KINDLUSTUSE AASTARAAMAT INSURANCE YEARBOOK

Transcription

1 KINDLUSTUSE AASTARAAMAT INSURANCE YEARBOOK 2 Füüsiliste isikute vara 8,1 % Juriidiliste isikute vara 8,6 % Tervisekindlustus 4,5 % Vastutuskindlustus 2,4 % Rahaline kaotus 1,1 % Kaupade transport,9 % Laevad ja õhusõidukid,2 % Edasikindlustus 3,9 % mln krooni 18,3 % Maismaasõidukid 23,3 % Liikluskindlustus 28,7 % Eesti Vabariigi inspektsioon Estonian Insurance Supervisory Authority

2 INSURANCE YEARBOOK 2 Tallinn, 21

3 ESTONIAN INSURANCE SUPERVISORY AUTHORITY A. Lauteri Tallinn ESTONIA Phone: (372) Fax: (372)

4 CONTENTS INTRODUCTION OVERVIEW OF INSURANCE MARKET Structure of Estonian insurance system, 31 December Insurers in Estonia, Licensing commission of the Ministry of Finance Estonian Insurance Supervisory Authority, Major insurance events, Estonian insurance companies, Estonian economy and insurance, Gross premiums per insurer, Gross premiums by lines of business, Owners equity, share capital and foreign capital of insurance companies, Employees of insurers, LIFE INSURANCE Development of life insurance, Insurers within lines of business Lines of business of insurers Balance sheet structure of life insurance companies, 31 December Composition of owners equity in life insurance, 31 December Investment activity of life insurers NON-LIFE INSURANCE Insurers within lines of business Lines of business of insurers Reinsurers share of gross premiums Balance sheet structure of non-life insurance companies, 31 December Composition of owners equity in non-life insurance, 31 December Ratios of non-life insurance Investment activity of non-life insurers Motor TPL insurance, INSURANCE IN BALTIC STATES BASIC TABLES Balance sheet of insurance companies, 31 December Balance sheets of life insurers, 31 December Balance sheets of non-life insurers, 31 December Profit/loss account of non-life insurers, Profit/loss account of motor TPL insurance, Profit/loss account of non-life business excl. motor TPL insurance, Profit/loss account of life insurers,

5 Insurance premiums and claims, Life insurance contracts, premiums and claims per insurer, Life insurance contracts, premiums and claims by lines of business, Non-life insurance contracts, premiums and claims per insurer, Non-life insurance premiums and claims by lines of business, Expenses of insurers,

6 INTRODUCTION Estonian Insurance Supervisory Authority that conducts its activities under the government of the Ministry of Finance, is presenting in this annual yearbook the data illustrating developments in Estonian insurance sector in the year 2. This yearbook was drafted by the following persons at the Insurance Supervisory Authority: Priit Kask, Head of Department for Supervision of Non-Life Insurance and Chief Editor of the Yearbook, and Anneli Sibul, Head of Division for Statistics and Financial Analysis and Managing Editor of the Yearbook. Materials included in the yearbook were compiled with the assistance of the following persons at the Insurance Supervisory Authority: Kaido Tropp, General Director; Leiu Einberg, Head of Department for Financial Supervision and Reporting, Terje Võrk, Head of Department for Supervision of Life Insurance, Anne Pirn, Chief Actuary, Siiri Ollerma, Senior Officer on Non-Life Insurance, Katrin Plaser, Assistant Director General, and Ellen Ridaste (General Director from to ). Tallinn, November 21 Kaido Tropp Priit Kask Director General Chief Editor Estonian Insurance Supervisory Authority Insurance Yearbook 2

