UNITY RE

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UNITY RE
CORPORATE PROFILE 2014
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Milestones

• 1991 - North-West Insurance Co. was registered
  and then acquired by Group RESO one of the
  largest insurance holdings with Russia and FSU
• 2004 - renamed into Reso Re and started its
  active development within the reinsurance market
  of Russia and CIS
• 2005 - became one of the first reinsurers in FSU
  to receive the full-scale international financial
  strength rating B by Standard Poors
• 2006 - rebranded to Unity Re and also
  restructured to obtain more high-qualified and
  experienced team to promote further as the
  specialist reinsurance center of Group RESO and
  strategically the leading reinsurer within FSU
• 2007 - started operations in overseas markets,
  writing property, construction and marine
  business from South America, MENA and SEA
  regions, and was granted with the international
  financial strength rating of BB- from Standard
  Poors

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Milestones

• 2008 - promoted actively within the core markets
  Russia and CIS, - closing the year as the most
  dynamically growing specialist reinsurer in the
  region
• 2009 - demonstrated an excellent performance
  despite the burden of world financial crisis,
  meanwhile becoming the largest national treaty
  reinsurer
• 2010 - Unity Re finally conquered the top
  position in the market, ranked the first among
  the specialist reinsurers in Russia (over 1 bln
  RUR of GPW)
• 2010 - Unity Re is assigned a secure B (Good)
  rating by A.M.Best Company
• 2011 - Unity Re maintains the first rank position
  among the specialist reinsurers in Russia CIS
  with GPW of over 1,28 bln RUR
• 2012 Unity Re maintains the 1st rank position
  and finalizes the year with the exceptional net
  profit of over 346 m RUR

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Vision mission
Vision
Developing to maintain the position of the regional reinsurance market leader with Russia and FSU, providing the widest available scope of the first class reinsurance cover and confident linked services from a position of the absolute leading, financially stable, fast and attentive national reinsurer, and gradually promoting overseas as the reasonable medium-size capacity market player highly committed as a supporting reinsurer for the traditional lines of business.
Mission
To provide a very fast response to cedants demands for a wide range of non-life reinsurance lines of business with the first class growing capacity and additional services to support the clients with underwriting expertise, confident and prompt claims settlement and relevant advisory to rely upon a stable, integral and solid team of professionals fully committed to companys performance and clients needs to promote the status of a leading Russian/FSU specialist reinsurer well known worldwide.
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Highlights competences
Market Leading Company Leading specialist Ranked 1st by reinsurance GPW among specialist reinsurers in Russia CIS in 2010-2012
Market Leading Company Established team Highly regarded solid management team, stable since 2006
Market Leading Company Strong financial performance Consistently profitable with strong underlying growth. Results of 2012 (IFRS) Net profit 346m RUR LR 60 CR 79 ROE 34
Market Leading Company Strong capitalisation Exceptionally capitalised with a very strong solvency margin
Market Leading Company Rated Financial Strength Rating from a leading international agency
Market Leading Company Regional distribution Distribution across the whole of Russia and the former USSR territories and overseas
Market Leading Company Corporate governance IFRS audited accounts since year-end 2006. Experienced Supervisory Board. Operating to international standards
Market Leading Company Excellent operational performance 2012 GPW growth 20,3 market share 6 Renewal ratio 86 GPW per capita 67,2 mln RUR
Market Leading Company Largest and most stable clients base 630 cedants Russia, CIS and overseas
Market Leading Company Brand A recognizable brand with Russia/FSU London market MENA region and SEA
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Legal compliance

• The 100 shareholder of Unity Re is RESO Holding
  - one of the leading insurance holdings within
  Russia CIS.
• Currently, the paid-up capital of Unity Re is
  700m RUR (16.6m USD)
• The actual reinsurance license No. 1643 77 of
  04.07.2007.
• Since 2007, KPMG has been the official auditor of
  Unity Re for IFRS financials. Since 2012,
  Deloitte is the official auditor.

