republican unitary enterprise “belarusian national reinsurance organization” working with us you...

Republican Unitary Enterprise“Belarusian National Reinsurance Organization”

WORKING WITH US YOU WORK WITH ENTIRE COUNTRY

FEATURES OF BELARUSIAN INSURANCE MARKET

Belarusian Insurance market participants as at 1 April 2011 are 24 operating companies (20 of which perform non-life insurance, including 1 company ─ reinsurance only, 4 ─ life insurance) and 6 insurance brokers.

BELARUS RE

Achieving Success Together

On patterns of ownership there are 4 state-owned companies (BELGOSSTRAKH, BELARUS RE*, EXIMGARANT OF BELARUS, STRAVITA), 4 companies have effective state participation of more than 50% (BELKOOPSTRAKH, BELNEFTESTRAKH, PROMTRANSINVEST,TASK), the other companies are private.

The total net worth of Belarusian insurance companies as at 1 April 2011 made in an equivalent about EUR 500,0 m.

* Official name - Republican Unitary Enterprise "Belarusian National Reinsurance Organization"

ABOUT US

The founder of Belarus Re is the Council of Ministers of the Republic of Belarus.

As at 1 April 2011, the authorized fund of Belarus Re and net worth made EUR 109,6 m and EUR 114,1 m respectively.

BELARUS RE

Belarus Re was established by the resolution of the Council of Ministers of the Republic of Belarus as of 4 November 2006 No.1463 “On Establishment of Belarusian National Reinsurance Organization” in accordance with the Decree of President of the Republic of Belarus dated as of 25 August 2006 No.530 “On Insurance Operations” and is subordinated to the Ministry of Finance.


RATING

BELARUS RE

On 17 March 2011, Standard & Poor’s International Services assigned its “B+” counterparty credit and financial strength ratings to Belarus Re. The outlook – “Negative”.

According to Standards & Poor’s view, Belarus Re plays an important role in Belarusian economy being a state-owned enterprise and the sole provider of reinsurance protection for the Belarusian market.


PLACE AND ROLE IN BELARUSIAN INSURANCE MARKET

BELARUS RE

Legislation of the Republic of Belarus provides a number of measures aimed at regulation of reinsurance activity in the country.

• Since 1 January 2011, 60% transfer of the undertaken liabilities to Belarus Re under each contract of voluntary non-life insurance, exceeding legislative standard of liability;

• Belarus Re is the sole company which cooperates with foreign insurance and reinsurance companies (brokers) on placing risks insured on the territory of the Republic of Belarus;

• The implementation by insurance companies of tariff policy coordinated with Belarus Re upon conclusion of insurance contracts against risks, exceeding legislative standard of liability.


STRATEGY

BELARUS RE

Strategic goal: creation of an international standard reinsurance company, offering a full range of reinsurance services and providing its clients with comprehensive protection according to international standards.

Activities to achieve the goal: • further development of cooperation with insurance companies of the Republic of Belarus, including acceptance of risks not subjected to mandatory transfer for reinsurance;• development of cooperation with insurance and reinsurance companies in the CIS and Western Europe markets and other countries all over the world;• improvement of the organizational structure, as well as implementation of advanced technologies and methods in the field of Underwriting;• creation of favourable conditions for professional growth and creativity of employees;• conducting of effective investment policy.


CORE FIGURES

BELARUS RE

Position 2007 2008 2009 2010 2011

I Qtr

Growth Rate as against

I Qtr 2010 (%)

Number of contracts 2 047 4 503 4 741 6 515 1 771 200

Premium written, EUR ‘000 1 886,9 7 682,8 12 513,3 16 813,9 3 514,8 140

Premium received, EUR ‘000 1 074,9 7 239,1 11 075,5 14 122,9 4 768,3 154

Premium ceded, EUR ‘000 296,1 4 000,9 6 920,1 8 355,2 1 577,1 168

Payments, EUR ‘000 376,4 1 854,7 2 576,5 1 871,0 146,8 22

Liability accepted, EUR ‘000 000 1 997,6 9 307,3 17 984,1 18 209,3 829,4 51

Actuarial reserves, EUR ‘000 458,5 1 345,1 1 578,1 3 923,0 5 316,0 248

Authorized fund, EUR ‘000 17 254,9 110 042,6 112 245,5 118 244,7 109 556,0 96

Net worth, EUR ‘000 18 200,0 111 325,5 114 966,8 121 228,6 114 051,3 96

Net profit, EUR ‘000 974,7 1 329,8 2 712,5 3 406,1 2 050,7 170


NUMBER OF CONTRACTS

BELARUS RE


94

235

888

1771

I Qtr. 2010 I Qtr. 2011

13270

915 831 690273

2047

4503 4741

6515

2006 2007 2008 2009 2010

Contracts of Reinsurance

Contracts of Retrocession

REINSURANCE PREMIUM

BELARUS RE


0

2000

4000

6000

8000

10000

12000

14000

2007 2008 2009 2010

1 074,9

7 239,1

11 075,5

14 122,9

296,1

4 000,9

6 920,18 355,2 Reinsurance premium

accepted (EUR'000)

Reinsurance premium ceded (EUR'000)

0

2000

4000

6000

8000

10000

12000

14000

I Qtr. 2010 I Qtr. 2011

2 520,5

4768,3

1298,8 1 577,1

AMOUNT OF LIABILITY

BELARUS RE


0

3000

6000

9000

12000

15000

18000

21000

2007 2008 2009 2010

1 997,6

9 307,3

17 984,1 18 209,3

1401,1

8 795,410 248,6

14 829,4

Reinsurance liability accepted (EUR '000 000)

Reinsurance liability ceded (EUR '000 000)

0

3000

6000

9000

12000

15000

18000

21000

I Qtr. 2010 I Qtr. 2011

1 622,5 829,4484 990,71

INWARDS REISURANCE PORTFOLIO PERFORMANCE FOR I QUARTER 2011

Lines of Business

BELARUS RE


Aviation Risks Reinsurance

15,5%

Property Reinsurance

20,1%

"Green Card" Liability

Reinsurance20,0%

Cargo Reinsurance

2,7%

Liability against Customs

Authorities Reinsurance

4,8%

Land transport Reinsurance

4,8%

Financial Risks Reinsurance

15,1%

Others17,0%

Facultative64,4%

Treaty35,6%

BELARUS RE

Voluntary82,1%

Compulsory17,9%

INWARDS REINSURANCE PORTFOLIOPERFORMANCE FOR I QUARTER 2011

Classes & Forms of Reinsurance


SOME INWARDS REINSURANCE TREATIES FOR I QUARTER 2011

BELARUS RE

Moscow Re (property, engineering risks)

Ingosstrakh (property, engineering risks, space risks)

Rosgosstrakh (property, cargo)

Nakhodka Re (property, engineering risks)

Kapital Insurance (aviation hull, liability, property, engineering risks)

Kapital Reinsurance (property, engineering risks)

Unity Re Insurance & Reinsurance Company (property, engineering risks)

BTA AAS Latvia (liability)

BTA Draudimas UAB (liability)

Korean Re (property, engineering risks)


OUTWARDS REINSURANCE PORTFOLIOPERFORMANCE FOR I QUARTER 2011

Lines of Business

BELARUS RE


Aviation Risks Reinsurance

49,6%

Property Reinsurance

7,2%

“Green Card” Liability

Reinsurance19,7%

Cargo Reinsurance2,8%

Liability against Customs

Authorities Reinsurance

9,6%

Others11,1%


Participants

BELARUS RE


Lloyd's Syndicates35,5%

Other1,4%

Chartis Ltd5,7%Munich Re

8,8%

Ingosstrakh14,8%

Partner Re5,0%

Hannover Re5,3%

Allianz GroupCompanies

2,8%

Belarusian insurance companies

7,3%

Insurance,reinsurance

companies ofRussian Federation

1,5%

Swiss Re 2,9% Amlin

5,5%SCOR3,5%


Financial Strength Rating

BELARUS RE


From ААА to А(High rating level)

74,9%

From ВВВ to В(Insufficiently high

rating level)17,7%

NR(Not rated)

7,4%

AVIATION RISKS

BELARUS RE


Since 2007, Belarus Re has been providing aviation risks reinsurance, including risks of national air carriers: Belavia – Belarusian National Airlines and Transaviaexport Cargo Airline.

Limits of liability under reinsurance contracts: • Aviation hull – up to USD 44,2 m; • Airline liability – up to USD 750 m.

As at 1 April 2011, reinsurance cover was provided in relation to: •18 aircraft of Belavia – Belarusian National Airlines: CRJ-200LR (3 aircraft), CRJ-100LR (1aircraft), Boeing 737-500 (6 aircraft), Boeing 737-300 (3 aircraft), Boeing 737-800 BBJ (1 aircraft), Тu-154 (3 aircraft), Challenger 850 CL -600-2B19 (1 aircraft);• 5 aircraft IL-76TD of Transaviaexport Cargo Airline.

Risks are placed on facultative quota share basis. Retrocession is provided directly by Belarus Re in the local market.

In the international market retrocessional cover against aviation risks is acquired directly from Russian leading insurance and reinsurance companies and via a broker company Willis Limited (UK) from such companies as Munich Re (Germany), Allianz Global Corporate & Specialty AG (Germany), Swiss Re Frankona Rückversicherungs AG (Germany), AIG UK Ltd (UK), Liberty Mutual Insurance Europe Ltd (UK), Aspen Insurance (UK), Generali IARD (France), Aviabel S.A. Brussels (Belgium), Lloyd’s Syndicates (UK).

GREEN CARD

BELARUS RE

Since 1 June 2007, the Republic of Belarus is a full member of the International Green Card System.

Belarus Re reinsures Green Card Belarusian Certificates since 2008.

Since 2010, net retention of the national insurance market under the Green Card Belarusian Certificates Reinsurance Contract has been increased from EUR 260 000 to EUR 500 000.

The Leader under Green Card Belarusian Certificates Reinsurance Contract is Partner Re, Co-leading Reinsurer is Munich Re. The placing broker is MARSH-Insurance Brokers.

Belarus Re participates in reinsurance of Green Card Belarusian Certificates on the first and the second layers of the treaty.

Estimated premium income of Belarusian insurance companies in 2011 under Green Card Belarusian Certificates Insurance Contracts is EUR 20 600 000.


REINSURANCE WITHIN TIR CONVENTION 1975

BELARUS RE

Quota Share Reinsurance and Retrocession Contract was concluded under which Belarus Re reinsures 65% of liability, having 15% of net retention and placing via broker company R.L. Davison & Co Ltd. 50% in Lloyd’s syndicates.


PROPERTY AND ENGINEERING RISKS EXCESS OF LOSS REINSURANCE

BELARUS RE

The limit of the treaty is USD 15 m.The Leader is SCOR.The placing broker is Société de Courtage Re Ltd Insurance Broker.The net retention is USD 1,5 m.The coverage is provided on three layers: 1 layer – USD 2,0 m in excess of USD 1,5 m 2 layer – USD 5,0 m in excess of USD 3,5 m 3 layer – USD 6,5 m in excess of USD 8,5 m

The territorial scope is the Republic of Belarus and Belarusian interests abroad, other areas under the Leader’s special acceptance. The Renewal from 1 April 2011 to cover the territories of Commonwealth of Independent States (CIS).


MAJOR LOSSES

BELARUS RE

Belarus Re paid indemnity in the amount of: • USD 245,376 due to M/V “Trans Pacific” grounding (2008);

• USD 1,960,000 for Aircraft total loss at Zvarnots airport, Armenia (2008);

• USD 156,698 for environmental damage due to “Unecha-Rovno” oil-trunk pipeline breaking (2008);

• USD 469,593 in relation to loss of cargo of Belarusian Potash Company in Paris Gudang Port, Malaysia (2009);

• USD 300,000 to Malakut Sozvezdie Insurance Brokers for loss of insured property (2010);

• USD 95,372 for damage due to fire, caused to property of Concordia LLC, Russia (2010).


MAXIMUM RETENTION LIMITS*

Class of BusinessFacultative Reinsurance,

Gross Retention, USD

Treaty Reinsurance,

Net Retention, USD

Commercial Property 15 000 000 2 000 000

CAR/EAR 15 000 000 2 000 000

Cargo 2 000 000 2 000 000

Aircraft (per each aircraft) 1 000 000 500 000

Launch vehicle/spacecraft 500 000 500 000

Orbital maintenance of spacecraft 500 000 500 000

Land transport (per each vehicle) 300 000 300 000

Civil liability of aircraft owners 6 000 000 6 000 000

TPL 5 000 000 5 000 000

Civil liability for spacecraft launch / orbital maintenance of spacecraft 5 000 000 5 000 000

Civil liability of hazardous organizations 1 500 000 1 500 000

Civil liability of carrier and forwarder 1 000 000 500 000

BELARUS RE


* Limits of liability on each and every contract may vary from the above-mentioned subject to risk exposure

BELARUSIAN NUCLEAR INSURANCE POOL

On 5 March 2009, under the initiative of Belarus Re there was created Belarusian Nuclear Insurance Pool, the aim of which is insurance against risks related to engineering, construction and operation of NPP, as well as reinsurance of Belarusian and foreign nuclear risks.

The participants of Belarusian Nuclear Insurance Pool are six companies: two of them are state companies (Belgosstrakh, Eximgarant of Belarus) and four – with state participation of more than 50% (Belkoopsrakh, Belneftestrakh, Promtransinvest, TASK). The Leader is Belgosstrakh. Belarus Re provides reinsurance protection.

Reinsurance contracts have been concluded with Ukrainian Nuclear Insurance Pool in relation to risks of Enegroatom NAEC and with Russian Nuclear Insurance Pool on risks of Energoatom Concern.

BELARUS RE


OUR PARTNERS

Insurance companies of the Republic of Belarus

Belgosstrakh, Promtransinvest, Eximgarant of Belarus, Belneftestrakh, Rosgosstrakh, Belkoopstrakh, B&B Insurance Co, TASK, Belvneshstrakh, Belingostrakh, Belrosstrakh, Garantia, Generali, Kentavr, Kupala, Bagach, Zepter insurance, Ergo.

Foreign companies

Ingosstrakh (Russia), SOGAZ (Russia), Kapital Insurance (Russia), Kapital Reinsurance (Russia), AlfaInsurance (Russia), ROSLES (Russia), Moscow Re (Russia), Lloyd’s syndicates (UK), Munich Re (Germany), Hannover Re (Germany), Amlin Corporate Insurance (UK), SCOR (France), Partner Re (Switzerland), Allianz Group,Vienna Insurance Group (Austria), Chartis (China), Korean Re (South Korea), Willis Limited (UK), R.L.Davison & Co Ltd (UK), Filhet-Allard Maritime (France), Mathrawala&Sons Insurance Brokers PVT. LTD. (India), Malakut Insurance Brokers (Russia), MARSH – Insurance Brokers (Russia) and other companies. We cooperate with more than 70 companies from 17 countries.

BELARUS RE


CONTACT INFORMATION

BELARUS RE

Belarus Re14, Chkalov Street220039 MinskRepublic of Belarus

E-mail: [email protected]: www.belarus-re.com

Director General: tel./fax: (+375 17) 256 07 11

Reinsurance Division: tel.: (+375 17) 256 04 11 fax: (+375 17) 256 05 77

Business Development, International Cooperation & Advertising Department: tel.: (+375 17) 256 06 38


mailto:[email protected]

republican unitary enterprise “belarusian national reinsurance organization” working with us you...

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