7 OVERVIEW OF INSURANCE MARKET

8 Estonian Insurance System Department of Financial Services of the Ministry of Finance Head of Department Mr Veiko Tali Insurance Division Deputy Head of Div. Ms Siiri Tõniste Ministry of Finance Minister Mr Siim Kallas Licencing Commission Chairman Mr Siim Kallas Estonian Insurance Supervisory Authority General Director Ms Ellen Ridaste Deputy Director Mr Kaido Tropp Estonian Traffic Insurance Foundation (ETIF) General Director Mr Veljo Tinn Chairman of the Board Mr Alar Urm Non-life insurance companies: Life insurance companies: 1. BICO-LEKS 5. AS Sampo Eesti 1. BICO e AS e AS Varakindlustus Mr G. Männik Ms O. Reznik Mr O. Laido 2. Hansapanga e AS 2. AS Inges 6. Seesam Rahvusvaheline Mr P. Potisepp Mr V. Vaino e AS 3. Nordika e AS 3. Nordika e AS Mr I. Kuldmäe Mr P. Sedin Mr T. Arge 7. Zürich e 4. Sampo Eesti e AS 4. Salva e AS Eesti AS Ms U. Ilisson Mr T. Pahapill Mr O. Saadoja 5. Seesam e AS Mr T. Saar 6. Ühispanga e AS Mr I. Holst Estonian Insurance Brokers Association Chairman of the Board Mr Ain Habicht Association of Estonian Insurers Chairman of the Board Mr Taivo Saar Managing Director Ms Katrin Hanko Estonian Actuarial Society Chairman of the Board Mr Tarmo Koll Insurance consultants/brokers: 1. Swiss Re Advisers Joint Stock Co 12. abi Joint Stock Co Mr Richard Scholl Mr Toivo Voit 2. TransBaltic International 13. juht Joint Stock Co Mr Andres Kurrik Mr Peeter Lumiste 3. CMM Consulting of Merchant Marine 14. maakler L.K.M. Joint Stock Co Mr Uno Laur/Mr Viljar Kasemaa Ms Merike Mahlapuu 4. Heath Lambert Baltic Ltd 15. AD FINEM maakler Joint Stock Co Mr Jorma Hakonen/Mr Heiki Nurmeots Mr Eero Pilv/Ms Heidi Doronin 5. Marsh & McLennan Eesti Ltd 16. Westel Grupp Joint Stock Co Mr Kristo Ristikivi Ms Ludmilla Tammoja 6. Majesteedi maakleri Ltd 17. ASPU Agentuur Joint Stock Co Mr Ivar Valdmaa/Mr Andrus Järve Mr Pjotr Potjomkin 7. ADVICE S.E. Joint Stock Co (life insurance broker) 18. e ABC Joint Stock Co Mr Ain Niineste Mr Harri Kahl/Mr Erik Sei 8. AON Eesti maakler Ltd 19. Reval maakler Joint Stock Co Mr Kari Aitolehti/Mr Margus Liigand/Mr Kristjan Värton/Mr Kalmet Kala Mr Taivo Heinaru 9. In Bro & Partners Ltd 2. Marks ja Partnerid Joint Stock Co Mr Alvar Virkus Mr Jaan Marks 1. Insurance Brokers Office Joint Stock Co 21. Vandeni maaklerid Ltd Mr Viktor Peterson Mr Raul Källo 11. Vagner & Rossi Konsultatsiooni Ltd 22. Balti maakleri Joint Stock Co Mr Roman Illarionov Mr Kaido Tõnisson

9 INSURERS IN ESTONIA, 2 There were 13 companies underwriting insurance business in Estonia at the end of 2; 6 of them were life insurance companies. The number of life insurers remained the same as in The number of non-life insurers decreased by three companies, i.e. to 7 non-life insurance companies. At the beginning of 2 insurance companies Eesti Varakindlustuse AS and Sampo e AS merged with AS Sampo Eesti Varakindlustus (the former Eesti AS). In summer of 2 insurance company Leks e AS merged with Balti e AS; the merged company was named BICO-LEKS e AS. The market share (8.1%) of insurers that went into bankruptcy in 1999 was rearranged; merged insurance companies kept their market shares. The new Insurance Activities Act, basing on requirements of EU Directives, came into force as of 1 st August 2 and brought along more complete regulation and supervision. Since the supervision in Estonia was extended to cover the activities of insurance intermediaries as well.

10 LICENSING COMMISSION OF THE MINISTRY OF FINANCE Licensing Commission: Chairman:... Siim Kallas... Minister of Finance Members:... Ellen Ridaste... Estonian Insurance Supervisory Authority, Director General Veljo Tinn , Estonian Traffic Insurance Foundation, Director General Enno Lelumees... since 7.9.2, Estonian Traffic Insurance Foundation, Deputy Director, Chief Actuary Kaido Tropp... Estonian Insurance Supervisory Authority, Deputy Director Alar Urm... Ministry of Finance, Head of Legal Department Siiri Tõniste... Ministry of Finance, Substitute to the Head of Insurance Division In 2 the Commission issued 9 licenses, 5 of them were additional licenses to life insurers, 1 was motor TPL insurance license, 2 of them were additional non-life insurance licenses and 1 was a reinsurance license. There were no new insurance companies entering the Estonian insurance market in 2. Due to mergers licenses of three insurers were terminated in 2. Licenses were granted to following active insurers: BICO e AS life insurance (supplementary insurance) AS Sampo Eesti life insurance (pension insurance with tax benefit) Seesam Rahvusvaheline e AS non-life insurance (motor TPL insurance) Hansapanga e AS life insurance (term and whole life insurance, endowment insurance, marriage insurance, unit linked life insurance, pension insurance, pension insurance with tax benefit, accident rider) BICO-LEKS e AS non-life insurance (aircraft liability insurance) Zürich e Eesti AS non-life insurance (railroad rolling stock insurance, motor vehicle liability insurance, aircraft insurance, aircraft liability insurance) Zürich e Eesti AS reinsurance AS Sampo Eesti life insurance (supplementary insurance) AS Ühispanga life insurance (unit linked life insurance)

