CONCOLIDATED FINANCIAL STATEMENTS BRIEF ANALYSIS OF INSURANCE COMPANIES ACCORDING TO IFRS

Transcription

1 CONCOLIDATED FINANCIAL STATEMENTS BRIEF ANALYSIS OF INSURANCE COMPANIES ACCORDING TO IFRS

2 Performance of insurance companies (according to IFRS) The term within which the Russian insurance companies had to publish their first Financial Statements (FS) prepared in accordance with International Financial Reporting Standards (IFRS) expired on May 30, Insurance companies were put under severe conditions - the companies had to implement IFRS within one year and to report to the supervisory authorities just one month after the Russian Accounting Standards (RAS) reporting date. However, most insurance companies managed to respond to this challenge. For sure, IFRS Financial Statements are a new and interesting source of information about domestic insurance market. However, due to the fact that IFRS information presentation is less formalized than the one in accordance with RAS, some experience is still needed to read and compare Financial Statements of different companies. Our experts have analyzed the FS of different insurance companies, and today we present a brief analysis of financial performance of the leading insurance companies based on information from consolidated financial statements prepared in accordance with IFRS. For analysis of data we selected the 20 largest insurance companies 1 as well as performed a sample of 23 "second tier" companies. We reconciled the data and on its basis calculated the most commonly used ratios. The calculation method can be found in Appendix. In addition, we released a new web content which contains Financial Statements of insurance companies. Here placed the links to the Section with IFRS Financial Statements on the official web sites of insurance companies. Currently there are more than 150 companies, the list will be continuously updated and replenished. We would like to remind you our official web site Market leaders in terms of Insurance s and claims paid Position Company s/ s Insurance s, mln RUR Insurance claims paid, mln RUR (change) Growth Growth 1 (-) Rosgosstrakh, , ,9 111,6% , ,8 99,5% 2 (-) SOGAZ INSURANCE, , ,3 137,5% , ,5 137,5% 3 (-) Ingosstrakh, , ,0 130,7% , ,0 97,0% 4 (-) RESO-GARANTIA, , ,3 115,6% , ,1 124,1% 5 (-) AlfaStrakhovanie, , ,0 123,2% , ,0 112,0% 6 (-) VSK, , ,8 112,7% , ,1 96,6% 7 (-) Allianz, , ,5 115,8% , ,9 108,3% 8 (+5) VTB Insurance, LLC , ,4 269,8% 7 231, ,0 373,7% 9 (-1) MSK, , ,2 100,2% , ,5 123,0% 10 (-1) Renaissance, , ,1 125,3% , ,1 156,1% 11 (-1) MAKC, , ,3 127,0% 9 497, ,0 125,1% 12 (-1) UralSib,CJSC , ,7 115,1% 6 924, ,6 109,6% Insurance 13 (-1) ZHASO, , ,9 108,3% 8 297, ,1 108,4% 14 (-) Kapital Insurance, , ,3 138,4% 2 760, ,1 72,8% JSC 15 (+2) Zurich, 8 632, ,1 125,0% 4 557, ,0 129,4% 16 (-) TRANSNEFT, 8 627, ,6 117,2% 3 856, ,4 159,8% 17 (-2) GUTA-Insurance, 7 965, ,1 108,0% 4 090, ,2 117,6% 18 (-) ENERGOGARANT, 7 824, ,6 130,5% 