James Grindley - CEOIstanbul, 28th March 2011

CertAsig and Marine Underwriting in Turkish Market

Who is CertAsig?

• CertAsig is a specialist, non-life insurance company licensed by the Romanian Insurance Supervisory Commission (CSA)

• Ultimate investors include: European Bank for Reconstruction & Development (EBRD) & European Investment Fund (EIF)

• Our business model is to work primarily with insurance brokers and to target corporate SME clients

• CertAsig focuses on ‘more technical’ and specialist insurance products

• Avoid chasing market share – a common strategy of ‘top 10’ insurers in Romania

• Romania is our core market but expansion to other CEE countries will be considered carefully - Turkey is already an important market for marine

• CertAsig team includes 45 insurance professionals with 6 offices – the team is dedicated to brokers and clients

• CertAsig intends to obtain a rating from a market-respected rating agency

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Shareholder structure

• Majority owner (92%) of CertAsig is European private equity fund Royalton Capital Investors II (“RCI II”), managed by Royalton Partners

• Main investors in RCI II are:

• European Bank for Reconstruction & Development (EBRD)• European Investment Fund (EIF)• Various pension funds & other banks• CertAsig Management

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Specialist products

Commercial & Industrial Property Insurance (All Risks with optional Business Interruption)Construction, Plant & Machinery InsuranceMotor CASCO InsuranceElectrical Equipment InsuranceContractors All Risks (CAR)Bond Insurance General Third Party Liability, Employer’s Liability Professional LiabilitiesGoods in transit / cargoMarine Insurance (ships, vessels, hull& machinery, Protection & Indemnity) General Aviation Insurance (private jets, helicopters)Medical mal-practiceEvent insuranceHealth InsurancePersonal Accident InsuranceHousehold insurance (buildings, contents & liabilities)

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Evolution of portfolio by Gross Written Premium

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Marine Insurance is a broker-driven market

Ship-owners and managers generally use specialist brokers to obtain insurance

Marine insurance brokers earn commissions between 15% to 25% of Gross Written Premium

Leading insurers for Turkish market include:

Turkish insurers Lloyd’s Syndicates & London market Russian & European insurers

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Marine products and underwriting criteria for Turkey

Products

Hull and Machinery for blue and brown water vessels

Protection and Indemnity for small and medium vessel (big oil tankers excluded)

Builder’s risks

Ship repairers’ liability

Pleasure crafts

Port authority / operator liability

Cargo / fine art

Specie and cash in transit

Cargo liability (CMR)

Marine Business

Underwriting Criteria

All vessels underwritten on a case-by-case basis; underwriting authority is never delegated

Bucharest and Constanta offices are active in selling marine business

Background / experience of operator, skipper (yacht insurance), shipyard, ship repairer, are checked before quoting

Core target business is CEE, Turkey, Black Sea-domiciled managers / operators / owners but all European managed vessels considered

Pre-entry condition survey is required for vessels older than 10 years, rendered by underwriters’ agreed surveyors

Loss record for previous 3-5 years is required and checked; tighter terms and conditions or cover refused for business with high loss record

Terms and conditions used are similar to London wordings

Terms are calculated using benchmark London market indications, facultative reinsurance terms regularly obtained for comparison

Restrictive terms offered for over age vessels , Cl. 280 FPA ucb, Cl. 284 or Cl. 289 at underwriters’ discretion or higher additional machinery deductibles imposed

Fast response to brokers, usually same day – significant differentiator in the market

English law and jurisdiction is preferred; however local jurisdiction of original assured could be accepted

CertAsig is a quoting market with at least 80% of business underwritten 100%.

Reinsurance

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Key points

Security

Marine Reinsurance Programme is underwritten by:

Lloyd’s, Hannover Re, Flagstone Re & other reinsurers with rating of A- or better

Marine Hull, Protection & Indemnity, Cargo & General Aviation

Non-proportional excess of loss treaty

Capacity up to USD 10,000,000 (USD 9,750,000 xs USD 250,000)

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THANK YOU FOR YOUR ATTENTION !