11 ESTONIAN INSURANCE SUPERVISORY AUTHORITY, 2 The year 2 was the eighth year of existence for the Estonian Insurance Supervisory Authority after its establishment on 1st January In 2 there were 18 public servants employed by the Insurance Supervisory Authority. The Supervisory Authority was divided into three departments: the department of financial supervision and reporting, the department for the supervision of non-life business and the department for the supervision of life business. The Department of financial supervision and reporting was divided into two divisions: the division for inspection and the division for statistics and financial analysis. On the new Insurance Activities Act came into force bringing along more strict supervision of insurers and new regulative provisions like the acquisition of qualifying holding and requirements to members of insurer s management board and supervisory board, also requirements to shareholders and the head of a branch. Due to the enforcement of the new Act the whole legislation in force was submitted to the Ministry of Finance in its amended and supplemented format, such as: Procedures for preparation and submission of annual accounts, interim statements and consolidated financial statements of insurers; Procedures for calculation of the minimum limit of owners equity (solvency margin) of insurers List of subclasses of classes of insurance; Procedures and terms for submission of actuary reports of life insurers; Establishment of layouts, contents and terms of submission for insurers economic and statistical reports, etc.; Additionally, in 2 there were instructive circulars issued in 7 cases, 3 applications for licenses or for amendments to business plans, statutes and insurance terms and conditions were examined. The Insurance Supervisory Authority performed 9 planned on-site inspections in the year 2. The Insurance Supervisory Authority published the new collection of insurance legislation both in Estonian and English, etc.; the Authority published current overviews of the market situation and insurance activities; the informative magazine of the Supervisory Authority Teabe-Leht was continuously published and by the end of 2 there were already 58 publications of this magazine issued. In November 2 the seventh insurance yearbook was published both in Estonian and English. Since 2 the data of insurance yearbooks can be reached via internet ( Insurance Supervisory Authority as a government institution subordinated to the Ministry of Finance will terminate its activities as of Pursuant to the Financial Supervisory Authority Act, entered into force on , a united Financial Supervisory Authority will be established on , based on the Securities Inspectorate, the Insurance Supervisory Authority and the Banking Supervision of the Bank of Estonia. Financial Supervisory Authority will be an agency with autonomous competence and a separate budget, which will operate at the Bank of Estonia and perform financial supervision on behalf of the state.

12 MAJOR INSURANCE EVENTS, Tallinn City Court declared the bankruptcy of ASA e AS Tallinn City Court declared the bankruptcy of AB e AS A commission was established for drafting the basis and programme for the formation of unified financial supervision The Third Joint Meeting of Insurance Supervisors from Nordic countries (5) and Baltic countries (3) in Vilnius, Lithuania The sixth seminar-meeting of insurers writing motor TPL insurance, Pärnu county The Parliament passed the Insurance Activities Act. The Act was enforced by the President of the Republic decision No. 836 of The Act came into force as of The Association of Estonian Insurance Brokers was founded Leks e AS and Balti e AS concluded the contract of transferring of insurance portfolio IAIS seminar for insurance supervisors from Middle- and East-Europe in Krakow, Poland The Fourth International Insurance Conference for Baltic Countries in Riga, Latvia The fifth anniversary of the State Insurance Supervisory Inspection of Latvia The seventh annual Conference of IAIS members in Cape Town, the Republic of South-Africa The tenth anniversary of Cologne Re representation in Riga The tenth anniversary of BICO-LEKS e AS Ellen Ridaste, the general director of the Supervisory Authority for many years, retired

13 ESTONIAN INSURERS, 2 (arranged by foundation date) AS SAMPO EESTI VARAKINDLUSTUS... (non-life insurance) Address:... Pronksi 19 Tallinn Comments:... Pursuant to the merger agreement of , Sampo e AS, Eesti Varakindlustuse AS and AS Sampo Eesti Varakindlustus merged in a way that AS Sampo Eesti Varakindlustus was the merging company and Sampo e AS and Eesti Varakindlustuse AS were companies which were merged Owner:... Vakuutusyhtiö Yritys-Sampo, Finland (1%) Auditor:... PricewaterhouseCoopers Board of Directors: Chairman... Olavi Laido Members... Ulla Ilisson Mihkel Uibopuu Mika Juhani Vilkki Council: Chairman... Juhani Jouko Vesterinen Members... Pekka Juhani Heikkilä Rein Lang Aare Tark Gunnar Graft Minna Kaarina Kohmo Licenses: RM-1119-E, reinsurance RM-1159-E, RM-1376, RM-1375-L, reinsurance non-life insurance (accident, land vehicles, motor liability, fire and natural forces, misc. property, ships and general liability, goods in transit, financial losses and credit) motor TPL insurance NORDIKA KINDLUSTUSE AS... (non-life insurance) Address:... Rävala 2 Tallinn Comments:... founded in 199 at Kiviõli as limited liability co. Eesti Aeromet, name of the company was changed to Nordika AS on Owners:... EBRD (7.6%) New European Insurance Venture (NEIV), U.K. (22.8%) Pjotr Sedin (52.8%) minor shareholders - owning less than 1% (16.8%) Auditor:... KPMG Estonia Board of Directors: Members... Tiit Arge Vambola Tammiksaar Jürgen Vester Council: Members... Pjotr Sedin Jaanus Reisner Oleg Panfilov Licenses: RM-112, non-life insurance (accident, sickness, fire and natural forces, other property, credit, suretyship and financial loss insurance) RM-113-L, RM-114, motor TPL insurance non-life insurance (land vehicles damage, ships hull and liability, goods in transit, aircraft hull and liability, general liability)