2 876, ,7 118,1% 19 (-) Aliko, CJSC 7 763, ,1 137,3% 1 616, ,1 113,3% 20 (+5) PPF General Insurance, LLC 5 306, ,9 217,9% 75,1 1,7 4362,9% This table reflects insurance s and claims paid. Top-20 insurance companies haven t changed much in terms of IFRS Financial Statements for the year Among them there is only one insurance company ranked to the second twenty companies in VTB Insurance. The second twenty companies are subject to greater fluctuations in the ranking in terms of written insurance s. The average growth of written insurance s out of the Top-20 companies amounted to 33.4%, for the second twenty companies %. The first and the second twenty companies showed the same average growth rate of insurance claims paid by 17%, excluding companies where insurance claims paid increased by more than twice. 1 Out of companies, which FS are accessible through the Internet as at the analysis date

3 Leaders in terms of Profitability Position (change) Company s/ s Net profit (loss), mln RUR Profitability level Growth , ,06 163,2% 23,3% 19,2% 1 (-) SOGAZ INSURANCE, 2 (-) Rosgosstrakh, 7 016, ,06 193,9% 10,2% 5,1% 3 (-) RESO-GARANTIA, 5 033, ,88 140,1% 13,9% 11,8% 4 (+2) VTB Insurance, LLC 4 865, ,74 260,9% 32,1% 38,2% 5 (-1) Ingosstrakh, 2 772, ,00 102,9% 5,7% 8,5% 6 (+3) Aliko, CJSC 1 446,84 490,05 295,2% 23,6% 10,6% 7 (+1) TRANSNEFT, 1 353, ,38 127,3% 25,5% 25,7% 8 (+2) MAKC, 768,37 310,14 247,7% 6,5% 3,6% 9 (-2) Kapital Insurance, JSC 685, ,23 57,7% 25,1% 29,4% 10 (+5) AlfaStrakhovanie, 436,00-342,00-3,2% 0,0% 11 (+3) PPF General Insurance, 195,41-283,03-11,2% 20,4% LLC 12 (-1) ZHASO, 193,98 235,01 82,5% 2,4% 3,2% 13 (+5) Renaissance, 157,99-761,63-1,5% -6,4% 14 (+5) VSK, 112,53-950,81-0,7% -4,5% 15 (-2) ENERGOGARANT, 69,72 48,21 144,6% 2,0% 1,7% 16 (-4) UralSib,CJSC Insurance 58,41 65,92 88,6% 0,9% 1,2% 17 (-1) Allianz, -261,75-429,41 61,0% -0,6% -1,3% 18 (+2) Zurich, -804, ,43 74,3% -13,2% -15,4% 19 (-2) GUTA-Insurance, -960,09-511,37 187,7% -13,1% -9,4% 20 (-15) MSK, , , ,5% 21,1% This table reflects net profit (loss) as well as profitability level (ratio of financial result to s). The majority of Top-20 companies demonstrated net profit growth for the year The average growth amounted to 86%. Some insurers managed to break even in 2012, compared to net losses for the year Generally, the number of loss-making companies from the Top-20 in terms of insurance s reduced to four in 2012, compared to seven in The average profitability level of Top-20 break-even companies accounted for 11.7% in 2012, against 12.8% in When analyzing these figures it should be kept in mind that the groups in addition to the insurance business often consolidate banks, management companies as well as funds under their management. Information concerning insurance groups performance is presented in analytical tables below.

