to the international market, does not seem that expensive.

Russian reinsurers have learned to operate in accordance within the best Western standards and have made transparent their financial performance. At the same time the cost of reinsurance in the Russian market is lower (And this cost is inevitably included into the basic rate for the original insured). With this in view, it appears rather dubious whether to consider the fact that the risk is reinsured in the international market (at a higher price and with no guaranteed reliability) to be really advantageous for the client.

Another important advantage of our market is our highly educated and professional staff grown up in Russian reinsurance companies. In addition to the traditionally good basic education many Russian underwriters, lawyers, financial officers have passed training abroad and/or have got academic degrees. To operate in the international market it is vitally important to speak foreign languages fluently. The majority of Russian underwriters engaged in foreign reinsurance speak English or other international languages. In any case brokers are ready to assist in this issue.

Today foreign business is an important trend which supports the positive development of the national reinsurance market. The share of foreign risks in the portfolio of Russian Reinsurance companies has been steadily growing for the last six years and reached almost one third of the overall reinsurance premiums written by them in 2012 - 32%.

In view of the growing demand for alternative capacities in the world market the share of risks coming to Russian reinsurers from abroad (mostly from the Middle East and South-East Asia) is getting larger and larger.

In conclusion we would like to mention the unique feature of the Russian reinsurance market. From the very beginning of the 1990s our reinsurance market has been completely open to foreign players, and all this time Russian companies have been directly competing with the leaders of the international reinsurance industry. And not they only did survive, but just in 20 years have covered the path that Western reinsurers have been passing for centuries. And now Russian reinsurers are catching up the leaders of the market.

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Russian market in terms of financial standings

Company Name Paid-up Capital(Mio. USD)

Assets(Mio. USD)

Reserves(Mio. USD)Company Name Paid-up Capital

(Mio. USD)Assets

(Mio. USD)Reserves

(Mio. USD)

12345678910111213141516171819202122232425262728293031323334353637383940

Rosgosstrah 270.45 4,469.47 2,246.04SOGAZ 503.72 4,106.94 2,430.46Ingosstrah 83.33 3,088.66 2,039.71RESO-Garantia 103.33 2,057.39 1,162.00Alfa Insurance 166.67 1,530.97 806.98Military Insurance Company 106.67 984.85 666.49Moscow Insurance Group 317.41 903.83 512.79MAKS 70.00 849.36 501.46Soglasie 166.26 809.26 492.33Renaissance Insurance Group 70.32 768.49 411.11VTB Insurance 51.33 665.94 448.64Uralsib Insurance Group 111.66 461.91 317.77Transneft 70.00 458.97 271.46Ugoria 61.11 356.73 198.33GUTA Insurance 50.93 312.29 180.78Energogarant 36.83 292.06 162.10Russian Insurance Center 25.00 229.19 144.48Pomosch Insurance Group (Giva) 55.33 197.13 86.06Surgutneftegaz 25.33 153.49 103.30BIN Insurance 35.67 128.87 67.08Chulpan 16.67 123.09 39.72NASKO 30.00 107.98 73.10Pari 16.67 87.98 53.14NPSK 21.67 84.15 45.04RegionSouz 50.00 77.35 20.74RegionGarant 16.67 70.71 33.14Megaruss D 18.33 64.64 25.67IBG 16.73 63.66 17.12Severnaya Kazna 16.08 62.01 40.03TIT 16.00 58.09 25.87OSK 18.70 52.23 26.43ASKO 16.00 50.28 19.68Euro-Polis 21.20 49.19 24.18KAMA RE 21.00 38.86 13.38Britanskiy Strahovoi Dom 16.67 37.00 12.99Spasskie Vorota 16.00 36.74 12.12ALROSA 20.80 36.24 11.99Rosles 21.67 25.70 1.17ZHASO Group 50.00 undisclosed undisclosedNational Insurance Group 33.33 undisclosed undisclosed

*figures valid at 25 January 2013

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Russian market in terms of financial standings

Company Name

Financial results(Mio. USD)

Financial results(Mio. USD)

Financial results(Mio. USD)

Financial results(Mio. USD)

Financial results(Mio. USD)

Financial results(Mio. USD)

Company Name 20102010 20112011 20122012Company Name

GPW Losses GPW Losses GPW Losses12345678910111213141516171819202122232425262728293031323334353637383940