14 BICO-LEKS KINDLUSTUSE AS (BICO)...(non-life insurance) Address:... A.Lauteri 5 Tallinn Comments:... founded on in Tallinn the agreement for portfolio transfer was concluded with Leks e AS the new business name of Balti e AS is BICO-LEKS e AS Owners:... Alte Leipziger Europa, Germany (96,22%) minor shareholders (3,78%) Auditor:... PricewaterhouseCoopers Board of Directors: Chairman... Olga Reznik Members... Georg Männik Sergei Vahnitski Arvi Luhakooder Council: Chairman... Achim Naumann Members... Veljo Tinn Kaido Pihlakas Günther Martin Parth Licenses: RM-198, non-life insurance (accident, sickness, land vehicles, aircraft, ships, fire, natural forces, other property; goods in transit, carriers liability and general liability) RM-1139-L, RM-1282, RM-148, motor TPL insurance non-life insurance (suretyship) non-life insurance (aircraft liability) ZÜRICH KINDLUSTUSE EESTI AS... (non-life insurance) Address:... Narva mnt 24 Tallinn Comments:... founded in 1991 in Tallinn Owner:... Zürich Insurance Company, Switzerland (1%) Auditor:... KPMG Estonia Director:... Olev Saadoja Council: Chairman... Anders Waldenvik Members... Helge Christensen Frederik Rosencrantz Aivar Vähi Allan Kruus Riina Neljand Licenses: RM-813, non-life insurance (accident, sickness, goods in transit, fire, natural forces, other property, general liability and financial loss) RM-125, RM-146, RM-147, non-life insurance (land vehicles) non-life insurance (railway rolling stock, motor vehicle liability, aircrafts and aircraft liability) reinsurance SEESAM INTERNATIONAL COMPANY Ltd... (non-life insurance) Address:... Vambola 6 Tallinn Comments:... founded in 1991 in Tallinn Owners:... Pohjola Group, Finland (49%) New Hampshire Insurance Company, USA (48%) minor shareholders (3%) Auditor:... PricewaterhouseCoopers General Director:... Ivo Kuldmäe Board of Directors: Members... Ivo Kuldmäe Margus Luih Svetlana Dutkina Council: Members... Jukka Peltola Toomas Abner Riho Remmel Bengt Westergren Licenses: RM-16, non-life insurance (accident, fire and natural forces, other property, goods in transit, land vehicles, financial loss) RM-147, non-life insurance (general liability) RM-1164, non-life insurance (ships hull and liability) RM-144, motor TPL insurance

15 AS INGES KINDLUSTUS... (non-life insurance) Address:... Raua 35 Tallinn Comments:... founded in 1992 in Tallinn Inges was altered to AS Inges e on Owners:... UNIX-V Ltd (35%) Ingossur B.V., Netherlands (25%) Ingostrakh Ltd, Russia (2%) individuals (2%) Auditor:... KPMG Estonia Director:... Voldemar Vaino Council: Members... Margus Metsma Andrei Sebanin Inge Veso Licenses: RM-115, non-life insurance (accident, sickness, goods in transit, land vehicles, other property, general liability, ships hull and liability) RM-116-L, RM-117, RM-193, motor TPL insurance non-life insurance (carriers liability) non-life insurance (suretyship) SALVA KINDLUSTUSE AS... (non-life insurance) Address:... Pärnu mnt 16 Tallinn Comments:... founded in 1993 in Tallinn Owners:... SIA UB Aprodišinâšana, Latvia (45%) individual (45%) minor shareholders (1%) Auditor:... KPMG Estonia Board of Directors: Chairman... Tiit Pahapill Members... Irja Elias Urmas Kivirüüt Andres Lõhmus Council: Members... Leho Siimsen Peep Kütt Toomas Teramäe Tarmo Keskküla Licenses: RM-297-L, motor TPL insurance RM-298, non-life insurance (goods in transit) RM-536, non-life insurance (fire, natural forces, land vehicles, accident, other property, gen.liab.) RM-788, non-life insurance (carriers liability) RM-114, non-life insurance (ships hull and liability) RM-1137, non-life insurance (aircraft hull and liability) RM-1163, non-life insurance (suretyship) SEESAM ELUKINDLUSTUSE AS... (life insurance) Address:... Roosikrantsi 11 Tallinn Comments:... founded in 1993 in Tallinn Owners:... Pohjola Group Insurance Corporation, Finland (99%) Seesam International Company Ltd (1%) Auditor:... PricewaterhouseCoopers Board of Directors: Chairman... Taivo Saar Members... Erki Kilu Marika Guralnik Council: Chairman... Jukka Peltola Deputy... Toomas Abner Members... Ilkka Lohi Anu Saar Jarmo Kuisma Juhani Talvia Jüri Truusa Riho Remmel Licenses: RM-197, life insurance (term assurance, endowment) RM-1165, life insurance (annuity) RM-1218, life insurance (annuity with tax benefit)