4 Position (change) Company s/ s Combined ratio Leaders in terms of Break-even Loss ratio acquisition costs operating expenses (-) VTB Insurance, LLC 72,3% 63,9% 56,4% 36,8% 3,4% 6,4% 12,5% 20,7% 2 (+1) TRANSNEFT, 86,6% 83,3% 60,0% 59,1% 0,6% -0,1% 26,0% 24,3% 87,9% 88,0% 68,0% 68,6% 6,2% 4,6% 13,6% 14,8% 3 (+1) SOGAZ INSURANCE, 1 4 (-2) PPF General 94,1% 81,8% 0,9% -1,2% 86,7% 79,2% 6,5% 3,8% Insurance, LLC 5 (+1) RESO-GARANTIA, 97,1% 96,4% 60,7% 61,2% 22,4% 22,4% 14,0% 12,7% 6 (+1) Rosgosstrakh, 97,5% 99,6% 56,0% 56,3% 13,4% 15,4% 28,2% 28,0% 7 (+2) AlfaStrakhovanie, 98,0% 100,8% 51,3% 53,5% 28,4% 25,6% 18,3% 21,7% 1 8 (+2) Aliko, CJSC 2 98,4% 101,6% 51,5% 57,8% 36,5% 31,0% 10,4% 12,8% 9 (+4) MAKC, 3 99,2% 102,7% 80,0% 75,9% 7,3% 11,2% 12,0% 15,6% 10 (-5) Ingosstrakh, 1 99,3% 96,3% 61,3% 58,0% 14,7% 12,4% 23,2% 25,9% 11 (-3) ZHASO, 4 101,1% 99,8% 73,8% 71,6% 10,2% 11,0% 17,1% 17,2% 12 (+4) VSK, 103,0% 106,8% 58,3% 61,2% 23,4% 21,9% 21,3% 23,8% 13 (-1) Allianz, 1 103,1% 102,5% 60,6% 60,4% 33,2% 31,4% 9,3% 10,7% 14 (+3) Renaissance, 103,3% 109,9% 65,5% 66,8% 20,5% 21,2% 17,2% 21,8% 15 (-) ENERGOGARANT, 104,7% 105,4% 56,0% 56,4% 32,1% 30,6% 16,6% 18,4% 16 (-2) UralSib,CJSC 104,7% 103,1% 60,5% 61,2% 14,9% 15,1% 29,3% 26,7% Insurance 17 (+3) Zurich, 116,8% 121,4% 59,1% 48,2% 18,3% 14,9% 39,4% 58,4% 18 (+1) MSK, 119,0% 118,1% 70,0% 69,9% 25,8% 21,3% 23,1% 26,9% 19 (-1) GUTA-Insurance, 20 (-9) Kapital Insurance, JSC 119,3% 115,1% 67,7% 63,2% 23,6% 22,4% 28,0% 29,5% 125,7% 102,4% 66,4% 61,5% 5,8% 1,4% 53,5% 39,5% The following are more universal indicators - the loss ratio, the acquisition costs ratio and operating expenses ratio, and the combined ratio. All ratios were calculated less share ceded to reinsurers. The amount of insurance used by calculation of ratios was reduced by the impairment costs of insurance receivables. Considering the fact that insurance groups publish consolidated Financial Statements, it is quite difficult to evaluate operating expenses which directly relate to insurance business, unless it is stated in the Financial Statements. In such cases, we assume operating expenses as operating expenses less other income. Furthermore, insurance companies often categorize costs differently. For example, some insurance companies classify contributions to Russian Association of Motor Insurers from written compulsory motor TPL insurance s within acquisition costs, another within operating expenses, while some companies within other expenses. We have recognized them as acquisition costs. We have also decreased insurance claims by the amount of subrogation income as well as salvage. The combined ratio calculated for the Top-20 companies was 101.6% on average compared to 99.9% for the year Among Top-20 companies twelve companies worsened their financial performance, while eight of them improved. The 'second tier' companies demonstrated a bigger spread of the combined ratio - from 24 to 164%. The loss rate of half of the Top-20 companies decreased. However, the majority of companies showed this rate stability from year to year. The average