slide 1 Insurance Company Universalna Open Joint Stock Company

slide 2 Why Ukrainian Insurance Market? Only Southern and Eastern European markets demonstrate considerable potential for growth Only Southern and Eastern European markets demonstrate considerable potential for growth Insurance is one of the most dynamically growing sectors of the Ukrainian economy Insurance is one of the most dynamically growing sectors of the Ukrainian economy In 2005 Gross Premiums collected from individuals increased 1.7 times compared to the previous year In 2005 Gross Premiums collected from individuals increased 1.7 times compared to the previous year Insurance entertains preferable taxation in Ukraine – profit from insurance operations is taxed at 3% comparing to 25% profit tax for other economic activities Insurance entertains preferable taxation in Ukraine – profit from insurance operations is taxed at 3% comparing to 25% profit tax for other economic activities

slide 3 Market Overview At this point of time it is difficult to correctly define the size of insurance market due to a common practice of using insurance products as an instrument for tax optimization. At this point of time it is difficult to correctly define the size of insurance market due to a common practice of using insurance products as an instrument for tax optimization. The share of real insurance products still does not exceed 30% of the total written premiums. The share of real insurance products still does not exceed 30% of the total written premiums. Starting from 2005 the trend has changed and, by the end of the year, the volume of real insurance has increased Starting from 2005 the trend has changed and, by the end of the year, the volume of real insurance has increased Real market is highly fragmented Real market is highly fragmented TOP-5 companies collect more than 9% of the total premiums written TOP-5 companies collect more than 9% of the total premiums written TOP-10 – 15% of the premiums written TOP-10 – 15% of the premiums written

slide 4 Leaders of Real Insurance Market, 2005* INSURANCE COMPANY Gross Premiums, mln. US$ Growth rate, % compared to ORANTA ,4 2Garant-auto ,4 3ASKA ,8 4 INGO Ukraine ,7 5Kredo-Classic ,9 6UNIVERSALNA ,1 7 ETALON ETALON ,4 8UPSK ,9 9 PZU Ukraine ,3 * Data based on Expert Ukraine

slide 5 Market Potential Motor Insurance Motor Insurance Motor TPL current penetration YoY % Expected car fleet market growth till 2010 – 11% CAGR That will increase considerably all types of Motor Insurance Property Insurance Property Insurance Prospected fast growth of mortgage market leads to consequent development of real property and construction risks insurance development Personal Insurance Personal Insurance Introduction of compulsory medical insurance and development of life insurance allows us to expect for sharp growth Forecasted growth in the next 5 years : min. 300%

slide 6 Company Snapshot 2 nd in terms of size of network among Ukrainian insurance companies 2 nd in terms of size of network among Ukrainian insurance companies Gross Premiums Written in 2005 – US$ 29 mln, in the 1 st half of 2006 – US$ 14.6 mln Gross Premiums Written in 2005 – US$ 29 mln, in the 1 st half of 2006 – US$ 14.6 mln Strategic positioning: retail with prime focus on providing services to individuals Strategic positioning: retail with prime focus on providing services to individuals Goal: to become Pan-Ukraine Insurance Company by expanding retail network into all regions of the country Goal: to become Pan-Ukraine Insurance Company by expanding retail network into all regions of the country

slide 7 Key Strength Key Strength: Over 15 years of presence and positive history in Ukrainian insurance market Over 15 years of presence and positive history in Ukrainian insurance market Independence: the company is not a captive Independence: the company is not a captive Transparent and clear shareholder structure Transparent and clear shareholder structure 2 nd biggest retail insurer in the country 2 nd biggest retail insurer in the country Strong re-insurance position and high-quality portfolio protection with key international players Strong re-insurance position and high-quality portfolio protection with key international players Experienced management team both in HQ and branches Experienced management team both in HQ and branches Nationally recognized and highly reputable brand-name Nationally recognized and highly reputable brand-name The first insurer which introduced ISO 9001 quality system The first insurer which introduced ISO 9001 quality system

slide 8 Key Market Segments Key Market Segments Company is one of the industry leader in the following segments: Segment Market Share Ukrainian Green Card Insurance Civil Liability of Motor Vehicles Owners28% in European countries Motor Hull Insurance 5% Travel Abroad Medical Insurance 20% Travel Abroad Medical Insurance 20% Motor TPL (Third Party Liability) Insurance 5% TIR-Carnet Insurance 100% TIR-Carnet Insurance 100%