16 HANSAPANGA KINDLUSTUSE AS... (life insurance) Address:... Liivalaia 12 Tallinn Comments:... founded on in Tallinn Owner:... AS Hansapank (1%) Auditor:... KPMG Estonia Board of Directors: Chairman... Priit Potisepp Members... Jürgen Pelt Veikko Tamlak Council: Chairman... Priit Põldoja Members... Raul Parusk Erkki Raasuke Gerd Müller License: RM-145, life insurance (Term and whole life assurance, endowment, annuities, birth and marriage, unit linked life insurance, supplementary insurances and annuity with tax benefit) BICO ELUKINDLUSTUSE AS... (life insurance) Address:... A.Lauteri 5 Tallinn Comments:... founded on in Tallinn Owners:... Alte Leipziger Europa, Germany (65%) Balti e AS (35%) Auditor:... PricewaterhouseCoopers Managing Director:... Georg Männik Board of Directors: Chairman... Olga Reznik Members... Georg Männik Kaido Kepp Council: Chairman... Hans-Dieter Knüttel Members... Achim Naumann Veljo Tinn Ivar Heldur Petersen Licenses: RM -918, life insurance (term assurance, endowment) RM-148, life insurance (annuity) RM-1219, life insurance (annuity with tax benefit) RM-1387, life insurance (supplementary insurances) NORDIKA ELUKINDLUSTUSE AS... (life insurance) Address:... Rävala 2 Tallinn Comments:... founded on in Tallinn Owner:... Nordika e AS (1%) Auditor:... KPMG Estonia Board of Directors: Chairman... Pjotr Sedin Members... Sergei Tšilikin Aleksei Tilinin Maksim Panov Council: Chairman... Jaanus Reisner Members... Tiit Arge Jürgen Vester Vambola Tammiksaar License: RM-115, life insurance (term assurance, endowment, supplementary insurances)

17 AS ÜHISPANGA ELUKINDLUSTUS... (life insurance) Address:... Tornimäe 2 Tallinn Comments:... founded on in Tallinn Owner:... AS Eesti Ühispank (1%) Auditor:... PricewaterhouseCoopers Board of Directors: Chairman... Indrek Holst Members... Jaanus Sibul Aira Tammemäe Council: Chairman... Ain Hanschmidt Members... Lembit Kitter Ülo Suurkask Tõnu Liik Jürgen Lamp Licenses: RM-1255, life insurance (term assurance, endowment) RM-1256, life insurance (whole life) RM-1257, life insurance (annuity) RM-1258, life insurance (accident rider) RM-1259, life insurance (annuity with tax benefit) RM-143, life insurance (unit linked life insurance) AS SAMPO EESTI ELUKINDLUSTUS... (life insurance) Address:... Pronksi tn 19 Tallinn Comments:... founded on in Tallinn Sampo e AS was altered to Sampo Eesti e AS on Owner:... Vakuutusosakeyhtiö Yritys-Sampo, Soome (1%) Auditor:... KPMG Estonia Board of Directors: Chairman... Ulla Ilisson Members... Hele-Liis Viirsalu Mika Juhani Vilkki Council: Chairman... Terttu Marjatta Virmavirta Members... Olavi Laido Minna Kaarina Kohmo Pekka Juhani Heikkilä Licenses: RM-1314, life insurance (term assurance, endowment, annuity) RM-1388, life insurance (annuity with tax benefit) RM-142, life insurance (supplementary insurances)

18 Estonian economy and insurance, GDP at current prices (million kroons) Annual growth of consumer price index (%) 47,7 29, 23,1 11,2 8,2 3,3 4, Population (thousand) Total gross premiums (million kroons) incl. non-life insurance life insurance incl. direct insurance reinsurance Direct gross premiums per capita (kroons) incl. non-life insurance life insurance Insurance penetration (%) 1,2 1,3 1,5 1,6 1,7 1,8 1,9 incl. non-life insurance 1, 1,2 1,4 1,4 1,4 1,5 1,5 life insurance,1,1,1,2,3,3,4 Real growth of gross premiums (%) 22,2 23,7 21,8 18,4 8,3 7,9 12,6 Gross premiums, million kroons Gross premiums at current prices Gross premiums at 1993 constant prices Gross premiums, million kroons Gross premiums at current prices Gross premiums at 1995 constant prices

19 Gross premiums per insurer, 2 (Total of life and non-life insurance thousand kroons) Non-life insurance ( thousand kroons) 8,9 % of gross premiums Leks 9,19% th kroons¹ Seesam 11,25% th kroons Salva 6,4% th kroons Nordika 4,9% th kroons Inges 3,89% th kroons ETIF 3,51% th kroons Zürich 2,62% th kroons BICO-LEKS 19,93% th kroons Sampo Eesti Varakindlustus 38,31% th kroons Life insurance ( thousand kroons) 19,1 % of gross premiums Ühispanga 16,3% th kroons Seesam 15,96% th kroons BICO 7,5% th kroons Nordika 2,64% 8 2 th kroons Sampo Eesti 1,49% th kroons AB,15% 469 th kroons Hansapanga 56,41% th kroons * Only direct insurance ¹ data for I half-year, Leks e AS merged with Balti e AS to BICO-LEKS e AS from II half-year