rate of market leaders for the year 2012 accounted for 59.2%, for the year %. The average level of acquisition costs of market leaders amounted to 21.4% against 20.0% for the year companies out of Top-20 demonstrated cost growth. At the same time operating expenses decreased the market leaders demonstrated average decline up to 21.0% compared to 22.7% for the year Here the opposite is the case: 14 companies demonstrated decline and only 6 - growth. The rate ranged from 6.5 to 53.5%. 1 taken into account administrative expenses solely from insurance operations on the basis of information disclosed in the Financial Statements 2 80% of the Company s written insurance s come from life insurance 3 administrative expenses are accounted for less fee and commission income from compulsory medical insurance operations 4 costs to finance preventive measures are included into acquisition costs

5 Leaders in terms of Capitalization Position (change) Company s/ s Net assets, mln RUR capitalization Growth , ,02 129,0% 47,9% 45,8% 1 (-) SOGAZ INSURANCE, 2 (-) Ingosstrakh, , ,00 114,5% 20,6% 35,2% 3 (-) Rosgosstrakh, , ,88 132,4% 22,7% 18,2% 4 (-) RESO-GARANTIA, , ,56 134,9% 26,8% 21,7% 5 (-) Kapital Insurance, JSC 8 631, ,65 108,6% 58,4% 70,6% 6 (-) Allianz, 8 174, ,45 139,0% 28,7% 22,2% 7 (+6) VTB Insurance, LLC 6 664, ,17 170,9% 53,7% 68,8% 8 (-1) TRANSNEFT, 5 969, ,19 121,9% 86,4% 88,9% 9 (+3) Aliko, CJSC 5 964, ,07 144,5% 43,1% 35,9% 10 (+5) Renaissance, 5 216, ,79 139,9% 36,1% 22,7% 11 (-2) AlfaStrakhovanie, 5 167, ,00 109,8% 12,1% 14,6% 12 (+2) VSK, 5 117, ,54 136,7% 17,3% 15,8% 13 (-3) MAKC, 4 776, ,99 110,4% 26,3% 24,0% 14 (-6) MSK, 4 702, ,36 99,4% 22,6% 20,9% 15 (-4) UralSib,CJSC Insurance 4 223, ,26 102,2% 41,1% 48,2% 16 (-) ZHASO, 3 457, ,12 98,7% 60,2% 68,2% 17 (-) ENERGOGARANT, 3 132, ,44 103,3% 49,3% 61,8% 18 (-) GUTA-Insurance, 1 993, ,69 101,8% 22,6% 25,5% 19 (-) Zurich, 1 975, ,40 134,8% 24,0% 18,6% 20 (-) PPF General Insurance, LLC 1 062,63 708,60 150,0% 18,5% 29,2% This table shows the change in net assets value as well as the change in the ratio of equity to liabilities of the analyzed companies - the level of capitalization. Among market leaders in terms of net assets, the majority of companies demonstrated growth. It accounted for around 27% relative to net assets for the year In general, the growth in insurance s exceeded the growth in net assets of the Top-20 companies. This explains the slight decrease in the average level of the companies capitalization for the year 2012, which amounted to 36.2% against 37.8% for the year It s interesting, that the level of capitalization of the 'second tier' companies remained higher than the one of the Top-20 but at the same time the level of capitalization of only a few 'second tier' companies remained below the average one of Top-20 companies. Other ratios We have also calculated a few other ratios. Their analysis can be found in the tables below. The most interesting