State Unitary Enterprise Belarusian National Reinsurance Organization WORKING WITH US YOU WORK WITH...

State Unitary Enterprise“Belarusian National Reinsurance Organization”

WORKING WITH US YOU WORK WITH ENTIRE COUNTRY

FEATURES OF BELARUSIAN INSURANCE MARKET

Belarusian Insurance market participants as at October 1, 2010 are: 25 operating companies (21 of which perform

non-life insurance, including 1 organization ─ reinsurance only, 4 ─ life insurance) and 4 insurance brokers.

BELARUSIAN NATIONAL REINSURANCE ORGANIZATION

Achieving Success Together

There are four state-owned companies in the market (BELGOSSTRAKH, BELARUSIAN NATIONAL REINSURANCE ORGANIZATION, EXIMGARANT OF BELARUS, STRAVITA) and four companies have effective state participation of more than 50% (BELKOOPSTRAKH, BELNEFTESTRAKH, PROMTRANSINVEST,TASK).

The total net worth of Belarusian insurance companies as at October 1, 2010 made EUR 500,0 m.

ORGANIZATION ESTABLISHMENT

The founder of Belarusian National Reinsurance Organization is the Council of Ministers of the Republic of Belarus.

As at October 1, 2010, the organization’s authorized fund and net worth made EUR 114,6 m and EUR 117,3 m respectively.



State Unitary Enterprise “Belarusian National Reinsurance Organization” was established by the resolution of the Council of Ministers of the Republic of Belarus as of November 4, 2006 No.1463 “On Establishment of Belarusian National Reinsurance Organization” in accordance with the Decree of President of the Republic of Belarus dated as of August 25, 2006 No.530 “On Insurance Operations” and is subordinated to the Ministry of Finance.

PLACE AND ROLE on Belarusian Insurance Market

BELARUSIAN NATIONAL REINSURANCE ORGANIIZATION


Legislation of the Republic of Belarus provides a number of actions aimed at regulation of reinsurance activity in the country:

•Since 1 January 2010, transfer 50% of the undertaken liabilities under each contract of voluntary non-life insurance, exceeding legislative standard of liability, to Belarusian National Reinsurance Organization;

• Belarusian National Reinsurance Organization is the sole company which cooperates with foreign insurance and reinsurance organizations on placing risks insured on the territory of the Republic of Belarus;

•The implementation of coordinated with Belarusian National Reinsurance Organization tariff policy upon conclusion of large risks insurance contracts, where liability exceeds stated by law amount of liability.

STRATEGY



Strategic goal: creation of an international reinsurance company, offering a full range of reinsurance services and

providing its clients with comprehensive protection according to international standards.

Activities to achieve the goal: • further development of cooperation with insurance companies of the Republic of Belarus, including acceptance of liability not requiring obligatory reinsurance;

• development of cooperation with insurance and reinsurance companies in the CIS and Western Europe market;

• improvement of the organizational structure, as well as implementation of advanced technologies and methods in the field of Underwriting;

• implementation of effective investment policy;

• creation of favourable conditions for professional growth and creativity of employees.