Rosgosstrah 2,690.26 619.11 3,161.98 1,325.69 4,012.43 1,317.89SOGAZ 1,736.12 221.39 2,207.24 847.75 2,804.75 908.02Ingosstrah 1,546.39 670.93 1,931.72 944.99 2,501.76 1,394.68RESO-Garantia 1,206.17 368.89 1,513.75 763.70 1,749.82 874.61Alfa Insurance 775.01 203.62 1,118.93 423.39 1,369.22 461.12Military Insurance Company 861.79 279.10 1,025.09 570.17 1,160.58 560.58Moscow Insurance Group 674.81 175.80 703.10 370.28 667.95 479.72MAKS 326.90 54.00 420.64 264.63 535.86 305.28Soglasie 556.92 154.66 908.52 419.51 1,155.85 588.10Renaissance Insurance Group 428.24 162.24 514.17 281.79 610.05 434.30VTB Insurance 185.06 34.13 315.59 69.84 768.94 208.93Uralsib Insurance Group 348.75 180.66 385.01 228.41 462.10 238.54Transneft 149.89 27.80 257.52 81.51 290.91 117.22Ugoria 332.43 85.91 266.08 189.86 289.52 204.38GUTA Insurance 169.35 59.42 236.42 106.65 265.14 110.11Energogarant 176.51 33.33 208.87 79.62 263.83 88.34Russian Insurance Center 105.05 18.61 106.65 20.74 103.70 45.69Pomosch Insurance Group (Giva) 52.00 5.22 72.77 7.41 87.01 11.11Surgutneftegaz 131.43 45.01 144.29 98.61 166.74 117.68BIN Insurance 98.49 38.37 98.74 54.76 99.79 57.42Chulpan 66.22 3.67 76.91 28.32 58.30 28.53NASKO 66.58 42.10 64.33 42.10 73.15 20.33Pari 45.09 8.71 56.45 15.28 63.89 16.05NPSK 31.69 12.72 47.42 25.86 48.61 13.47RegionSouz 17.96 3.30 22.71 5.22 30.07 6.49RegionGarant 24.65 3.58 29.15 4.86 36.71 7.42Megaruss D 80.63 18.43 81.19 31.32 73.49 28.31IBG 15.95 1.19 26.99 1.87 30.67 2.44Severnaya Kazna 25.75 7.02 60.42 20.68 86.11 26.00TIT 21.55 2.32 26.62 2.56 29.85 3.41OSK 30.44 8.08 43.16 19.61 61.59 25.79ASKO 41.53 7.97 49.04 30.33 62.14 34.31Euro-Polis 7.55 0.93 25.89 7.02 58.28 13.63KAMA RE 5.71 1.17 11.26 1.83 23.56 2.40Britanskiy Strahovoi Dom 18.52 2.52 21.97 3.33 41.37 3.96Spasskie Vorota 17.27 4.89 20.50 6.60 21.05 7.69ALROSA 14.50 1.18 17.35 7.17 21.28 7.82Rosles 12.43 3.70 13.99 5.73 14.32 13.33ZHASO Group 328.55 40.09 348.97 249.05 415.49 258.96National Insurance Group 80.24 13.41 104.77 26.28 116.98 27.69

*figures valid at 25 January 2013

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Russian market in terms of financial standings

Company NameRatingsRatingsRatingsRatingsRatings

Ownership StructureCompany Name National Agency

S&PS&P FitchFitch Ownership StructureCompany Name National Agency National International National International

Ownership Structure

12345678910111213141516171819202122232425262728293031323334353637383940

Rosgosstrah A++ AA- BB- (stable) Privately ownedSOGAZ A++ AA+ BBB- (stable) Gas companyIngosstrah A++ A++ BBB- (stable) Privately ownedRESO-Garantia A++ AA+ BB+ (stable) Privately ownedAlfa Insurance A++ A+ BB- (stable) Bank ownedMilitary Insurance Company A++ Privately ownedMoscow Insurance Group A+ AA- BB (stable) Bank ownedMAKS A++ Privately ownedSoglasie A+ Privately ownedRenaissance Insurance Group A++ Privately ownedVTB Insurance A++ AA+ BBB- (negative) Bank ownedUralsib Insurance Group A+ Bank ownedTransneft A++ AAA BBB (stable) Oil companyUgoria A+ Government ownedGUTA Insurance A+ Privately ownedEnergogarant A++ AA- BB- (stable) Privately ownedRussian Insurance Center A BBB B (stable) Privately ownedPomosch Insurance Group (Giva) A A- B (stable) Privately ownedSurgutneftegaz A+ Oil companyBIN Insurance A Bank ownedChulpan A+ Privately ownedNASKO A Privately ownedPari A+ Privately ownedNPSK n/a Privately ownedRegionSouz A Privately ownedRegionGarant n/a Privately ownedMegaruss D n/a Privately ownedIBG A Privately ownedSevernaya Kazna A Bank ownedTIT A+ Privately ownedOSK A Privately ownedASKO A Privately ownedEuro-Polis A Bank ownedKAMA RE A Privately ownedBritanskiy Strahovoi Dom B+ Privately ownedSpasskie Vorota A+ Privately ownedALROSA A+ Diamond companyRosles B++ Privately ownedZHASO Group A+ Railroad companyNational Insurance Group A Privately owned