results are as follows. The average reinsurers' share of s of the Top-20 companies amounted to 11.4%, of the rest selected companies %. Reinsurers' share of losses incurred of the Top-20 companies amounted to 8.7%, of the 'second tier companies %. The average level of investment income related to s of the Top-20 companies amounted to 7.1% against 4.1% of the rest companies. investment assets of the Top-20 companies exceeded the one of the 'second tier' companies: 5.9% and 3.9%, respectively. The average level of investments needed to support liabilities of the Top-20 companies accounted for 86.9%, of the 'second tier companies %.

6 Table 1. Main performance indicators of selected companies based on IFRS Financial Statements, 2012 Company s/ s Type of business 6 Written insurance s, Insurance claims, Net assets,. Net profit/loss for the period, Reinsurers share of Reinsurers' share of losses incurred Loss rate - net acquisition costs - net operating expenses Combined ratio - net investment income related to s investment assets net assets needed to support liabilities (gearing ratio) investments needed to support liabilities 1 Rosgosstrakh, I ,0% 4,3% 56,0% 13,4% 28,2% 97,5% 4,5% 10,2% 5,6% 22,7% 62,9% 2 SOGAZ INSURANCE, I, LI, СHI, ,3% 3,9% 68,0% 6,2% 13,6% 87,9% 11,5% 23,3% 8,8% 47,9% 94,3% IA, AM, RE, IS 3 Ingosstrakh, I, LI, HI, ,6% 5,5% 61,3% 14,7% 23,2% 99,3% 7,0% 5,7% 4,9% 20,6% 87,3% MS, B, AS 4 RESO-GARANTIA, I, LI, IA, RE ,7% 4,8% 60,7% 22,4% 14,0% 97,1% 10,4% 13,9% 8,0% 26,8% 79,2% 5 AlfaStrakhovanie, I, LI, MS, ,1% 6,0% 51,3% 28,4% 18,3% 98,0% 3,7% 3,2% 6,0% 12,1% 54,6% IA, IS 6 VSK, I, HI ,1% 5,0% 58,3% 23,4% 21,3% 103,0% 4,0% 0,7% 7,1% 17,3% 66,2% 7 Allianz, I, LI, HI, ( ) 13,4% 0,6% 60,6% 33,2% 9,3% 103,1% 2,8% -0,6% 3,6% 28,7% 63,6% AM 8 VTB Insurance, LLC I ,2% 1,7% 56,4% 3,4% 12,5% 72,3% 4,4% 32,1% 7,9% 53,7% 118,2% 9 MSK, I, AM, IS ( ) 3,1% -1,8% 70,0% 25,8% 23,1% 119,0% -8,2% -28,5% -10,3% 22,6% 68,2% 10 Renaissance, I ,7% -3,0% 65,5% 20,5% 17,2% 103,3% 6,2% 1,5% 7,2% 36,1% 99,9% 11 MAKC, I, СHI ,6% 1,5% 80,0% 7,3% 12,0% 99,2% 5,4% 6,5% 6,3% 26,3% 72,8% 12 UralSib,CJSC I ,3% 0,1% 60,5% 14,9% 29,3% 104,7% 6,4% 0,9% 7,1% 41,0% 109,0% Insurance 13 ZHASO, I, LI ,6% -0,1% 73,8% 10,2% 17,1% 101,1% 3,3% 2,4% 7,1% 60,2% 95,5% 14 Kapital Insurance, JSC I ,2% 28,9% 66,4% 5,8% 53,5% 125,7% 25,3% 25,1% 7,1% 58,4% 81,6% 15 Zurich, I ( ) 14,6% 16,1% 59,1% 18,3% 39,4% 116,8% 4,3% -13,2% 5,1% 24,0% 76,2% 16 TRANSNEFT, I, LI ,6% 11,9% 60,0% 0,6% 26,0% 86,6% 12,3% 25,5% 8,4% 86,4% 158,1% 17 GUTA-Insurance, I ( ) 3,9% 1,6% 67,7% 23,6% 28,0% 119,3% 5,8% -13,1% 6,9% 22,6% 78,1% 18 ENERGOGARANT, I, IA ,2% 8,3% 56,0% 32,1% 16,6% 104,7% 7,1% 2,0% 7,2% 49,3% 93,0% 19 Aliko, CJSC I ,4% 3,8% 51,5% 36,5% 10,4% 98,4% 22,2% 23,6% 9,6% 43,0% 139,3% 20 PPF General I ,7% 75,1% 0,9% 86,7% 6,5% 94,1% 4,2% 11,2% 5,2% 18,5% 40,5% Insurance, LLC 21 Surgutneftegas, I, LI ( ) 9,0% 3,6% 78,8% 14,4% 14,0% 107,1% 5,5% -3,6% 11,6% 35,6% 68,4% 22 