eastern reinsurance company

EASTERNREINSURANCE COMPANY

Russian reinsurance marketResults of 2009

EASTERN REINSURANCE COMPANY

Specialized Reinsurers volume decreasing 40%

Universal Insurance companies volume decreasing 10%

2009 Incoming Reinsurance

RUR 42.996 bln. =

RUR 53.592 bln. =

2008

2009

USD 1.786 bln.

USD 1.433 bln.

Written premium in 2008 - 89% of lost volumes in 2009

Lost volumes in 2009

Reinsurers decreasing premium in 2009 7%

2009 Incoming Reinsurance

RUR 7.000 bln. =

RUR 6.130 bln. =

2008

2009

USD 204.0 mln.

USD 235.0 mln.

Universal Insurance companies 76%

Specialized reinsurers 24%

2009 Incoming Reinsurance

RUR 10.215 bln. =

RUR 32.781 bln. =

USD 1.093 bln.

USD 340.5 mln.

Russia 76%

Non-resident 24%

2009 Incoming Reinsurance

RUR 10.122 bln. =

RUR 32.873 bln. =

USD 1.960 bln.

USD 337.4 mln.

Paid losses in 2008

Paid losses in 2009 decreased by 44%

Specialized Reinsurers & Universal Insurers:

2009 Incoming Reinsurance

RUR 3.432 bln. =

RUR 6.128 bln. =

2008 2009

USD 204.0 mln.

USD 114.4 mln.

Specialized Reinsurers :

2008 RUR 16.821 bln. =

USD 560.71 mln.

2009 RUR 14.803 bln. =USD 493.43 mln.

Paid losses in 2008Paid losses in 2009 decreased by 12%

Paid losses in 2008

Paid losses in 2009 increased by 6.2%

2009 Incoming Reinsurance

RUR 11.371 bln. =

RUR 12.122 bln. =

USD 404.06 mln.

USD 379.0 mln.

Universal Insurers:

2008

2009

Loss ratio of Specialized Reinsurers decreased by 2 p.p. up to 33.6%

Loss ratio of Universal Reinsurers increased by 5.3 p.p. up to 34.7%

2009 Incoming Reinsurance

2009 : volume of premium decreased by 3 p.p. up to 34.4%

Premium transmitted in reinsurance

420 Universal Insurance companies - 95%

24 Specialized Reinsurers - 5%

Total written premium of Insurance

2009 Outgoing Reinsurance

RUR 977.53 bln. =

RUR 97.363 bln. =

2009

2009

USD 3.245 bln.

USD 32.584 bln.

RUR 92.652 bln. =

USD 3.088 bln. RUR 4.711 bln. =

USD 157.0 mln.

Premium transmitted abroad 56%

Premium transmitted into Russia 44%

2009 Outgoing Reinsurance

RUR 42.915 bln. =

RUR 54.499 bln. =

USD 1.816 bln.

USD 1.430 bln.

Motor: increasing from 32% to 37%

Dangerous Enterprises Owners Liability: increasing from 54% to 59%

Rest kinds: increasing by 1-2%

Motor TPL: increasing from 19% to 27%

2009 Outgoing Reinsurance

Compensation paid by Russian reinsurers RUR 23.343 bln. = USD 778.1 mln.

24% of transmitted premium

Compensation paid by foreign reinsurers RUR 11.934 bln. = USD 397.8 mln.

22.9% of transmitted abroad premium

2009 Outgoing Reinsurance

Number of companies providing incoming reinsurance

Including 24 specialized Reinsurers

2009 Statistics

176

191

2008

2009

Total number of insurance companies

Insurance companies providing outgoing reinsurance (66-67%)

2009 Statistics

464

702 (693)

2009

2009

Current requirements: RUR 30.0 mln. = USD 1.0 mln.

Expected: RUR 120.0 mln. = USD 4.0 mln.

Conversion rates:

Property insurance - 1 RUR 120.0 mln. = USD 4.0 mln.

Life insurance - 2 RUR 280.0 mln. = USD 8.0mln.

Reinsurance - 4 RUR 480.0 mln. = USD 16.0 mln.

Less than RUR 120.0 mln. = USD 4.0 mln. - 55%

Market share – 7%

RUR 480.0 mln. = USD 16.0 mln. - 11%

Market share – 78%

2009 Statistics

Contacts

Moscow Office:

Building 1, 11/10 Letnikovskaya Str., Moscow, 115114, Russia

Tel/fax: +7 (495) 926-78-81, 926-72-20 e-mail: vpk@vpkre.ru

www.vpkre.ru

EASTERN REINSURANCE COMPANY