State Unitary Enterprise “Belarusian National Reinsurance Organization” WORKING WITH US YOU WORK WITH ENTIRE COUNTRY

State Unitary Enterprise“Belarusian National Reinsurance Organization”

WORKING WITH US YOU WORK WITH ENTIRE COUNTRY

FEATURES OF BELARUSIAN INSURANCE MARKET

Insurance market participants are: 24 operating companies (20 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 1 October 2009 made EUR 454,9 m.

ORGANIZATION ESTABLISHMENT

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

As at 1 January 2010, the organization’s authorized fund and net worth made EUR 112,2 m and EUR 114,9 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 4 November 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 25 August 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 SUE “Belarusian National Reinsurance Organization”;

• SUE “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 SUE “Belarusian National Reinsurance Organization” tariff policy upon

conclusion of large risks insurance contracts, where liability exceeds net retention of insurance companies.

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 assumption of risk 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;

• international financial rating assignment;

• implementation of effective investment policy;

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

CORE FIGURES



POSITION 2007 2008 2009

Number of contracts2 047 4 503 4 741

Premium written, EUR ‘0001 886,9 7 682,8 12 513,3

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

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

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

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

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

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

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

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

PERFORMANCE for 2007─ 2009

Number of Contracts



13 59 101 97 95150

225

445329

203 188273

300

401

1073

818

1045

1255

1385

1215

1194 1174

111

1158

1qt.2007

2 qt.2007

3 qt.2007

4 qt.2007

1 qt.2008

2 qt.2008

3 qt.2008

4 gt2008

1 qt.2009

2 qt.2009

3 qt.2009

4 qt.2009

Contracts ofReinsurance

Contracts ofRetrocession

PERFORMANCE for 2007 – 2009

Reinsurance Premium



1074,9296,1

7239,1

4000,9

11075,5

6920,1

0

2000

4000

6000

8000

10000

12000

14000

2007 2008 2009

Reinsurance premiumaccepted (EUR'000)

Reinsurance premiumceded (EUR'000)

PERFORMANCE for 2007 – 2009 Amount of Liability

1 997,601 401,10

9 307,38 795,4

17 984,7

10 248,6

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

2007 2008 2009

Amount of Liability Accepted(EUR'000 000)

Amount of Liability Ceded(EUR'000 000)


BELARUSIAN NATIONALREINSURANCE ORGANIZATION

PERFORMANCE for 2009Inwards Reinsurance Portfolio

Lines of Business

Land transport Reinsurance

4,2%

Financial Risks Reinsurance

1,5%Others 13,5%

Liability against Customs Authorities

Reinsurance 7,0%

Cargo Reinsurance 7,8%

"Green Card" Liability Reinsurance

11,4%

Aviation Risks Reinsurance

36,5%

Property Reinsurance

18,1%



Facultative70,3%

Treaty 29,7%



Voluntary74,7%

Compulsory25,3%

PERFORMANCE for 2009Inwards Reinsurance Portfolio

Classes & Forms of Reinsurance

INWARDS REINSURANCE TREATIES 2009

BERLARUSIAN NATIONAL REINSURANCE ORGANIZATION


Moscow Re (property, CAR/EAR)

Ingosstrakh (aviation hull, liability)

M.S. Pritchard Esquire (catastrophe)

Avicos (aviation hull, liability)

Profile Re (property, CAR/EAR, cargo)

Afes (aviation hull, liability)

Transsib Re (liability, accidents)

Leader Re (property, CAR/EAR, liability)

PERFORMANCE for 2009 Outwards Reinsurance Portfolio

Lines of Business

BELARUSIAN NATIONALREINSURANCE ORGANIZATION

Others; 6,6%

Liability against Customs Authorities Reinsurance; 6,8%

Cargo Reinsurance; 11,4%

Property Reinsurance; 12,4%

Aviation Risks; 46,0%

"Green Card" Liability

Reinsurance; 16,8%


PERFORMANCE for 2009 Outwards Reinsurance Portfolio

Participants



Polish Re 1,0%

Others18,8%

Lloyd's Syndicates32,6%

Partner Re3,1%

Munich Re10,9%

Ingosstrakh7,5%

FORTIS (Amlin)

7,1%

Swiss RE 2,4%

Belarusian Insurance companies

3,9%

SOGAZ2,4%

Insurance & Reinsurance companies of Russian

Federation3,2%

Hannover Re4,9%

SCOR 2,2%

PERFORMANCE for 2009Outwards Reinsurance Portfolio

Financial Strength Rating



From ВВВ to В(Medium rating level)

13,3%

NR(Not rated)

4,4%

From ААА to А(High rating level)

82,3%

“GREEN CARD”



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

The insurance companies of the Republic of Belarus, that are entitled to enter into “Green Card” Belarusian Certificates Insurance Contracts, signed liability reinsurance treaty agreement under these contracts with SUE “Belarusian National Reinsurance Organization”.