Cardif Insurance I ,8% 0,7% 23,3% 46,9% 11,4% 81,7% 7,5% 13,4% 5,7% 20,2% 83,5% Company, LLC 23 National Insurance, I, LI, FI ,4% -0,6% 56,2% 17,2% 27,2% 100,6% 0,0% 2,1% 0,0% 41,7% 88,9% 6 Type of business: I insurance, HI health insurance, LI life insurance, IA - investment activity, RE real estate, AM asset management, CHI - compulsory health insurance, PP pension protection, AS assistance services, MS medical services, B - banking, IS - intermediary services, FI - financial intermediation

7 Table 1. Main performance indicators of selected companies based on IFRS Financial Statements, 2012 (continued) Company s/ s Type of business Written insurance s, Insurance claims, Net assets,. Net profit/loss for the period, Reinsurers share of Reinsurers' share of losses incurred Loss rate - net acquisition costs - net operating expenses Combined ratio - net investment income related to s investment assets net assets needed to support liabilities (gearing ratio) investments needed to support liabilities 24 Respect-Polis, LLC I ,7% 19,7% 18,6% 94,2% 5,4% 118,1% 0,4% 3,1% 0,2% 32,5% 71,6% 25 BIN Insurance, LLC I ( ) 4,9% 0,3% 76,0% 19,8% 48,6% 144,4% -2,9% -53,6% -2,3% 63,1% 110,0% 26 AIG, CJSC I ,4% -0,3% 37,4% 15,4% 49,9% 102,7% 8,7% 11,9% 6,0% 56,0% 100,0% 27 ORANTA, LLC I ( ) 4,5% 1,4% 65,9% 18,4% 46,4% 130,8% 4,6% -26,2% 5,4% 71,5% 84,9% 28 Pomosch, I ,9% 29,3% 30,2% 60,0% 24,5% 114,7% 0,4% 10,9% 0,1% 34,7% 72,7% 29 Chulpan, I, LI, HI, ,6% 1,7% 70,9% 4,7% 16,9% 92,5% 18,0% 25,1% 9,6% 147,4% 207,1% MS 30 NASKO, JSC I (43 907) 25,4% 6,9% 73,1% 10,7% 24,2% 107,9% 6,2% -3,9% 4,3% 66,0% 114,5% 31 Gefest, CJSC I ,7% 20,6% 26,2% 30,4% 29,0% 85,6% 1,4% 4,3% 3,4% 55,0% 37,5% 32 OSK Insurance, CJSC I (10 127) 7,8% 1,6% 54,5% 32,2% 17,5% 104,2% 3,6% 0,1% 5,1% 48,9% 105,2% 33 Kupecheskoe, LLC I ( ) ,1% 0,1% 57,6% 18,0% 3,6% 79,2% 0,6% 21,2% 0,3% 55,9% 148,2% 34 Liberty Insurance, I, AS (22 994) 6,5% 4,6% 58,8% 14,7% 46,6% 120,1% 3,6% -16,0% 5,7% 63,2% 108,2% 35 Euro-Policy, I ,2% 12,3% 47,0% 14,4% 29,1% 90,5% 4,1% 4,7% 5,6% 53,9% 78,0% 36 Independent I ,2% 2,0% 9,4% 3,3% 10,9% 23,6% 1,3% 77,7% 2,0% 252,8% 303,0% Insurance group, LLC 37 EMERGENCY I ,2% 0,3% 73,3% 2,2% 9,5% 85,0% 5,1% 19,3% 6,5% 141,8% 227,1% INSURANCE COMPANY, JSC 38 Yakor, JSC I ,6% 4,4% 65,3% 16,7% 9,1% 91,1% 2,1% 3,1% 1,6% 62,0% 86,6% 39 Aktiv Insurance, LLC I ,5% 101,6% -0,1% 19,6% 8,5% 28,1% 2,8% 1,6% 1,1% 56,6% 100,7% 40 Otkritie, JSC I ,2% -2,9% 46,1% 32,4% 19,1% 97,6% 3,8% 7,3% 3,3% 80,8% 132,9% 41 IF, CJSC I ,3% 32,9% 56,3% 26,4% 26,9% 109,6% 1,6% 1,6% 4,6% 32,3% 53,3% 42 INTOUCH INSURANCE, I ( ) 0,2% 0,1% 71,0% 54,7% 38,2% 164,0% 4,8% -60,6% 3,4% 60,1% 120,1% OJSC 43 ALROSA, LLC I ,3% 6,7% 58,6% 1,6% 39,3% 99,5% 11,2% 11,8% 7,2% 208,7% 202,7%