20 Gross premiums by lines of business, 2 (Total of life and non-life insurance thousand kroons) Non-life insurance ( thousand kroons) 8,9 % of gross premiums Land vehicles 29,91% th kroons Property insurance (legal persons) 11% th kroons Property insurance (physical persons) 1,37% th kroons Travel insurance 3,13% th kroons Accident 2,67% th kroons Motor vehicles liability 1,54% th kroons General liability 1,45% th kroons Pecuniary loss 1,42% th kroons Goods in transit 1,1% th kroons Ships,23% 3 18 th kroons Obligatory liability,11% th kroons Railway rolling stock,6% 823 th kroons Aircraft liability,1% 122 th kroons Aircraft damage,1% 86 th kroons Liability for ships % 38 th kroons Motor TPL insurance 36,99% th kroons Life insurance ( thousand kroons) 19,1 % of gross premiums Unit linked life ins 19,99% th kroons Annuities 13,16% 4 35 th kroons Supplementary insurances 3,74% th kroons Term and whole life assur. 3,39% th kroons Birth and marriage 1,99% 6 45 th kroons Endowment 57,73% th kroons * Only direct insurance

21 Owners' equity, share capital and foreign capital of insurance companies, 31 December thousand kroons Owners' equity Change Share capital* Change / /1999 Share of foreign capital Non-life insurance BICO-LEKS e AS** ,8% ,6% 96,2% AS Sampo Eesti Varakindlustus*** times ,1% 1,% Eesti Varakindlustuse AS*** Inges e AS ,1% ,% 45,% Leks e AS** Nordika e AS ,9% ,% 3,4% Salva e AS ,3% ,% 45,% Sampo e AS*** Seesam Rahvusvaheline e A ,% ,% 97,% Zürich e Eesti AS ,5% ,% 1,% Life insurance BICO e AS ,5% ,4% 65,% Hansapanga e AS ,6% ,% Nordika e AS ,9% ,1% Sampo Eesti e AS ,1% ,% 1,% Seesam e AS times times 89,7% Ühispanga e AS ,2% ,% * Minimum requirement for share capital from : - reinsurance: 2 million kroons - life insurance: 12 million kroons - non-life insurance: 1 million kroons (compulsory motor TPL insurance, other lines of liability insurance, credit, suretyship or misc. financial loss insurance), ** Leks e AS merged with Balti e AS to BICO-LEKS e AS from II half-year of 2 *** Eesti Varakindlustuse AS and Sampo e AS merged with AS Sampo Eesti Varakindlustus (previously AS Eesti ) from 2

22 Average number of employees compared to gross premiums, 2 Gross premiums per employee (thousand kroons) Gross premiums per employee Agents Office employees Office employees and agents Zürich Inges Hansapanga ETIF Seesam Seesam Sampo Eesti Varakindlustus Ühispanga BICO-LEKS Sampo Eesti Salva Leks * Nordika BICO Nordika * data for I half-year; Leks e AS merged with Balti e AS to BICO-LEKS e AS from II half-year Number of insurers and office employees, 31 December Number of office employees Number of office employees Number of insurers Number of insurers Number and educational level of office employees, 31 December 2 Insurance companies ETIF TOTAL Professional or secondary education 52,4 % 549 employees Office employees Higher education Incl. academic degree Professional or secondary education Primary education 5 5 Higher education 47,1 % 493 employees Primary education,5 % 5 employees

23 LIFE INSURANCE

24 LIFE INSURANCE, 2 In 2 there were 6 life insurers writing business in Estonia. There were no mergers nor bankruptcies; bankruptcy proceedings against AB e AS and KAS Polaris-Elu were continued. Seesam e AS continued to redraw policies of clients from insurance companies that went into bankruptcy. The share of insured population increased by.9%, if compared with the previous year. At the end of 2 there were 17,958 main insurance contracts in force in Estonian life insurance market with the total amount of sums assured reaching the level of 1,2 billion Estonian kroons. If compared with the level of total sums insured in 1999, the total sums insured increased by 68.7% during the year 2. The number of contracts in force increased by 11,629 contracts, i.e. by 12.1% if compared with the end of One should keep in mind that in 2 insurance company Seesam took over 7,385 insurance contracts from KAS Polaris-Elu and 3,471 contracts from AB e AS. In 2 the insurance companies writing life insurance business collected premiums within the amount of 34 million Estonian kroons, thereof 292 million kroons were received under main insurance contracts and 11 million kroons under supplementary insurance. In comparison with the year 1999 the amount of premiums collected under main insurance contracts increased by 43.7%; premiums collected under supplementary insurance decreased by 9.6% and the total increase of gross premiums was 4.6%. Gross premiums of new business formed 47% of the total amount of gross premiums. Reinsurance premiums constituted 2.67% of gross premiums collected in 2, i.e. about the same proportion as in the previous year. In 2 there were insurance benefits paid out in the amount of 58,4 m. kroons (the decrease was 14.9% in comparison with the previous year); thereof 54,7 m. kroons were paid out under main insurance contracts and 3,6 m. kroons were paid out under supplementary insurance. Sums assured formed 56.7% and surrenders formed 41.7% of all benefits paid out. Traditionally, the endowment insurance formed the biggest share of life insurance market 68.3% by the number of main insurance contracts in force, reaching the level of contracts; thereof 19% were insurance contracts with tax benefit. The number of contracts increased by 3,694 contracts, i.e. by 5.3% in comparison with 1999, and the sum assured of endowment contracts in force increased by 54.2%, i.e. to the level of 3,4 billion kroons. The share of new endowment business formed 61% of the whole new business in 2. The volume of gross premiums received from endowment insurance remained on the same level as in ,6 million kroons, payments made under endowment contracts decreased by 14.7% in comparison with the previous year, reaching the level of 51 billion kroons in 2. Payments made as sums assured constituted 3% and surrenders 68% of all payments made under endowment insurance contracts. The share of surrenders decreased by 1.8%, and the main reason for such an decrease was that insurance company Hansapanga e AS finished with the redrawing of insurance contracts of Eesti e AS. Pension insurance contracts formed the share of 9.2% of all life insurance contracts in force in 2, but the number of pension contracts increased almost 3 times in comparison with the previous year. The sum assured under pension contracts increased almost 1,6 times reaching the level of 332,7 million kroons in the

