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Nominal GDP USD bn 109.32Population mil 42.3GDP Per Capita USD 2,583Real GDP Growth % 2.5Inflation Rate % 14.4

Literacy Rate % 99.8Urbanization % 70.1Dependency Ratio % 44.8Life Expectancy Years 72.1Median Age Years 40.6

Insurance Regulator

Premiums Written (Life) USD mil 110Premiums Written (Non-Life) USD mil 1,523Premiums Growth (2016 - 2017) % 8.6

UkraineBelarusKazakhstanPolandRussiaSlovenia

CRT-4CRT-2

Country Risk TierCRT-5CRT-5CRT-4CRT-2

Vital Statistics 2017

Insurance Statistics

Regional Comparison

National Commission for State Regulation of Financial Services

Markets

United Nations Estimates

Source: IMF, UN, Swiss Re, Axco and A.M. Best

Regional Summary: Eastern Europe•The Eastern European countries are at various stages of

bringing their legal, economic, and political frameworks to be more in line with European Union standards. The region has a great deal of economic potential, as it further integrates with the global markets of the European Union,butallofitscountrieswouldultimatelybenefitfrom more transparent and less cumbersome regulatory environments.

•Economic growth in 2017 was robust and is expected to continue in 2018 on growing domestic consumption, fueled by rising wage and falling unemployment rates. Additionally, funds provided by the EU’s Structural and Investment Funds will continue to drive public spending.

•AlthoughmanyEasternEuropeancountriesareclassifiedas emerging markets or frontier markets, reforms have enhanced economic stability and regional political power.

•Risks for the region include the potential for tightening globalfinancialconditionsandcurrencyvolatility.

Economic Risk Political Risk Financial System Risk

Country Risk Tier 1 (CRT-1) Very Low Level of Country Risk

Country Risk Tier 2 (CRT-2) Low Level of Country Risk

Country Risk Tier 3 (CRT-3) Moderate Level of Country Risk

Country Risk Tier 4 (CRT-4) High Level of Country Risk

Country Risk Tier 5 (CRT-5) Very High Level of Country Risk

UkraineCRT-5August 22, 2018Region: EuropeCountry Risk Criteria ProceduresGuide to Best’s Country Risk Tiers•TheCountryRiskTier(CRT)reflectsA.M.Best’s

assessment of three categories of risk; Economic, Political, and Financial System Risk.

•Ukraine, a CRT-5 country, has a high levels political risk andveryhighlevelsofeconomicandfinancialsystemrisk.

•The Russian-backed separatist movement in Eastern Ukraine and Crimea continues to threaten stability. However, the country returned to growth in 2016. GDP growth is forecast at 3.2% in 2018 and is expected to range between 3.0% and 4.0% over the medium term, with moderatinginflation.

•The majority of countries pictured are categorized as CRT-1 or CRT-2. Notable exceptions are the Eastern European countries of Bosnia and Herzegovina, Belarus, and Romania.

BEST’S COUNTRY RISK REPORT

Curacao

Cayman Islands Anguilla

BritishVirginIslands

St. Maarten

Zimbabwe

Zambia

Yemen Vietnam

Somoa

Venezuela

Vanuatu

Uzbekistan

Uruguay

United States

UnitedKingdom

U.A.E.