8 Table 2. Main performance indicators of selected companies based on IFRS Financial Statements, 2011 Company s/ s Type of business Written insurance s, Insurance claims, Net assets,. Net profit/loss for the period, Reinsurers share of Reinsurers' share of losses incurred Loss rate - net acquisition costs - net operating expenses Combined ratio - net investment income related to s investment assets net assets needed to support liabilities (gearing ratio) investments needed to support liabilities 1 Rosgosstrakh, I ,1% 6,3% 56,3% 15,4% 28,0% 99,6% 3,7% 5,1% 4,4% 18,2% 63,5% 2 SOGAZ INSURANCE, I, LI, СHI, ,8% 5,6% 68,6% 4,6% 14,8% 88,0% 7,0% 19,2% 4,7% 45,8% 94,1% IA, AM, RE, IS 3 Ingosstrakh, I, LI, HI, ,7% 30,5% 58,0% 12,4% 25,9% 96,3% 4,5% 8,5% 3,8% 35,2% 76,9% MS, B, AS 4 RESO-GARANTIA, I, LI, IA, RE ,4% 1,2% 61,2% 22,4% 12,7% 96,4% 9,7% 11,8% 6,3% 21,7% 84,8% 5 AlfaStrakhovanie, I, LI, MS, ( ) 21,0% -0,2% 53,5% 25,6% 21,7% 100,8% 2,8% 0,0% 4,0% 14,6% 53,8% IA, IS 6 VSK, I, HI ( ) 5,1% -0,4% 61,2% 21,9% 23,8% 106,8% 2,3% -4,5% 4,2% 15,8% 58,7% 7 Allianz, I, LI, HI, ( ) 8,4% 6,4% 60,4% 31,4% 10,7% 102,5% 1,9% -1,3% 2,2% 22,2% 65,9% AM 8 MSK, I, AM, IS ,8% 3,8% 69,9% 21,3% 26,9% 118,1% 38,9% 21,1% 40,2% 20,9% 74,6% 9 Renaissance, I ( ) 3,3% 28,5% 66,8% 21,2% 21,8% 109,9% 1,8% -6,4% 1,8% 22,7% 75,2% 10 MAKC, I, СHI ,1% 1,3% 75,9% 11,2% 15,6% 102,7% 4,9% 3,6% 4,4% 24,0% 70,6% 11 UralSib,CJSC I ,4% 0,8% 61,2% 15,1% 26,7% 103,1% 5,6% 1,2% 5,8% 48,2% 118,4% Insurance 12 ZHASO, I, LI ,9% 2,0% 71,6% 11,0% 17,2% 99,8% 2,8% 3,2% 5,6% 68,2% 103,0% 13 VTB Insurance, LLC I ,6% 20,0% 36,8% 6,4% 20,7% 63,9% 2,4% 38,2% 2,3% 68,8% 113,6% 14 Kapital Insurance, JSC I ,2% 44,4% 61,5% 1,4% 39,5% 102,4% 19,7% 29,4% 7,0% 70,6% 105,7% 15 GUTA-Insurance, I ( ) 4,2% 2,1% 63,2% 22,4% 29,5% 115,1% 5,1% -9,4% 5,0% 25,5% 76,9% 16 TRANSNEFT, I, LI ,7% 8,6% 59,1% -0,1% 24,3% 83,3% 9,4% 25,7% 5,6% 88,9% 158,4% 17 Zurich, I ( ) 23,3% 42,5% 48,2% 14,9% 58,4% 121,4% 4,2% -15,4% 3,8% 18,6% 69,6% 18 ENERGOGARANT, I, IA ,6% 2,1% 56,4% 30,6% 18,4% 105,4% 6,8% 1,7% 6,0% 61,8% 101,5% 19 Aliko, CJSC I ,1% 2,0% 57,8% 31,0% 12,8% 101,6% 11,0% 10,6% 4,0% 35,9% 131,0% 20 Surgutneftegas, I, LI ( ) 9,2% 4,9% 77,8% 18,4% 15,7% 111,9% 3,7% -8,0% 6,7% 43,6% 69,9% 21 National Insurance I, LI, FI ,2% 2,5% 56,1% 15,6% 28,6% 100,4% 5,4% 3,7% 2,9% 44,2% 93,5%, 22 ORANTA, LLC I ( ) 2,7% 1,7% 73,9% 19,9% 43,1% 136,9% 4,4% -34,1% 5,7% 57,7% 84,5% 23 BIN Insurance, LLC I ( ) ( ) 3,2% 0,1% 48,6% 15,3% 33,6% 97,5% -7,4% -20,9% -7,0% -4,1% 65,9% 24 Cardif Insurance Company, LLC I ,1% 0,1% 22,8% 44,0% 14,5% 81,4% 5,0% 9,2% 2,6% 23,9% 81,0%

9 Table 2. Main performance indicators of selected companies based on IFRS Financial Statements, 2011 (continued) Company s/ s Type of business Written insurance s, Insurance claims, Net assets,. Net profit/loss for the period, Reinsurers share of Reinsurers' share of losses incurred Loss rate - net acquisition costs - net operating expenses Combined ratio - net investment income related to s investment assets net assets needed to support liabilities (gearing ratio) investments needed to support liabilities 25 PPF General I ,8% 645,7% -1,2% 79,2% 3,8% 81,8% 