*figures valid at 25 January 2013

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Inward reinsurance

123456789101112131415

Company nameGPW

(Mio. USD)Losses

(Mio. USD)Company name20102010

Ingosstrah 115.31 63.25Rosgosstrah 104.36 70.88SOGAZ 65.20 21.74Moscow Insurance Group 36.03 29.30Unity Re 34.07 11.19Soglasie 33.98 4.66Alfa Insurance 27.49 11.57Transib Re 26.08 16.71Military Insurance Company (VSK) 16.16 3.64RESO-Garantia 12.91 6.58Rosles 12.50 3.68TIT 8.75 1.04Energogarant 6.79 2.11Pomosch Insurance Group (Giva) 6.53 0.33Russian Insurance Center 5.13 5.61

123456789101112131415

20112011Ingosstrah 110.60 92.26SOGAZ 84.51 36.06Rosgosstrah 90.98 32.00Unity Re 42.77 8.71Moscow Insurance Group 39.68 17.71VTB Insurance 30.63 0.62Soglasie 26.67 13.89Transib Re 24.67 13.93Alfa Insurance 21.99 10.83Military Insurance Company (VSK) 21.99 10.83RESO-Garantia 17.50 4.13Rosles 15.90 6.23TIT 13.99 5.75Pomosch Insurance Group (Giva) 12.78 4.26KAMA RE 12.18 2.22

123456789101112131415

Company name first half of 2012first half of 2012SOGAZ 86.49 n/aIngosstrah 80.35 n/aRosgosstrah 61.06 n/aUnity Re 23.44 n/aSoglasie 14.15 n/aRESO-Garantia 13.66 n/aKAMA RE 12.54 n/aAlfa Insurance 11.22 n/aMilitary Insurance Company (VSK) 10.17 n/aPomosch Insurance Group (Giva) 6.89 n/aRosles 6.35 n/aTransneft 6.08 n/aTIT 6.78 n/aEnergogarant 4.72 n/aVTB Insurance 3.71 n/a

Liability risks

12345678910

Company name GPW(Mio. USD)

Losses(Mio. USD)

Company name

20102010Ingosstrah 95.70 29.31SOGAZ 79.35 2.77Rosgosstrah 73.50 8.51Military Insurance Company (VSK) 47.45 4.82RESO-Garantia 30.17 5.22Alfa Insurance 29.52 2.40Pomosch Insurance Group (Giva) 22.89 0.09Soglasie 22.37 1.27Russian Insurance Center 20.70 0.51Spasskie Vorota 13.49 1.16

12345678910

20112011Rosgosstrah 118.26 16.61Ingosstrah 102.03 26.94Alfa Insurance 59.64 5.10SOGAZ 56.61 6.19Military Insurance Company (VSK) 50.23 6.52RESO-Garantia 40.79 8.16Soglasie 27.30 2.48Pomosch Insurance Group (Giva) 23.29 0.09Russian Insurance Center 18.12 2.44Moscow Insurance Group 18.12 1.99

12345678910

first half of 2012first half of 2012Rosgosstrah 100.87 18.10Ingosstrah 92.70 30.13SOGAZ 56.02 2.28Alfa Insurance 52.71 9.28Military Insurance Company (VSK) 38.31 8.85RESO-Garantia 34.46 7.69Soglasie 24.14 2.83Moscow Insurance Group 16.16 2.78VTB Insurance 11.39 0.45Britanskiy Strahovoi Dom 10.67 0.00

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Marine risks

12345678910

Company nameGPW

(Mio. USD)Losses

(Mio. USD)Company name20102010

Ingosstrah 27.65 16.61Military Insurance Company (VSK) 16.64 9.29Rosgosstrah 15.22 24.46RESO-Garantia 13.06 7.66SOGAZ 8.98 12.23Russian Insurance Center 5.64 0.09Alfa Insurance 2.68 1.16Soglasie 2.68 1.54VTB Insurance 2.67 0.54Ugoria 2.55 2.64