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 Reinsurance, QBE Insurance and Lloyd’s syndicates.

The placing broker of Belarusian “Green Card” programme is “Beauchamp & Savrassov Limited”.

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

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 signed between Belarusian Insurance and

Reinsurance Companies and R.L. Davison & Co. Ltd. under which State Unitary Enterprise Belarusian

National Reinsurance Organization reinsures 65% of liability under the contract having 15% of net

retention and placing 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 Cooper Gay (Eastern Europe) Ltd.

The net retention of SUE “Belarusian National Reinsurance Organization” 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 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 2008The shipowner’s announcement about the general average related to vessel grounding to the east of Samso Island, Denmark, conducting the voyage from the port of Ventspils, Latvia, to the port of New Orleans, USA. The amount of Indemnity paid by SUE “Belarusian National Reinsurance Organization” – USD 245 376.

CRJ-100LR Aircraft Accident – 14 February 2008An accident, while taking off on February 14, 2008 at 00.19 (time UTC) of CRJ-100LR EW-101 PJ aircraft in Zvarnots, Yerevan airport, en route Yerevan-Minsk. There was a total loss of the aircraft.The amount of Indemnity paid by SUE “Belarusian National Reinsurance Organization” – USD 1 960 000.

Pipeline breaking while transporting oil products LPDSN9N-3P – 14 February 2008On 14 February, 2008, there occurred a rupture and leakage of the oil product, that got in flood-plain basin of the river Dnieper, at 422 km of the main oil pipeline LPDSN9N-3P “Unecha-Rovno”, operated by PUE “Zapad-Transnefteprodukt” The damage to the environment was caused.The amount of Indemnity paid by SUE “Belarusian National Reinsurance Organization” – USD 156 698.

Export- import risks – July-August 2009SUE “Minsk Tractor Works” and Belavto Ltd concluded an export contract for delivery of tractors to the Republic of Kazakhstan. The contractor’s insolvency led to the failure to comply with terms and conditions of the export contract in respect of payment.The amount of Indemnity paid by SUE “Belarusian National Reinsurance Organization” under short-,medium- and long-term exportcontracts against political and commercial risks made USD 1 039 230.

.

MAXIMUM RETENTION LIMITS*

Type of Reinsurance

Facultative

reinsurance,

Gross retention, USD, up to

Treaty

reinsurance,

Gross retention,

USD, up to

Property

Commercial Property 15 000 000 1 500 000

CAR/EAR 15 000 000 1 500 000

Non-commercial Property 15 000 000 1 500 000

Title Insurance 100 000 -

Aviation, Marine and Cargo

Aviation Hull 1 000 000 500 000

Aviation Liability 5 000 000 1 000 000

Marine Hull 1 000 000 500 000

Marine Liability 1 000 000 500 000

Cargo 1 500 000 500 000



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

Type of Reinsurance

Facultative reinsurance,

Gross retention,

USD, up to

Treaty

reinsurance,

Gross retention,

USD, up to

Motor Transport

Motor (per each vehicle)

Hull 300 000 150 000

TPL 100 000 50 000

Accident Reinsurance

Accident Insurance (sum insured per each the insured person) 250 000 100 000

Financial risks, Professional Indemnity Insurance

including:

Professional Liability 500 000 250 000

General Liability 500 000 250 000

Products Liability 500 000 250 000

FINANCIAL RISKS 500 000 250 000

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.

• Risks insurance is provided by 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 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 with stable budget tax and trade position of the country.

At present, State Unitary Enterprise “Belarusian National Reinsurance Organization” in cooperation with the

international rating agency Standard & Poor’s is carrying out all necessary work on the issue of financial strength rating assignment. Financial strength rating is planned to be assigned in the first half-year of 2010.

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 and other companies.

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

Broker companies: Willis Limited (UK), Beauchamp & Savrassov Ltd (UK), R.L.Davison & Co Ltd (UK), Cooper Gay (Eastern Europe) Ltd (UK), Filhet- Allard Maritime (France), MALAKUT (Russia) and others.

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 Department: 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]

Documents

State Unitary Enterprise “Belarusian National Reinsurance Organization” WORKING WITH US YOU WORK WITH ENTIRE COUNTRY