1. DEVELOPMENT OF RUSSIAN INWARD REINSURANCE CAPACITY FOR OVERSEAS BUSINESS Dmitry Garmash Director, Ph.D. International Business Dept. Unity Re Ltd. 30 th March, 2007г. President-Hotel, Moscow

2. For 2006 г. in Russia: Gross premium written in non-life insurance – $22,29 billion Gross premium written in inward R/I – $3,05 billion Inward R/I / direct insurance – 13,7% 23,1% 20,2%

3. Overseas inward R/I share = 6,4% - about $196 million. 20-25% annual increase in inward R/I from overseas for last 2 years

4. Basic factors of inward R/I increase for today and for next 1-2 years: (re)insurers’ capital raise and enhancement + treaty coverage widening domestic market strength & narrowness  search for new business sources expand of brokers’ geographical scope since 2004 insurance cycle phaze  demand for alternative markets stable demand for R/I coverage from emerging markets – Asia, Africa, Central & South America

5. Direction of inward R/I from overseas (cedants, GPW): close markets (CIS, Baltia, CEE) markets of stable cooperation (S.-E. Asia, Arabian region) markets of growing cooperation (America, Africa) 10% 75% 11% 3% 1%

6. Quantitative aspects of inward R/I from overseas to Russia: regional difference in class structure basic classes: Property, Energy, Marine hull main channels: broker-reinsurer; broker-broker-reinsurer support for large global placements (>1 brokers, relatively small participation shares) “low-liquidity” risks placement (old brown-water fleets; risky single vessels, dangerous productions, under-market terms&conditions, dangerous territories)

7. Main market players dealing with R/I from overseas (professional reinsurers, insurers and brokers): Ingosstrakh Unity Re Kapital Re Moscow Re Moscow IC SOGAZ Rossiya Transsib Re Malakut Rifams Scanmarine Benfield PWS AFM Oakeshott

8. Estimated R/I capacity for overseas business: ClassForeign business, Million US$ Foreign business with Russian and former- USSR interest, Million US$ Property25400 Energy15200 CAR/EAR/MB20250 Marine Hull50120 Cargo50100 Aviation Hull535

9. Development barriers: ratings and relative legislation regional borders available capacity incoming risks quality plecement terms & conditions global role of broker (documentary, payments, adjusting)

10. Developments aspects and perspectives: rating + financial strength enhancement regional brokers channel development further market M&A + foreign security for treaties  demand for new sources of inward R/I region/class market niche stability more tight binding to worldwide/regional R/I market trend, environment and factors foreign capital in Russia and carefull U/W policy

11. THANKS FOR YOUR KIND ATTENTION! For questions please contact: Dmitry Garmash Tel.: +7 495 203-5086, доб. 4946 Mob.:+7 926 203-7509 E-mail:re_gardv@reso.rure_gardv@reso.ru