12345678910

20112011Ingosstrah 30.71 15.94Military Insurance Company (VSK) 14.83 10.09Rosgosstrah 14.70 8.09RESO-Garantia 13.74 8.75Soglasie 11.70 3.05SOGAZ 9.60 8.79Alfa Insurance 3.35 1.71Russian Insurance Center 2.97 0.21Renaissance Insurance Group 2.97 2.95Ugoria 2.97 1.61

12345678910

first half of 2012first half of 2012Ingosstrah 23.96 7.82Rosgosstrah 20.27 5.36SOGAZ 14.62 3.95RESO-Garantia 11.96 7.90Soglasie 11.69 0.72Military Insurance Company (VSK) 9.36 6.58Russian Insurance Center 7.90 1.21Alfa Insurance 4.45 4.08Renaissance Insurance Group 2.79 3.86Ugoria 1.92 0.74

Cargo risks

12345678910

Company nameGPW

(Mio. USD)Losses

(Mio. USD)Company name20102010

Rosgosstrah 43.23 1.46SOGAZ 42.72 2.51Soglasie 34.73 1.13Ingosstrah 26.43 5.31Military Insurance Company (VSK) 21.87 0.18BIN Insurance 18.04 0.17Pari 13.26 2.52Military Insurance Company 12.35 2.88Russian Insurance Center 11.71 2.51Renaissance Insurance Group 11.46 1.96

12345678910

first half of 2012first half of 2012Rosgosstrah 54.15 13.81SOGAZ 40.80 3.22National Insurance Group 23.19 0.20Ingosstrah 22.66 13.81Pari 15.00 2.54Alfa Insurance 12.93 4.60RegionGarant 12.05 0.05RESO-Garantia 11.15 4.04Military Insurance Company (VSK) 11.01 2.87Soglasie 8.81 1.77

12345678910

20112011Soglasie 58.23 1.59SOGAZ 53.22 5.70Rosgosstrah 49.50 1.89National Insurance Group 28.02 0.22Ingosstrah 26.12 8.82Pari 19.16 3.26Alfa Insurance 16.90 4.28RESO-Garantia 15.62 2.02Military Insurance Company (VSK) 14.18 2.18RegionGarant 14.18 0.00

1234567891011121314151617

Company name

GPW(Mio. USD)

Losses(Mio. USD)Company name

20102010Rosgosstrah 1,563.12 619.11SOGAZ 996.71 221.39Ingosstrah 982.94 670.93RESO-Garantia 705.45 368.89Military Insurance Company540.93 279.10Alfa Insurance 439.90 203.62Soglasie 380.76 154.66Renaissance Insurance Group263.90 162.24Moscow Insurance Group332.99 175.80Uralsib Insurance Group 191.27 180.66Ugoria 154.17 85.91MAKS 116.41 54.00GUTA Insurance 115.76 59.42Energogarant 100.98 33.33VTB Insurance 100.98 34.13Russian Insurance Center 99.25 18.61Transneft 84.40 27.80

1234567891011121314151617

20112011Rosgosstrah 1,617.86 619.73Ingosstrah 1,289.33 658.84SOGAZ 1,160.25 258.36RESO-Garantia 947.26 432.71Military Insurance Company616.41 373.36Alfa Insurance 601.51 246.46Soglasie 600.18 251.58Moscow Insurance Group359.35 199.02Renaissance Insurance Group322.57 198.56Uralsib Insurance Group 322.57 123.61Ugoria 204.15 114.67MAKS 201.58 61.65GUTA Insurance 161.40 74.27Transneft 144.38 19.40Energogarant 126.05 40.22VTB Insurance 113.09 44.79Russian Insurance Center112.39 13.81

1234567891011121314151617

first half of 2012first half of 2012Rosgosstrah 1,385.57 438.03SOGAZ 1,247.88 175.31Ingosstrah 1,135.94 777.10RESO-Garantia 794.40 397.55Alfa Insurance 563.19 184.05Soglasie 534.42 271.06Military Insurance Company445.17 252.25Renaissance Insurance Group285.86 256.59Moscow Insurance Group260.01 197.72Uralsib Insurance Group173.48 98.37Ugoria 127.84 98.85Transneft 118.10 34.45VTB Insurance 118.05 61.75GUTA Insurance 109.29 53.63Energogarant 100.17 36.35MAKS 95.07 60.24National Insurance Group59.25 10.93

