IJSC «GEFEST» - WHO WE ARE

■ ■ GEFEST joint-stock insurance company was established in Moscow in 1993 The company is widely recognized as a leader in construction insurance, including unique, technically complex and capital-intensive infrastructure construction projects ■ The company is aggressively developing into a universal B2B insurer offering a wide range of general insurance services for commercial entities ■ ■ ■ GEFEST IS A MEMBER OF: ■ ■

The International Association of Engineering Insurers (IMIA) The All-Russia Union of Insurers

■ ■

The Russian Tunnel Association The Association of Moscow Investors The Russian Union of Motor Transport Insurers Russian Anti-Terroristic Insurance Pool The

National Union of Liability Insurers for exploiters of hazardous industrial objects

IJSC «GEFEST» - WHO WE ARE

■ ■ ■ ■ ■ Branches and representatives: in 15 Russian cities. Insurance protection in 51 regions of Russia People: more than 300 employees work for the company nowadays Financial strength rating by Fitch Ratings on “B+” (positive outlook) on the international scale and “А” on the national scale Financial strength A+ rating (very high reliability) on Expert RA national rating agency Share capital – 750 mln. RUR (about 25 mln. USD)

STRATEGIC APPROACH:

■ Development of engineering risks insurance and reinsurance, creation of system approach to new business lines such as MB, MLOP, LOP, BI, liability ■ Development of new lines of business: insurance of power industry, oil-and-gas, railway and other transport systems ■ ■ Development of comprehensive insurance At the same time the Company strives to be highly experienced universal insurance and reinsurance company

OUR COMPETITIVE ADVANTAGES

■ ■ ■ ■ ■ ■ ■ ■ ■ ■

19 years experience

over Russia in insurance of the most huge and complex construction projects all

Perfect relationship with contractors and state customers

projects, financed from federal and regional budget of a huge construction

Unique engineering underwriters team

with great insurance and on-site work experience Invaluable experience in

settlement of huge and complex claims

. Professional and highly experienced team of claims managers

Largest claims paid

under insured events occurred on Russian CAR/EAR insurance market

Reliable reinsurance protection

created not only for capital-intensive construction projects but also to protect properly all kinds of business written by the company Wide range of directions on

reinsurance activity

: very developed relationship with Russian companies and great value of international inward and outward business

Intensive development

of the Company combined with development of a types of insurance different from CAR/EAR applying the system approach in risks management GEFEST is the national

leading expert

in liability insurance of Self Regulating Organizations members (SRO insurance)

The new sales channel

is operating: cooperation with insurance brokers

POSITIONS ON RUSSIAN MARKET

By the volume of written premiums IJSC «GEFEST» keeps the 34th place 34 By the volume of written premium in CAR/EAR insurance, IJSC «GEFEST» has been strongly keeping one of the leading positions

*information provided by Expert RA (Russia) as at 2011

2

KEY FINANCIAL FIGURES

Figure, mln USD

Total writen premium Total earned premium Net claims paid Loss ratio,%

2007

45.7

23.7

5.7

24

2008

69.8

43.0

7.1

16 90 80 70 60 50 40 30 20 10 0

Total writen premium, mln USD

82,8 76,4 69,8 45,7 50,4 52,3

2007 2008 2009 2010 2011 2012 (forecast) 30 25 20 15 10 5 0 2009

50.4

40.8

9.5

23 24

2010

52.3

40.6

11.3

28

2011

76.4

47.2

10.9

23 16

Loss ratio, %

28 23

2012 (forecast)

82.8

32.5

7,6 23 23 23

OUR PORTFOLIO STRUCTURE

Liability 5.7% Property 9.8% Inward Reinsurance 4.7% Cargo 2.0% Casualty and Medical 0.3% Motor 10.5% CAR/EAR 67.0%

*information as for 2011 year results

CAR/EAR INSURANCE

We are proud of our engineering risks portfolio and effective cooperation with our clients. JSIC «GEFEST» provides reliable insurance and reinsurance protection for the most famous and complex construction projects in Russia

CAR/EAR PORTFOLIO

Power industry 6% Communications 8% Buildings 13% Hydrotechnical objects 1% Airports, runways 1% Tunnels 23% Roads 21%