CORE FIGURES



POSITION 2007 2008 2009 2010

9 months

Number of contracts 2 047 4 503 4 741 3 754

Premium written, EUR ‘000 1 886,9 7 682,8 12 513,3 13 466,6

Premium received, EUR ‘000 1 074,9 7 239,1 11 075,5 11 327,9

Premium ceded, EUR ‘000 296,1 4 000,9 6 920,1 6 303,9

Payments, EUR ‘000 376,4 1 854,7 2 576,5 1 365,3

Liability accepted, EUR ‘000 000 1 997,6 9 307,3 17 984,1 15 525,7

Actuarial reserves, EUR ‘000 458,5 1 345,1 1 578,1 3 765,5

Authorized fund, EUR ‘000 17 254,9 110 042,6 112 245,5 114 581,1

Net worth, EUR ‘000 18 200,0 111 325,5 114 966,8 117 273,1

Net profit, EUR ‘000 974,7 1 329,8 2 712,5 2 138,6

Number of Contracts



13 59 101 97 95 150225

445329

203 188 111117

215273

300401

1073

818

1045

1255

1385

12151194 1174 1158

1151

1718

1qt. 2007

2 qt. 2007

3 qt. 2007

4 qt. 2007

1 qt. 2008

2 qt. 2008

3 qt. 2008

4 gt 2008

1 qt. 2009

2 qt. 2009

3 qt. 2009

4 qt. 2009

2qt. 2010

3 qt. 2010

Contracts of Reinsurance

Contracts of Retrocession

Reinsurance Premium



1074,9296,1

7239,1

4000,9

11075,5

6920,1

11327,9

6303,9

0

2000

4000

6000

8000

10000

12000

14000

2007 2008 2009 9 months 2010

Reinsurance premium accepted(EUR'000)

Reinsurance premium ceded(EUR'000)

Amount of Liability

1 997,60

1 401,10

9 307,38 795,4

17 984,7

10 248,6

15 525,7

12 962,0

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

2007 2008 2009 9 months2010

Amount of Liability Accepted(EUR'000 000)

Amount of Liability Ceded(EUR'000 000)


BELARUSIAN NATIONALREINSURANCE ORGANIZATION

PERFORMANCE for 9 months 2010Inwards Reinsurance Portfolio

Lines of Business

Aviation Risks Reinsurance

29,2%

Property Reinsurance10,3%

"Green Card" Liability Reinsurance

15,6%Cargo Reinsurance

4,6%

Liability against Customs Authorities

Reinsurance 5,5%

Land transport Reinsurance

4,0%

Financial Risks Reinsurance

15,3%

Others 15,5%



Facultative66,5%

Treaty 33,5%



Voluntary79,2%

Compulsory20,8%

PERFORMANCE for 9 months 2010Inwards Reinsurance Portfolio

Classes & Forms of Reinsurance

INWARDS REINSURANCE TREATIES9 months 2010

BERLARUSIAN NATIONAL REINSURANCE ORGANIZATION


Moscow Re (property, engineering risks)

Ingosstrakh (property, engineering risks)

Ingosstrakh (aviation hull, liability)

M.S. Pritchard Esquire (catastrophe)

AlfaInsurance (aviation hull, liability)

Transsib Re (liability, accidents)

Nakhodka Re (property, engineering risks)

Kapital Insurance (aviation hull, liability)

Kapital Reinsurance, Kapital Insurance (property, engineering risks)

Unity Re (property, engineering risks)

BTA AAS Latvia (liability)

BTA Draudimas UAB (liability)

PERFORMANCE for 9 months 2010Outwards Reinsurance Portfolio

Lines of Business

BELARUSIAN NATIONALREINSURANCE ORGANIZATION

Aviation Risks; 42,9%

"Green Card" Liability

Reinsurance; 21,0%

Property Reinsurance; 6,6%

Cargo Reinsurance; 6,2%

Liability against Customs

Authorities Reinsurance; 6,4% Others; 16,9%



Participants



Lloyd's Syndicates30,3%

Other14,7%

Chartis Ltd12,6%

Munich Re9,7%

Ingosstrakh8,6

Partner Re4,3%

Hannover Re3,6%

Allianz GroupCompanies

3,7%

Belarusian insurance companies

2,8%

Other insurance,reinsurance

companies ofRussian Federation

2,5%Swiss Re

2,7%Amlin3,2% SCOR

1,3%


Financial Strength Rating



From ААА to А(High rating level)

74,5%

From ВВВ to В(Medium rating level)

22,7%

NR(Not rated)

2,8%

AVIATION RISKS



Since 2007 Belarusian National Reinsurance Organization has been providing aviation risks reinsurance, including risks of national air carriers: Belavia - Belarusian National Airline and Transaviaexport Cargo Airline.