25 end of 2. There were 9,951 pension contracts in force in the end of 2; 99% thereof were pension contracts with income tax benefit. Gross premiums were collected from pension insurance in the amount of 4 million kroons (2,9 times more than in 1999), payments were made in the amount of 723 thousand kroons (1,7 times more than in 1999). Term assurance and whole life contracts (5,897 contracts) formed 5.4% of all life insurance contracts in force in 2. The number of insurance contracts in force increased by 86.2% in comparison with the previous year. On of the reasons for this increase may be the increase of the volume of loans granted by the banks to individual persons. In many cases, for receiving the loan it may be necessary to conclude a life insurance contracts where the bank is the beneficiary. Gross premiums collected increased by 45.4%, the total of sums assured increased by 66.7%. The number of marriage insurance and birth insurance contracts in force decreased by 12.6%; the respective sum assured decreased by 4 million kroons, i.e. by 6.9%. Gross premiums were collected in the amount of 6 million kroons, payments were made in the amount of 2,2 million kroons. In the 1999 there were 17 new marriage and birth insurance contracts concluded, but in 2 there was no new business in this class of business. The number of unit linked life insurance contracts increased from 28 contracts to 941 contracts in 2 (the increase was 4,5 times). Gross premiums received under unit linked life insurance contracts increased from,8 million kroons (the level of collection in 1999) to 6 million kroons, the increase being thus 74,3 times. One of the reasons for such an increase in the number of contracts and the premium volume was the development of unit linked life insurance contracts with instalment premiums. Total amount of technical provisions was 425 million kroons in the end of 2, thereof 93.9% constituted the provision for life insurance, outstanding claims provision constituted 4.5% and the provision for bonuses formed 1.6%. The total of technical provisions of unit linked life insurance was 42 million kroons in the end of 2, the increase being 9,4 times during the year. The investment volume of life insurers was 57 million kroons at the end of 2 (at the end of 1999 it was 367,9 m. kroons), which formed 86% of the balance sheet volume. The biggest share of investments belonged to debt securities (52.8%). The second and the third place were taken by deposits with credit institutions (24.2%) and variable-yield securities. Investments into land and buildings decreased and formed 2.6% of the total investment volume.

26 Development of life insurance, * / / / /1996 Change 1998/ / / /1998 2/ /1999 Population (31 December) Contracts in force (31 December) Insurance liability (aggregation of sums insured, 31 December, thousand kroons) Average sum insured (per policy, 31 December, kroons) Level of insured population (31 December) , % -,6 % -,6 % -5,1 % -,4 % ,7 % -11,6 % -5,2 % -22,1 % 12,1 % korda 3 korda 5,9 % -9,3 % 68,7 % korda 3 korda 59,2 % 16,5 % 5,5 % 1,1 % 9, % 8,6 % 7, % 7,9 % * In February and March of 2 Seesam e AS took over contracts of KAS Polaris-Elu and contracts of AB e AS (these companies went to bankruptcy in 1999); not included to contracts in force at the end of 1999 New life insurance contracts, Insurer New contracts (units) Change 2/ Detsember 1999 Share of new contracts 31. Detsember 2 Share of premiums from new contracts BICO % 37 % 38 % 49 % Hansapanga * % 1 % 24 % 44 % Leks ** % - 22 % - Nordika % 29 % 43 % 21 % Sampo Eesti % 99 % 1 % 95 % Seesam *** % 23 % 58 % 47 % Ühispanga ** % 42 % 1 % 54 % Life ins market TOTAL % 18 % 3 % 47 % - Does not include the data of AB e AS and KAS Polaris-Elu which terminated their business in 1999 * In 1999 Hansapanga e AS redraw the contracts of Eesti e AS which was merged in 1999 ** Leks e AS merged with Ühispanga e AS at the end of 1999 *** In February and March of 2 Seesam e AS took over contracts of KAS Polaris-Elu and contracts of AB e AS Surrenders of life insurance contracts, Insurer Paid surrenders (units) Change 2 2/1999 Paid surrenders (thousand kroons) Change 2 2/1999 Share of surrenders in insurance portfolio BICO ,7 +386,9 6 % 6 % Hansapanga * , ,9 17 % 8 % Leks ** % - Nordika ,9 +274,7 3 % 6 % Sampo Eesti % % Seesam *** ,2 +682,9 7 % 7 % Ühispanga ** , ,2 % 3 % Life ins market TOTAL , ,3 16 % 7 % - Does not include the data of AB e AS and KAS Polaris-Elu which terminated their business in 1999 * In 1999 Hansapanga e AS redraw the contracts of Eesti e AS which was merged in 1999 ** Leks e AS merged with Ühispanga e AS at the end of 1999 *** In February and March of 2 Seesam e AS took over contracts of KAS Polaris-Elu and contracts of AB e AS