*info as at October 2012

Bridges 27%

ENGINEERING ACCOUNT - LARGEST CAR PROJECTS

Project Location

Construction of Sochi central motor highway «Kurortniy prospect alternate route», 2 nd and 3 rd stages Construction of a segment of Doubler (parallel access road) to Kurortniy Prospekt M-27 Dzhubga-Sochi Federal Highway Construction of the federal highway M-27 Djubga-Sochi to the border with Geoorgia on section Adler-Veseloye Building of the southern site of Western High-speed Diameter from traffic interchange on crossing with the Ring highway around St. Petersburg to a traffic interchange on Kanonersky island Construction of highway from mountain resort «Alpica-Sevice» to finish area of ski resort «Roza-Hutor». Arrangement of approaches to toboggan route, freestyle center, snowboard park and Mountain Olympic village Sochi Sochi Sochi St. Petersburg Sochi

Sum Insured, USD mln

1 900

PML, % from SI

9% 703 400 382 358 30% 28% 20% 27%

ENGINEERING BUSINESS – LARGEST CLAIMS

Date of Loss Loss Description

14.12.2009

Sochi cargo port construction damage by severe storm

Class of Ins

CAR 10.07.2003

Collapse to the tunnel in construction with the possible damage to the underground services CAR 06.02.2008

Destruction of temporary lining and soilflow in callote part of tunnel during temporary lining partition CAR 02.01.2009

Destruction of three construction cranes due to a construction site fire CPM 19.10.2010

Due to soil subsidence (deformation) on approach embankment the traffic interchange was damaged and deformated CAR

Sum Insured, USD mln

105,7 272,9 134,2 2,4 191,5

Loss amount, USD mln

17,0 3,5 2,1 1,8 1,1

OUR TREATIES

CAR/EAR treaty (with indirect section)

Type: excess of loss reinsurance Base: losses occurring during 1 calendar year w.e.f. 01/01/2012 Total capacity: 100 mln USD on SI/PML basis Structure: 1st Layer: 3.3 mln USD in excess of 700 000 USD 2nd Layer: 6 mln USD in excess of 4 mln USD 3rd Layer: 90 mln USD in excess of 10 mln USD Leader: Swiss Re.

Placed via brokers: Challenge Group Ink and RIFAMS IB

Property treaty (with indirect section)

Type: excess of loss reinsurance Base: losses occurring during 1 calendar year w.e.f. 01/05/2012 Total capacity: 10 mln USD SI/PML/Loss limit basis Structure: 1st layer: 3 mln USD in excess of 300 000 USD 2nd layer: 6.7 mln USD in excess of 3.3 mln USD

OUR TREATIES

Motor hull treaty

Type: excess of loss reinsurance Base: risk attaching with effect from 01/04/2012 Total capacity: 1.33 mln USD Structure: 1st layer: 280 000 USD in excess of 50 000 USD 2nd layer: 1.0 mln USD in excess of 330 000 USD

Cargo treaty

Type: excess of loss reinsurance, commencement date 01.07.2012

Total capacity: 3.33 mln USD Reinsured`s self retention: 100 000 USD

Self-regulated organizations liability treaty

Type: excess of loss reinsurance, commencement date 01.01.2012 Total capacity: 3.33 mln USD Reinsured`s self retention: 165 000 USD

INWARD REINSURANCE. FAC + TREATIES

2011. Total written premium – 3,6 mlm USD CPM Cargo Other Personal accident Liability Motor hull CAR/EAR Property 1st half of 2012. Total written premium – 1,5 mln USD Other CPM Personal accident Motor hull Cargo Liability Property Liability of Exploiters of hazardous Objects CAR/EAR

REINSURANCE TEAM

Vladimir Chubukov

The First deputy General Director, in charge of reinsurance

Grigory Vinogradov

Head of Reinsurance department

Elena Orlova

Deputy Head of Reinsurance department Treaties

Denis Nikolaicev

Chief underwriter of Reinsurance department Engineering risks

Thank you for attention!

Any questions?

GEFEST Reinsurance Team [email protected]