2,2% 20,4% 2,4% 29,2% 58,6% Insurance, LLC 26 AIG, CJSC I (5 152) 56,5% 44,7% 45,4% 13,8% 51,6% 110,8% 9,0% 3,5% 5,4% 43,6% 87,2% 27 Gefest, CJSC I ,5% 17,8% 23,9% 33,5% 27,0% 84,4% 1,9% 1,8% 3,4% 47,0% 40,4% 28 Chulpan, I, LI, HI, ,9% 1,5% 69,6% 4,9% 15,8% 90,2% 17,6% 26,8% 8,4% 100,7% 170,6% MS 29 Pomosch, I (3 115) 58,9% -11,8% 51,8% 62,1% 14,6% 128,5% 1,4% -11,9% 0,4% 21,2% 64,4% 30 Respect-Polis, LLC I ,2% 55,0% 20,3% 77,1% 2,9% 100,4% 0,0% 2,1% 0,0% 53,7% 85,5% 31 NASKO, JSC I ,0% 12,4% 77,2% 6,3% 18,9% 102,3% 5,0% 2,7% 3,6% 76,6% 137,4% 32 Liberty Insurance, I, AS ( ) ( ) 25,1% 26,9% 54,7% 7,9% 64,6% 127,2% -0,5% -24,1% -1,2% -21,3% 26,9% 33 Yakor, JSC I (65 435) 33,3% 11,5% 65,4% 15,4% 8,6% 89,4% 1,3% -5,3% 1,3% 60,0% 84,7% 34 OSK Insurance, CJSC I (67 491) 8,7% -0,4% 60,1% 35,1% 21,8% 117,0% 3,5% -7,6% 3,7% 58,1% 109,3% 35 Independent I ,0% 14,2% 9,9% 0,0% 12,7% 22,7% 4,5% 81,8% 4,8% 183,3% 226,6% Insurance group, LLC 36 Aktiv Insurance, LLC I (1 959) 52,0% 88,6% 0,3% 54,7% 9,7% 64,7% -1,3% 1,4% -0,8% 51,6% 90,5% 37 Kupecheskoe, LLC I ,0% 0,0% 51,4% 5,5% 2,9% 59,7% -0,8% 39,5% -0,3% 28,9% 121,5% 38 Euro-Policy, I ,5% 4,8% 49,9% 11,0% 51,0% 111,9% 6,5% 7,3% 4,0% 107,5% 142,8% 39 IF, CJSC I (8 283) 21,1% 23,7% 68,5% 3,9% 32,5% 104,9% 2,6% -1,7% 5,7% 54,2% 76,7% 40 Otkritie, JSC I (48 002) 23,8% 8,0% 66,3% 17,4% 18,0% 101,7% 0,1% -12,4% 0,1% 127,8% 175,0% 41 INTOUCH INSURANCE, I ( ) 0,3% 0,0% 83,6% 94,0% 50,1% 227,7% 4,0% -121,6% 2,4% 31,0% 89,0% OJSC 42 ALROSA, LLC I ,7% 7,2% 53,7% 2,1% 41,1% 96,9% 6,9% 6,4% 3,9% 273,2% 241,2% 43 EMERGENCY INSURANCE COMPANY, JSC I (38 421) 4,8% 0,3% 89,9% 5,4% 39,0% 134,3% 15,9% -5,5% 8,0% 267,1% 309,2%

10 Appendix. Description of the analyzed ratios Written insurance s - written insurance s less insurance contracts cancelled/terminated. Insurance claims - the amount of insurance claims, adjusted by the amount of loss settlement expenses less subrogation recoveries. Reinsurers share of - ratio of reinsurers share of to total. Reinsurers' share of losses incurred - ratio of reinsurers' share of losses incurred to total losses incurred. The loss rate - ratio of losses incurred, net of reinsurance, to, net of reinsurance. The level of acquisition costs - ratio of acquisition costs, net of reinsurance, to, net of reinsurance. The level of operating expenses - ratio of administrative costs to, net of reinsurance. The combined ratio sum of ratios: the loss rate, the level of acquisition costs and the level of operating expenses. The level of investment income related to s - ratio of return on investment activity to, net of reinsurance. - ratio of profit before tax to, net of reinsurance. investment assets - ratio of profit or loss from investment activities to investment arithmetic middling. The level of net assets needed to support liabilities (gearing ratio) - ratio of equity to liabilities. The level of investments needed to support liabilities - ratio of investments to liabilities.