Transcript Слайд 1 - Unity Re Ltd.

DEVELOPMENT OF RUSSIAN INWARD
REINSURANCE CAPACITY FOR
OVERSEAS BUSINESS
Dmitry Garmash
Director, Ph.D.
International Business Dept.
Unity Re Ltd.
30th March, 2007г.
President-Hotel, Moscow
For 2006 г. in Russia:
• Gross premium written in non-life insurance – $22,29 billion
23,1%
• Gross premium written in inward R/I – $3,05 billion
20,2%
• Inward R/I / direct insurance – 13,7%
20
250
198
Million US$
200
185
196
160
18
16
14
GPW - inward
overseas
reinsurance
12
150
10 (%)
8
100
50
5.3
5.9
6.4
5.3
6
4
2
0
0
2003
2004
2005
2006
• Overseas inward R/I share = 6,4% - about $196 million.
• 20-25% annual increase in inward R/I from overseas for
last 2 years
Share in overall
GPW inward
resinsurance
Basic factors of inward R/I increase for today and for next 1-2 years:
•
(re)insurers’ capital raise and enhancement + treaty coverage
widening
•
domestic market strength & narrowness  search for new
business sources
•
expand of brokers’ geographical scope since 2004
•
insurance cycle phaze  demand for alternative markets
•
stable demand for R/I coverage from emerging markets – Asia,
Africa, Central & South America
Direction of inward R/I from overseas (cedants, GPW):
• close markets (CIS, Baltia, CEE)
• markets of stable cooperation (S.-E. Asia, Arabian region)
• markets of growing cooperation (America, Africa)
75%
11%
1%
3%
10%
Quantitative aspects of inward R/I from overseas to Russia:
• regional difference in class structure
• basic classes: Property, Energy, Marine hull
• main channels: broker-reinsurer; broker-broker-reinsurer
• support for large global placements (>1 brokers, relatively small
participation shares)
• “low-liquidity” risks placement (old brown-water fleets; risky
single vessels, dangerous productions, under-market
terms&conditions, dangerous territories)
Main market players dealing with R/I from overseas (professional
reinsurers, insurers and brokers):
• Ingosstrakh
• Malakut
• Unity Re
• Rifams
• Kapital Re
• Scanmarine
• Moscow Re
• Benfield
• Moscow IC
• PWS
• SOGAZ
• AFM
• Rossiya
• Oakeshott
• Transsib Re
Estimated R/I capacity for overseas business:
Class
Foreign business,
Million US$
Foreign business with
Russian and formerUSSR interest,
Million US$
Property
25
400
Energy
15
200
CAR/EAR/MB
20
250
Marine Hull
50
120
Cargo
50
100
Aviation Hull
5
35
Development barriers:
• ratings and relative legislation
• regional borders
• available capacity
• incoming risks quality
• plecement terms & conditions
• global role of broker (documentary, payments, adjusting)
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
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: [email protected]