Ukraine

Uganda

TurkmenistanTurkey

Tunisia

Trinidad & Tobago

Tonga

Togo

Thailand

Tanzania

Tajikistan

Syria

Switzerland

Sweden

Swaziland

Suriname

Sudan

Sri Lanka

Spain

South Africa

Somalia

Solomon Islands

Slovenia

Slovakia

Singapore

SierraLeone

Serbia

Senegal

Saudi Arabia

Sao Tome & Principe

San Marino

St Vincent & the Grenadines St Lucia

St Kitts & Nevis

Rwanda

Russia

Romania

Qatar

PuertoRico

Portugal

Poland

Philippines

Peru

Paraguay

PapuaNew Guinea

Panama

Palau

Pakistan

Oman

Norway

Nigeria

NigerNicaragua

New Zealand

Netherlands

Nepal

Namibia

Mozambique

Morocco

MongoliaRepublic of

Moldova

Mexico

Mauritius

Mauritania

Malta

Mali

Malaysia

Malawi

Madagascar

Macedonia

Luxembourg

Lithuania

Liechtenstein

Libya

Liberia

Lesotho

Lebanon

Latvia

Laos

Kyrgyzstan

Kuwait

SouthKorea

NorthKorea

Kenya

Kazakhstan

Jordan

Japan

Jamaica

Italy

Israel

Ireland

Iraq Iran

India

Iceland

Hungary

Honduras

Haiti

Guyana

Guinea-Bissau Guinea

Guatemala

Grenada

Greenland

Greece

Ghana

Germany

Georgia

Gambia

Gabon

FrenchGuiana

France

Finland

Fiji

Falkland Islands

CanaryIslands

Azores

Reunion

Sumatra

Borneo

Taiwan

Sakhalin

Kuril Is

lands

NewGuinea

Tierra Del Fuego

South Georgia

Ethiopia

Estonia

Eritrea

Equatorial Guinea

El Salvador

Egypt

Ecuador

East Timor

DominicanRepublic

Dominica

Dijbouti

Denmark

CzechRepublic

Cyprus

Cuba

Croatia

Cote d'Ivoire

Costa Rica

Congo

Dem. Republicof Congo

Comoros

Colombia

China

Chile

Chad

Central AfricaRepublic

Cape Verde

Canada

Cameroon

Cambodia

Burundi

Myanmar

BurkinaFaso

Bulgaria

Brunei

Brazil

Botswana

Bosnia &Herzegovina

Bolivia

Bhutan

Benin

Belize

Belgium

Belarus

Barbados

Bangladesh

Bahrain

Bahamas

Azerbaijan

Austria

Australia

Armenia

Argentina

Antigua & Barbuda

Angola

Andorra

Algeria

Albania

Afghanistan

Western Sahara(Occupied by Morocco)

Montenegro

Isle of Man

Jersey

Guernsey

Monaco

Gibraltar

Seychelles

Russia

Hong KongMacau

Russia

Indonesia

Guam

Northern Mariana Islands

Wake Island

Marshall Islands

Federated Statesof Micronesia

Nauru

Tuvalu

CoralSeaIslands

New Caledonia

Norfolk Island

French Polynesia

Pitcairn Islands

Kiribati

Tokelau

AmericanSamoa

CookIslands

Niue

Curacao

Cayman Islands Anguilla

BritishVirginIslands

St. Maarten

Zimbabwe

Zambia

Yemen Vietnam

Somoa

Venezuela

Vanuatu

Uzbekistan

Uruguay

United States

UnitedKingdom

U.A.E.

