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RUSSIAN REINSURANCE MARKET DEVELOPMENT

RUSSIAN REINSURANCE MARKET DEVELOPMENT. Dmitry GARMASH Deputy CEO Unity Re Ltd. FIAR, Sinaia, 2012. Market dynamics (FSIS), billion RUR. 201 1: Non-life insurance GPW 23 bln USD . Non-life paid claims 10,6 bln USD Inward reinsurance GPW 1,2 bln USD

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RUSSIAN REINSURANCE MARKET DEVELOPMENT

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  1. RUSSIAN REINSURANCEMARKET DEVELOPMENT Dmitry GARMASHDeputy CEOUnity Re Ltd. FIAR, Sinaia, 2012

  2. Market dynamics (FSIS), billion RUR • 2011: • Non-life insurance GPW23 bln USD. • Non-life paid claims10,6 bln USD • Inward reinsurance GPW 1,2 bln USD • Inward reinsurance paid claims 0,4 bln USD

  3. Inward reinsurance

  4. Inward reinsurance market, 2011 • Inward R/I 2010 – 1,2 bln$: 1st year of stabilization. • Classic risk business share – about 50%, i.e. roughly 0,6 bln$ • Specialist reinsurers – up to 20-25% of total inward R/I GWP • Total number of reinsurance players in 2011г. – 133 (2010 – 152$ 2009 – 176; 2008- 196) • Total number of specialist reinsurers - 18(2010 – 23; 2009 – 25) • Oligopolistic structure = quality! • Outward reinsurance – stability since 2010: ~3 bln USD 4

  5. Factors of trending • Stability of genuine risky reinsurance volume & absolute amount of claims paid. • Dumping and overall rates softening • Rise of retentions & reinsurance protections VS • Market consolidation better quality of services • R/I business from overseas seeking alternative capacities • Adaptation and correction of actual strategies • Shifting retentions and capacities of R/I players

  6. Market players

  7. Market players – Top-15 reinsurers

  8. Business from overseas

  9. 60% 16% 4% 18% 2% Business from overseas

  10. Grounds for growth • Strengthening financial and technical capabilities of the players! • Rise of capacities, retentions and retro-programs • Difference in leaders of retro- and reinsurance programs • Globalization and active development of emerging markets  demand for alternative capacity • Further spread of brokers’ activities geographically • Historically active cooperation with CIS • No binding to world (re)insurance cycle

  11. UNITY RE A RUSSIAN REINSURANCE LEADER 2011

  12. Milestones • In 2004, renamed into Reso Re and started its active development within the reinsurance market of Russia and CIS. • In 2006, rebranded to Unity Re and also restructured to obtain more high-qualified and experienced team to promote further as the specialist reinsurance center of Group RESO and strategically the leading reinsurer within FSU. • In 2007, started operations in overseas markets, writing property, construction and marine business from South America, MENA and SEA regions. • In 2007, was granted with the international financial strength rating of ‘BB-’ from Standard & Poor’s. It is maintained until nowdays with the enhancement of the rating outlook from stable to positive. • In 2010, Unity Re finally conquered the top position in the market, ranked the first among the specialist reinsurers in Russia (over 1 bln RUR of GPW) • In 2011, A.M.Best assigned a secure “B+” rating, outlook stable, to Unity Re. 12

  13. Vision & mission

  14. Highlights & competences 14

  15. Legal & compliance • The 100% shareholder of Unity Re is RESO Holding - one of the leading insurance holdings within Russia & CIS. • Currently, the paid-up capital of Unity Re is 500m RUR (~16.6m USD) • The actual reinsurance license No. 1643 77 of 04.07.2007. • Since 2007, KPMG has been the official auditor of Unity Re for IFRS financials.

  16. International rating Unity Re has the following actual international ratings assigned: • Rating reports specially outline Unity Re’s: • Good capitalization • Profitability • Strong position in the domestic market • Very good level of retrocession protection

  17. Portfolio 2011 The scope of Unity Re’s activities is classic reinsurance, where the company offers coverage for all major lines of business: general property, construction, energy and petrochemical, cargo, marine hull, aviation, accident & health, liability.

  18. Portfolio 2011 • 344(re)insurance and broking companies from Russia, CIS & overseas • 287 companies from Russia, inc. all players from Top-50 (a unique!) • cooperation with all major brokers operating in Russia & internationally

  19. Portfolio 2011 The major geographical scope of Unity Re’s business is focused at Russia & CIS. Additionally, since 2006, Unity Re has intensified its activities in overseas markets, writing business from South-East Asia, Central & South America and Africa.

  20. Largest paid claims 2006-2011

  21. Capacity 2012

  22. Contacts 125047, Russian Federation, Moscow, Gasheka st., 12 Tel.: +7 495 956 6589Fax: +7 495 956 6598 E-mail: re@unityre.ru www.unityre.com

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