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International rating
Unity Re has the following actual international
ratings assigned
 Rating Outlook Status
A.M.Best B (Good) Positive Updated 20.09.13

• Rating reports specially outline Unity Res
• Good capitalization
• Profitability and stable operational results
• Strong leading position in the markets of Russia
  and CIS
• Very good level of retrocession protection

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International rating

• Leading position in the Russian reinsurance
  market, strong capitalization and consistent
  financial results
• A leading reinsurer operating in Russia and
  CIS portfolio of cedants includes most of the
  largest local insurance companies
• Risk adjusted capitalization is strong and
  supportive of rapid premium growth
• Technical profitability in 2010 improved
  significantly. With a combined ratio of 74 in
  2010 and 80 in average over the last five years,
  Unity Re has been growing rapidly without
  deteriorating the quality of its portfolio

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Portfolio 2012
The scope of Unity Res activities is classic
reinsurance, where the company offers coverage
for all major lines of business general
property, construction, energy and petrochemical,
cargo, marine hull, aviation, accident health,
liability.
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Portfolio 2012

• 500(re)insurance and broking companies from
  Russia, CIS overseas
• 287 companies from Russia, inc. all players from
  Top-50 (a unique!)
• cooperation with all major brokers operating in
  Russia, inc. Marsh, Willis, Aon, Malakut, THB,
  Nasco, AFM etc.

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Portfolio 2011
The major geographical scope of Unity Res
business is focused at Russia
CIS. Additionally, since 2006, Unity Re has
intensified its activities in overseas markets,
writing business from South-East Asia, Central
South America and Africa.
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Largest paid claims 2006-2012
Amount paid, mln RUR Year Cedant Details
75,00 2010 Sogaz Fire at Novokuybyshevsky refinery
29,9 2012 Megaruss D Damage to an electronic equipment during transit
19,7 2007 Renessans insurance Explosion of a blust-furnace at Azov-steel plant
19,4 2010 Military IC Fire at a meat processing plant
17,6 2010 AzRe Loss of a motor yacht
16,7 2012 Kapital Insurance Explosion fire at Baksanskaya HPP
16,5 2010 ROSNO Explosion at Sayano-Shushenskaya HPP
16,2 2012 ASKA Damage to the converting equipment at smelter
15,9 2011 Alfastrakhovanie Damage to a mining equipment
13,9 2008 Spasskie vorota Fire at an office building
13,8 2010 ZHASO Damage to a rolling stock
13,0 2011 Soglasie Fire at a electrical sub-station
11,6 2010 Sogaz Damage of railway property after EQ
11,1 2006 KNIC Heavy rains damage to residential property
10,0 2007 Energogarant Fire at Reftinskaya HPP
6,8 2009 Spasskie vorota Cargo waved out from a deck during marine transit
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Market position 2012
Top specialist reinsurers writing genuine
reinsurance, 2012
Rank Company GPW, 000 RUR
1 Unity Re 1 548 223
2 Moscow Re 1 284 543
3 Kapital Re 1 006 048
4 SCOR Reinsurance 951 638
5 Kama Re 706 664
6 Transsib Re 700 831
7 Russian Re 541 818
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Key financials, IFRS
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Key financials, IFRS
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Capacity 2014
LOB Maximum line Net retentionRussia FSU PML basis Maximum line Overseas PML basis Maximum lineGross retention Russia FSU
Property (FAP/PAR/IAR) USD 2,000,000 USD 5,000,000 USD 50,000,000 (for business from Russia/CIS XOL treaty)
CAR/EAR USD 2,000,000 USD 5,000,000 USD 50,000,000 (for business from Russia/CIS XOL treaty)
Energy off-shore USD 1,000,000 USD 5,000,000 -
Marine hull / PI / Rolling stock USD 500,000 USD 7,000,000 USD 7,000,000 (worldwide, XOL treaty)
Cargo USD 500,000 USD 7,000,000 USD 10,000,000 (worldwide, XOL treaty)
GTPL USD 500,000 USD 500,000 -
Aviation USD 500,000 USD 500,000 -
Motor USD 250,000 USD 250,000 -
Personal accident USD 200,000 USD 200,000 USD 1,500,000
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Team

• International business
• Igor Shekhovtsov, Deputy CEO
• MA (Fin)
• Dmitry Vanin, Director of International business
  dept.
• MA (Sc), CertCII
• Underwriting
• Svetlana Chepeleva, Deputy CEO, Chief underwriter
  PC
• MA (Fin), over 22 years of u/w experience
• Elena Jishkariani, Managing Underwriter, Marine
  Overseas PC
• MA (Fin), over 12 years of u/w experience
• Julia Mironenko, Managing Underwriter, Treaty
• MA (Fin), over 12 years of u/w experience
• Elena Mishalueva, Director, Overseas PC
• MA (Fin)
• Elena Korotkova, Managing Underwriter, Casualty
• MA (Fin)

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Contacts
125047, Russian Federation, Moscow, Gasheka st.,
12 Tel. [phone]Fax [phone]
6598 E-mail re_at_unityre.ru www.unityre.com