Ukraine

Uganda

TurkmenistanTurkey

Tunisia

Trinidad & Tobago

Tonga

Togo

Thailand

Tanzania

Tajikistan

Syria

Switzerland

Sweden

Swaziland

Suriname

Sudan

Sri Lanka

Spain

South Africa

Somalia

Solomon Islands

Slovenia

Slovakia

Singapore

SierraLeone

Serbia

Senegal

Saudi Arabia

Sao Tome & Principe

San Marino

St Vincent & the Grenadines St Lucia

St Kitts & Nevis

Rwanda

Russia

Romania

Qatar

PuertoRico

Portugal

Poland

Philippines

Peru

Paraguay

PapuaNew Guinea

Panama

Palau

Pakistan

Oman

Norway

Nigeria

NigerNicaragua

New Zealand

Netherlands

Nepal

Namibia

Mozambique

Morocco

MongoliaRepublic of

Moldova

Mexico

Mauritius

Mauritania

Malta

Mali

Malaysia

Malawi

Madagascar

Macedonia

Luxembourg

Lithuania

Liechtenstein

Libya

Liberia

Lesotho

Lebanon

Latvia

Laos

Kyrgyzstan

Kuwait

SouthKorea

NorthKorea

Kenya

Kazakhstan

Jordan

Japan

Jamaica

Italy

Israel

Ireland

Iraq Iran

India

Iceland

Hungary

Honduras

Haiti

Guyana

Guinea-Bissau Guinea

Guatemala

Grenada

Greenland

Greece

Ghana

Germany

Georgia

Gambia

Gabon

FrenchGuiana

France

Finland

Fiji

Falkland Islands

CanaryIslands

Azores

Reunion

Sumatra

Borneo

Taiwan

Sakhalin

Kuril Is

lands

NewGuinea

Tierra Del Fuego

South Georgia

Ethiopia

Estonia

Eritrea

Equatorial Guinea

El Salvador

Egypt

Ecuador

East Timor

DominicanRepublic

Dominica

Dijbouti

Denmark

CzechRepublic

Cyprus

Cuba

Croatia

Cote d'Ivoire

Costa Rica

Congo

Dem. Republicof Congo

Comoros

Colombia

China

Chile

Chad

Central AfricaRepublic

Cape Verde

Canada

Cameroon

Cambodia

Burundi

Myanmar

BurkinaFaso

Bulgaria

Brunei

Brazil

Botswana

Bosnia &Herzegovina

Bolivia

Bhutan

Benin

Belize

Belgium

Belarus

Barbados

Bangladesh

Bahrain

Bahamas

Azerbaijan

Austria

Australia

Armenia

Argentina

Antigua & Barbuda

Angola

Andorra

Algeria

Albania

Afghanistan

Western Sahara(Occupied by Morocco)

Montenegro

Isle of Man

Jersey

Guernsey

Monaco

Gibraltar

Seychelles

Russia

Hong KongMacau

Russia

Indonesia

Guam

Northern Mariana Islands

Wake Island

Marshall Islands

Federated Statesof Micronesia

Nauru

Tuvalu

CoralSeaIslands

New Caledonia

Norfolk Island

French Polynesia

Pitcairn Islands

Kiribati

Tokelau

AmericanSamoa

CookIslands

Niue

Economic Risk: Very High•Several industries in Ukraine are still dominated by the

state. These state-owned enterprises dampen competition andincreaseinefficiency.Structuralreformswillbeneeded to improve the business environment and attract foreign investment.

•Russia’soccupationofCrimea,andtheongoingconflictinEastern Ukraine, has hurt economic growth. Because of continued Russian sanctions and new trading agreements, the EU has replaced Russia as Ukraine’s main trading partner, which should help the bolster economy.

•Challenges for Ukraine include the slow pace of reforms, persistentpoliticalinstability,double-digitinflation,ongoingarmedconflictinpartsofthecountry,influentialoligarchs,a high public debt burden, and widespread corruption.

Political Risk: High•The current president of the Ukraine is former foreign

trade minister Petro Poroshenko. He won the May 2014 elections with approximately 55% of the vote. President Poroshenko faces a challenging political environment in which he must facilitate economic reform and handle Russian interference.

•Ongoingreformmeasureswillbedifficulttoenactowingtoa decreasing appetite for such measures, especially ahead of the upcoming presidential and legislative elections in 2019.

•The country suffers from high levels of corruption, ranking 130 out of 180 countries in the most recent Transparency International Corruption Survey. As a result, parliament set up a High Anti-Corruption Court (HACC). Under a new law,appealsincorruptioncasesfiledbytheNationalAnti-Corruption Bureau cannot be considered by courts other than the HACC.

•Ukraine entered into a USD17.5 billion four-year Extended Fund Facility with the IMF in March 2015. Despite importantachievementsinthefinancialandenergysectors, the country has made limited progress privatizing state-owned enterprises.

Financial System Risk: Very High•The insurance industry is regulated by the Insurance

Supervision Division of the State Commission for Regulation of Financial Services Markets.

•Ukraine recently raised USD3 billion in an oversubscribed bondissue,thefirstsovereignbondissuesincethecountry restructured its debt in 2015.

•Efforts to strengthen the banking sector continue. According to the IMF, nearly 90 insolvent banks, accounting for more than 50% of the banking system’s assets, have been resolved. However, additional measures are needed, including stronger efforts to resolve the high levels of non-performing loans and the need to address weak banking supervision.

Economic Growth (%)

-20

-10

0

10

20

30

40

50

60

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Real GDP CPI Inflation

Source: IMF World Economic Outlook and A.M. Best

Political Risk SummaryScore 1 (best) to 5 (worst)

0

1

2

3

4

5International Transactions

Policy

Monetary Policy

Fiscal Policy

Business Environment

Labor FlexibilityGovernment Stability

Social Stability

Regional Stability

Legal System

UkraineWorld Average

Source: A.M. Best

Ukraine

GDP Per Capita and Population

0

20

40

60

80

100

120

140

160

0

5,000

10,000

15,000

20,000

25,000

Ukraine Belarus Kazakhstan Poland Russia Slovenia

USD

Millions

GDP Per Capita Population

Source: IMF and A.M. Best

BEST’S COUNTRY RISK REPORT

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