Sums insured under reinsurance contracts: Aviation hull – up to USD 44,2 m Airline liability – USD 300 - 750 m National carriers’ air fleet: Boeing 737-500 (6 Aircraft), Boeing 737-300 (3 Aircraft), CRJ-100/200 LR (3 Aircraft), Тu-154 (4 Aircraft), Il-76 TD (6 Aircraft).

Risks are placed on facultative quota share basis.

Foreign placing broker – Willis Limited (UK)

Retrocessionaires: Lloyd’s Syndicates (UK), Munich Re (Germany), Allianz Global Corporate&Specialty AG (Germany), Swiss Re Frankona Rückversicherung AG (Germany), AIG UK Ltd (UK), Aspen Insurance (UK), Liberty Mutual Insurance Europe Ltd (UK), Generali IARD (France), Aviabel S.A., Brussels (Belgium), Ingosstrakh (Russian Federation).

“GREEN CARD”



Since 1 June 2007, the Republic of Belarus is a full member of the international “Green Card” system.

Belarusian National Reinsurance Organization places in reinsurance “Green Card” Belarusian Certificates since 2008.

Since 2010, net retention of the national insurance market under the “Green Card” Belarusian Certificates Reinsurance Contract has been increased from EURO 260 000 to 500 000.

The Leading Reinsurer of “Green Card” Belarusian Certificates is Partner Re with the cooperation of such companies as Munich Re, Hannover Re, SCOR, Polish Re, Sava Re, Aspen Insurance UK, Everest Re, QBE Insurance, Lloyd’s syndicates.

Belarusian National Reinsurance Organization participates in reinsurance of “Green Card” Belarusian Certificates on the first and the second layers of treaty reinsurance.

Estimated premium income of Belarusian insurance companies in 2010 under the “Green Card” Belarusian Certificates Insurance Contracts is EURO 15 300 000.

REINSURANCE within TIR CONVENTION 1975



Quota Share Reinsurance and Retrocession Contract was concluded under which State Unitary Enterprise “Belarusian National Reinsurance Organization” reinsures 65% of liability, having 15% of net retention and placing via broker company R.L. Davison & Co Ltd. 50% in Lloyd’s syndicates.

Property and Engineering RisksExcess of Loss Reinsurance



The limit of the treaty is USD 15 m

The Leader is SCOR

The placing broker is Société de Courtage Re Ltd Insurance Broker.

The net retention is USD 1,5 m

The coverage is provided on three layers: 1 layer – USD 2,0 m in excess of USD 1,5 m 2 layer – USD 5,0 m in excess of USD 3,5 m 3 layer – USD 6,5 m in excess of USD 8,5 m

The territorial scope is the Republic of Belarus and Belarusian interests abroad, other areas under Leader’s special acceptance.

MAJOR LOSSES



“Trans Pacific" General Average - 30 January 2008 due to vessel grounding.The amount of Indemnity paid by Belarusian National Reinsurance Organization – USD 245 376.

Total loss of CRJ-100LR Aircraft while taking off – 14 February 2008 in Zvarnots airport, Armenia. The amount of Indemnity paid by Belarusian National Reinsurance Organization – USD 1 960 000.

Oil-Products pipeline breaking “Unecha-Rovno”– 14 February 2008There occurred leakage of the oil product, that got in flood-plain basin of the river Dnieper. The damage to the environment was caused.The amount of Indemnity paid by Belarusian National Reinsurance Organization – USD 156 698.

Loss of cargo – August 31, 2009 in Paris Gudang Port (Malaysia). Belarusian National Reinsurance Organization paid USD 469 593,39 on loss of cargo of CJSC “Belarusian Potash Company”.