slide 9 Financial Highlights Financial Highlights 000 US$ F F2006 Gross Premiums 19,600 29,000 32,000 Equity 9,500 9,700 19,000 Insurance reserves 7,900 10,800 12,000 Net profit

slide 10 Portfolio Structure F2006 F F2006 F2006 Type of Insurance Gross Premiums, 000 US$ % of total portfolio Gross Premiums, 000 US$ % of total portfolio TIR Carnet system Ukrainian Green Card Motor TPL Insurance Motor Hull Insurance Property Insurance Personal Insurance Travel Medical Insurance Other insurance Total % %

slide 11 Branch Network Branch Network 47 branches in all regions of the country 3 regional Directorates 1 representative office in Budapest, Hungary Company staff: Total – 1610 Agents Number of average surveyors: - 15 employees all over the country Real Estate objects: - 53 objects in all regions of Ukraine

slide 12 Branch Network Branch Network The Ratio of Head Office Premiums / Branches Premiums Ratio best demonstrates fast development of branch network. It is a perfect reflection of retail strategy and a stable growth trend that Universalna entertains.

slide 13 Effectiveness of Management Effectiveness of Management The effectiveness of the management of the company is indicated by one of the highest in the country Premiums/Employee Ratio. Premiums per employee (in USD) Total number of staffed employees: 2003 – 467 persons 2004 – 609 persons 2005 – 698 persons Growth, % Growth, % P/E company total P/E company total P/E branches P/E branches

slide 14 Client Relation Client Relation The company has built a strong relationship with its clients. It ensures high level of loyalty and trust among our clients as well as business partners. It is achieved, inter alia, by high level of claims settled and paid. Optimized Portfolio Structure and developed techniques of risk management results in higher than industry average but lower than TOP-10 average Ratio of Gross Premiums / Claims Settled IC Universalna 22% 31% 33% IC Universalna 22% 31% 33% Average market 12% 19% 29.5% Average market 12% 19% 29.5% Average TOP-10 24% 34% 35% Average TOP-10 24% 34% 35%

slide Life Insurance Company Universalna possess 100% stake of the subsidiary life insurance company Universalna possess 100% stake of the subsidiary life insurance company Life Insurance company operates under the same brand name Universalna – Life Life Insurance company operates under the same brand name Universalna – Life Gross Premiums Written in 2005 – US$ Gross Premiums Written in 2005 – US$ Total number of insured persons by Universalna Life – (7.27 % of the total number of insured nationwide) Total number of insured persons by Universalna Life – (7.27 % of the total number of insured nationwide) Total number of life insurance contracts – (14.13% of the total concluded contracts nationwide) Total number of life insurance contracts – (14.13% of the total concluded contracts nationwide) 15

slide 1 Life Insurance Market (2005) Name of Life Insurer Gross Premiums, 000 US$ Insurance indemnity, 000 USD No. of Insured Persons No. of Insurance Contracts 1 Grave Ukraine Alico AIG Life GARANT - Life ASKA – Life TAS Blue Police Etalon Life Lemma Vita PZU Life Ohrana Life Universalna Life Universalna in percentage to total market 1%2.4%7.27%14.13% 6

slide 17 Strategic Goals of the company, 2006 – 2008 Strategic Goals of the company, 2006 – 2008 Overall Goal: to be in TOP- 5 insurance companies in Ukraine Overall Goal: to be in TOP- 5 insurance companies in Ukraine Branch network position strengthening: the overall goal is for branches to have at least 75% share in Gross Premiums of the company Branch network position strengthening: the overall goal is for branches to have at least 75% share in Gross Premiums of the company Direct agency distribution network development Direct agency distribution network development Active development of life insurance company as a subsidiary Active development of life insurance company as a subsidiary Strong protection of the portfolio by re-insurance programs Strong protection of the portfolio by re-insurance programs

slide 18 Unique Investment Opportunities in Financial Industry One of the dominant players on a highly underdeveloped insurance market with a huge potential for future development within next couple of years One of the dominant players on a highly underdeveloped insurance market with a huge potential for future development within next couple of years Retail-driven business with a direct access to fastest growing segment of Ukrainian economy Retail-driven business with a direct access to fastest growing segment of Ukrainian economy Strong and experienced management team, positive experience of cooperation with foreign partners Strong and experienced management team, positive experience of cooperation with foreign partners Nationwide branch network with the offices in all the regions of Ukraine Nationwide branch network with the offices in all the regions of Ukraine Nationally recognized and highly reputable brand-name Nationally recognized and highly reputable brand-name

slide 19 Thanks for your attention… OJSC Insurance Company Universalna Tel/Fax: