Insurance Company

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Open Joint Stock Company
Insurance Company Universalna
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Why Ukrainian Insurance Market?

• Only Southern and Eastern European markets
  demonstrate considerable potential for growth
• 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
• Insurance entertains preferable taxation in
  Ukraine profit from insurance operations is
  taxed at 3 comparing to 25 profit tax for other
  economic activities

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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.
• 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
• Real market is highly fragmented
• TOP-5 companies collect more than 9 of the
  total premiums written
• TOP-10 15 of the premiums written

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Leaders of Real Insurance Market, 2005
Data based on Expert Ukraine
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Market Potential

• Motor Insurance
• Motor TPL current penetration YoY 2005 - 20
• Expected car fleet market growth till 2010 11
  CAGR
• That will increase considerably all types of
  Motor Insurance
• Property Insurance
• Prospected fast growth of mortgage market leads
  to consequent development of real property and
  construction risks insurance development
• 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

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Company Snapshot

• 2nd in terms of size of network among Ukrainian
  insurance companies
• Gross Premiums Written in 2005 US 29 mln, in
  the 1st half of 2006 US 14.6 mln
• 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

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

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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 Owners 28 in
European countries Motor Hull Insurance 5
Travel Abroad Medical Insurance
20 Motor TPL (Third Party Liability)
Insurance 5 TIR-Carnet
Insurance 100
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Financial
Highlights 000 US 2004
2005 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
- 473 115
800
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Portfolio Structure
2005
2005 F2006 F2006
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Branch Network 47 branches in all
regions of the country 3 regional Directorates
1 representative office in Budapest, Hungary

• Company staff
• Total 1610
• Agents - 856

Number of average surveyors - 15 employees all
over the country
Real Estate objects - 53 objects in all regions
of Ukraine
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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.
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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

2004
2005 Growth, P/E company total
19 980 38 138 92 P/E branches
9 654 21 029 118
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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.
2003 2004
2005 IC Universalna
22 31 33
Average market 12
19 29.5 Average
TOP-10 24 34
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Life Insurance Company

• Universalna possess 100 stake of the subsidiary
  life insurance company
• Life Insurance company operates under the same
  brand name Universalna Life
• Gross Premiums Written in 2005 US 535 600
• Total number of insured persons by Universalna
  Life 14 528 (7.27 of the total number of
  insured nationwide)
• Total number of life insurance contracts 9 818
  (14.13 of the total concluded contracts
  nationwide)

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Life Insurance Market (2005)

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• Strategic Goals of the company, 2006
  2008
• 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
• Direct agency distribution network development
  
• Active development of life insurance company as
  a subsidiary
• Strong protection of the portfolio by
  re-insurance programs

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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
• 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
• Nationwide branch network with the offices in
  all the regions of Ukraine
• Nationally recognized and highly reputable
  brand-name

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Thanks for your attention
OJSC Insurance Company Universalna Tel/Fax
380 44 281 61 55 www.universalna.com
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