Property risks

! ! page 9

Over the past twelve years the Russian insurance & reinsurance market has become a mature, well-managed and regulated part of Russian economic life. In 2012 more then 10 bn USD have been paid by Russian companies to their clients both locally and abroad. Russian Insurers have accumulated a unique experience of handling all types of losses - marine, space, engineering, property, power generation, aviation, CAT. Due to the vast territory of Russia and different types of climate zones our surveyors know how to deal with losses in tundra, the desert, mountains or even within conditions of permanent frozen ground. Below you will see a brief overview of some of the losses paid by the Russian market in the past twelve years, believe us - this is just a small number of them - for a more in-depth analysis we would need much more time and space than this presentation allows us. In any case we would be delighted to answer any questions you may have or supply you particular details on any of the mentioned losses.

2012USD 38.5 Mio - total loss of a Russian space satelliteUSD 5.2 Mio - agriculture loss in RussiaUSD 2 Mio - CAT loss in North Korea

2011USD 28.7 Mio - loss of AN-148 aircraftUSD  70 Mio - total loss of a Russian space satelliteUSD 2.3 Mio - agriculture loss in Russia

2010USD  1.5 Mio - explosion at metal producing plant in UkraineUSD  2.2 Mio - loss of an Indonesian space satelliteUSD  200 Mio - loss on a hydro plant in RussiaUSD 70 Mio - loss as a r e s u l t o f a n earthquakeUSD  35 Mio - loss at new power plantUSD  100 Mio - loss at meat producing plantUSD  2.5 Mio - helicopter crash

2009USD 34.2 Mio - partial loss of a Russian space satelliteUSD 16.4 Mio - loss of an Аirbus 310-324USD 10 Mio - loss due to fire at logistic center in RussiaUSD 10 Mio - agriculture loss in Russia

2008USD 3.5 Mio - marine lossUSD 2.7 Mio - marine lossUSD 2.2 Mio - marine lossUSD 3 Mio - cash in transit

2007USD  315.4 Mio - explosion at metal producing plant in RussiaUSD  12.2 Mio - total loss of a Russian space satellite

2006USD 75 Mio - loss due to fire at logistic center in RussiaUSD  4.4 Mio - total loss of a Russian space satellite

2005USD 2.5 Mio - marine loss

USD 2 Mio - damage of the Boeing 767 aircraft

2004USD 1.2 Mio - marine lossUSD 1.1 Mio - marine lossUSD 1 Mio - marine loss

2003USD 1.1 Mio - marine lossUSD 0.9 Mio - cargo loss

2002USD 9 Mio - CAT event in PeruUSD 7 Mio - explosion at metal producing plant in Russia

2001USD 1 Mio - fire in a shopping center

2000USD  12.2 Mio - total loss of a Russian space satelliteUSD 9 Mio - loss during construction of an irrigation systemUSD 1.9 Mio - loss during construction of a business center

MAJOR RUSSIAN INSURANCE LOSSES

Max lossover 315 million US

Dollarsas a result of explosion on a metal producing

plant

GLINSO OVERSEASGLINSO Insurance Brokers started

overseas activities since early 2011, one and a half year after incorporation.

Today we are working with over one hundred fifty companies capable to deal with inward reinsurance. We have strong partnership relations with over 30 countries, and are proud to add - with no overdue claim payments.

We are very happy with our positive working experience with Russian, Indian, African, Chinese reinsures.

Where traditional markets find some types of business unworthy of their time, Russians enjoyed a trustworthy profitable business for the last years. Selective marine

risks from South-East Asia is a great example.

The markets which were treated outsiders 20 years ago are strong competitors to Europe or London now. We believe a worldwide force in whole insurance industry is by far greater then classic scheme to secure all the business in a limited number of the usual big companies.

Diversification is a must for insurance business itself enforcing the effect of large numbers. And history shows diversification is strongly r e q u i r e d n o t o n l y f o r mathematical reasons, but for political risks also.

We are also very interested in additional high level capacity which non-classical overseas Reinsurers can surely provide.

We are hoping for a very positive, strong and longterm cooperation with the market and hope our suggestions will be taken into account.

Diversificationis a must for insurance business itself enforcing the effect of large numbers law.

Over 30 partner

countries

GLINSO REINSURANCE MARKET REVIEW21 Noviy Arbat str., Office 1233Moscow, 119019, Russia