1. Current state of Azerbaijan Life Insurance market, trends and perspectives IV Azerbaijan International Insurance Forum - AIIF 20-21 June, 2013 Baku, “Jumeirah Bilgah Beach Hotel”

2. Since March, 2008, due to new legislation in insurance, all insurers should operate only in life or non-life (general insurance) insurance. The life insurance companies licensed from:  PASHA Life - February, 2011  Ateshgah Life - 2009  Qala Life - November, 2010 Life Insurance companies of Azerbaijan

3.  Mainly offered life insurance products in the local market: -Compulsory life insurance (Law of Azerbaijan Republic on compulsory insurance in case of professional disability as a result of industrial accidents and professional diseases) -Term life Insurance -Endowment life Insurance -Critical diseases -Key men life insurance -Borrowers life insurance Life Insurance products

4. InsurersTotal premium (USD) Annual growth (%) Market share (%) PASHA Life18,72979,604,30 Ateshgah Life20,08165,454,60 Qala Life8,08633,531,86 Total Life Insurance 46,89659,5310,75 Total Insurance market 436,498100 Life Insurance market of Azerbaijan Insurance premium (2012)

5.  Total collected premiums – 46,896 mln. USD  Compulsory life insurance – 27,653 mln. USD  Voluntary life insurance – 19,243 mln. USD  As a percentage of GDP - 0,07 % Structure of Life Insurance collection in Azerbaijan (2012)

6. InsurersClaims paid (millions USD) Annual growth of claims paid (%) Market share (%) PASHA Life0,46098,900,38 Ateshgah Life4,74122 times3,96 Qala life0,18234,880,15 Total:5,38111 times4,50 Life Insurance market of Azerbaijan Claims paid (2012)

7.  Life insurance - 41,888 millions USD  None life insurance - 173,117 millions USD  Total - 215,005 millions USD Insurance market of Azerbaijan T otal collected premium (January-May 2013)

8. InsurersTotal premium (million USD) Annual growth (%) Market share (%) PASHA Life18,94283,468,81 Ateshgah Life16,27338,367,57 Qala Life6,67358,713,10 Total life insurance 41,88860,1819,48 Total insurance market 215,00516,58100 Life Insurance market of Azerbaijan Insurance premium (January – May, 2013)

9. InsurersValue of share capital (millions AZN) Value of share capital (millions USD) PASHA Life25,20032,118 Ateshgah Life4,0005,098 Qala Life5,0056,379 Share capital value of Life Insurance companies of Azerbaijan (01 June, 2013)

10. Share capital value of Life Insurance companies of Azerbaijan

11. According to the Swiss Re report,  Total insurance premiums collected – 4,6 trln. USD  Percentage share of global GDP– 6,6%  Global Life Insurance premium collected– 2,62 trln. USD  The share of total insurance premium collected by the Life Insurance- 57%  The share of Life Insurance GDP in developed countries - 4-7% Global Insurance Market in 2011

12. CountryValue of GDP (millions of USD) The position number in the list - Azerbaijan68,80466- Georgia15,934113- Armenia10,066131- World71,707,302-- Source: Wikipedia, list by International Monetary Fund GDP figures of Caucasus states (2012)

13.  Azerbaijan -The share of GDP per capital (per person)– 7490 USD -The average monthly salary– 494 USD  Developed countries -The share of GDP per capital (per person) – 40000- 100000 USD -Approximate average monthly salary – 2000-6000 USD Gross Domestic Product (2012)

14. According to “Allianz” report;  German citizen – 1042 Euro  U.S. citizen – 1270 Euro  Japanese citizen – 2183 Euro  Azerbaijani citizen – 4 Euro Life insurance cost in different countries (per year)

15.  Development of new profitable voluntary insurance products  Strengthening of marketing activities by insurance companies  Strengthening of the population educating process about insurance products  The launch of various projects promoting insurance in media and etc.  The establishment of training centers for the insurance professionals preparation. Factors that may contribute to the development of life insurance

16.  The total life insurance market might grow 400-500% within next 3 years due to: -Bank assurance, new business companies, none oil sector of economy and etc.  Voluntary life insurance products might grow 300% within next 3 years due to: -Mainly, potential customers are financial institutions (commercial banks, insurance, leasing companies and etc.), state organizations, other business structures The real growth potential of life insurance market of Azerbaijan

17.  We are looking forward to see you in the “traditional Azeri evening” party tomorrow - 21 June 2013, at 8:00 pm organized by “PASHA Life Insurance” OJSC! Thanks!!!