MAXIMUM RETENTION LIMITS*


Achieving Success Together*Limits of liability on each and every contract may vary from the above-mentioned subject to risk exposure

Class of BusinessFacultative Reinsurance,

Gross Retention, USD

Treaty Reinsurance,

Net Retention, USD

Commercial Property 15 000 000 2 000 000

CAR/EAR 15 000 000 2 000 000

Cargo 2 000 000 2 000 000

Aircraft (per each aircraft) 1 000 000 500 000

Spacecraft launch 500 000 500 000

Orbital maintenance of spacecraft 500 000 500 000

Land transport (per each vehicle) 300 000 300 000

Civil liability of aircraft owners 6 000 000 6 000 000

TPL 5 000 000 5 000 000

Civil liability for spacecraft launch / orbital maintenance of spacecraft 5 000 000 5 000 000

Civil liability of hazardous organizations 1 500 000 1 500 000

Civil liability of carrier and forwarder 1 000 000 500 000

BELARUSIAN NUCLEAR INSURANCE POOL

• On 5 March 2009, under the guidance of Belarusian National Reinsurance Organization there was created Belarusian Nuclear Insurance Pool, the aim of which is the insurance of risks in relation to engineering, construction and operation of NPP, as well as reinsurance of Belarusian and foreign nuclear risks.

• Participants of Belarusian Nuclear Insurance Pool are 6 companies and out of these 2 – state companies (Belgosstrakh, Eximgarant of Belarus), 4 – with state participation of more than 50% (Belkoopsrakh, Belneftestrakh, PromtransInvest, TASK). The Leader is Belgosstrakh. Belarus Re provides reinsurance protection.

• By now there have been concluded reinsurance contracts with Ukrainian Nuclear Insurance Pool on risks of NAEC ENERGOATOM, and with Russian Nuclear Insurance Pool on risks of OJSC Energoatom Concern.



RATING



In August 2007, an international rating agency Standard & Poor’s assigned long-term credit rating in foreign currency to the Republic of Belarus which is “B+”. In January 2009, this rating was confirmed.

Standard & Poor’s also emphasizes the economy of the Republic of Belarus is one of the wealthiest and most developed among countries of the B+ category.

On April 23, 2010 Standard & Poor’s Rating Services assigned its “BB-” counterparty credit and financial strength ratings to Belarusian National Reinsurance Organization (Belarus Re).

The outlook – Negative. The ratings reflect Standards & Poor’s view of Belarus Re’s adequate capitalization, competitive advantages on Belarusian reinsurance market and high probability of extraordinary government support in the event of financial distress.

OUR PARTNERS

The Republic of Belarus

Belgosstrakh, PromTransInvest, Eximgarant of Belarus, Belneftestrakh, TASK, Belkoopstrakh, B&B Insurance Co, Belvneshstrakh, Belingostrakh, Belrosstrakh, Victoria, Garantia, Generali, Delta Insurance, KENTAVR, Kupala, BAGACH, ZEPTER INSURANCE, ERGO.

FOREIGN COMPANIES

Russian Federation: Ingosstrakh, SOGAZ, Kapital Reinsurance, Moscow Reinsurance Company, AlfaInsurance and other companies.

Other countries: Lloyd’s syndicates (UK), Munich Re, Hannover Re (Germany), Amlin Corporate Insurance (UK), SCOR (France), Partner Re (Switzerland), Polish Re (Poland), Allianz Group, Vienna Insurance Group (Austria), CHARTIS (China), Korean Re (South Korea).

Broker companies: Willis Limited (UK), R.L.Davison & Co Ltd (UK), Filhet- Allard Maritime (France), MALAKUT (Russia), “MARSH” – insurance brokers (Russia) and other companies.

Belarus Re cooperates with more than 70 companies from 17 countries.



CONTACT INFORMATION



STATE UNITARY ENTERPRISE“BELARUSIAN NATIONAL REINSURANCE ORGANIZATION”

Minsk, Republic of Belarus14, Chkalov St.220039

E-mail: [email protected]: www.belarus-re.com

Director General: tel./fax: (+375 17) 256 07 11

Reinsurance Division: tel.: (+375 17) 256 04 11fax: (+375 17) 256 05 77

Business Development, International Cooperation & Advertising Department: tel.: (+375 17) 256 06 38

mailto:[email protected]

State Unitary Enterprise Belarusian National Reinsurance Organization WORKING WITH US YOU WORK WITH...

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