27 Insurers within lines of business (2) Annuities 4 35 thousand kroons 1% 4 9% 35 8% 7% Seesam Elukindl. 59,1 % 3 Seesam Elukindl % 25 5% 2 4% 15 3% 2% BICO Elukindl. 32,3 % 1 BICO Elukindl % % Hansap. Kindl. 5, % Others 3,7 % 5 Hansap. Kindl. 2 Others Supplementary insurances thousand kroons 1% 13 9% 8% % 6% 5% Hansap. Kindl. 66,9 % Hansap. Kindl % 5 3% 4 2% 1% % Ühisp. Elukindl. 18,6 % BICO Elukindl. 8, % Nordika Elukindl. 5,9 % Sampo Eesti Elukindl.,6 % Ühisp. Elukindl BICO Elukindl. 97 Nordika Elukindl. 672 Sampo Eesti Elukindl Term and whole life assurance thousand kroons 1% 11 9% 1 8% 7% Hansap. Kindl. 35,8 % 9 8 Hansap. Kindl % 5% 4% Seesam Elukindl. 28,9 % Seesam Elukindl % 2% Ühisp. Elukindl. 22,5 % 3 2 Ühisp. Elukindl % % BICO Elukindl. 6,7 % Sampo Eesti Elukindl. 5,3 % Nordika Elukindl.,8 % 1 BICO Elukindl. 688 Sampo Eesti Elukindl. 547 Nordika Elukindl

28 Insurers within lines of business (3) Birth and marriage 6 45 thousand kroons 1% 8 9% 8% 7% 6% % Hansap. Kindl. 96,8 % 4 4% 3% 2% 1% Hansap. Kindl % Ühisp. Elukindl. 3,2 % Ühisp. Elukindl

29 Insurers within lines of business (1) Total gross premiums of life insurance lines thousand kroons 1% 3 9% 275 8% 7% 6% 5% Hansap. Kindl. 56,4 % Hansap. Kindl % 3% 2% 1% % Ühisp. Elukindl. 16,3 % Seesam Elukindl. 16, % BICO Elukindl. 7,1 % Others 4,3 % Ühisp. Elukindl Seesam Elukindl BICO Elukindl Others Endowment thousand kroons 1% 18 9% 16 8% 7% 6% 5% 4% 3% 2% 1% % Hansap. Kindl. 6,8 % Ühisp. Elukindl. 16,2 % Seesam Elukindl. 12,5 % Nordika Elukindl. 4,1 % BICO Elukindl. 3,9 % Sampo Eesti Elukindl. 2,5 % Hansap. Kindl Ühisp. Elukindl Seesam Elukindl Nordika Elukindl BICO Elukindl Others Unit linked life insurance thousand kroons 1% 6 9% 8% 5 7% 6% Hansap. Kindl. 75,2 % 4 Hansap. Kindl % 3 4% 3% 2 2% 1% Ühisp. Elukindl. 24,8 % 1 Ühisp. Elukindl %

30 Lines of business of insurers (1) Total gross premiums of life insurers thousand kroons 1% 3 9% 275 8% 7% 6% 5% Endowment 57,7 % Endowment % 3% 2% 1% % Unit linked life ins 2, % Annuities 13,2 % Supplementary insurances 3,7 % Term & whole life assur. 3,4 % Others 2, % Unit linked life ins Annuities 4 35 Supplementary insurances Term & whole life assur Others Hansapanga e AS thousand kroons 1% 18 9% 16 8% 7% 6% 5% 4% 3% 2% Endowment 62,2 % Unit linked life ins 26,7 % Endowment Unit linked life ins % % Supplementary insurances 4,4 % Birth and marriage 3,4 % Others 3,3 % 2 Supplementary insurances Birth and marriage 5 85 Others Ühispanga e AS thousand kroons 1% 5 9% 45 8% 4 7% Endowment 57,3 % 35 Endowment % 3 5% 25 4% 2 3% 2% Unit linked life ins 3,4 % 15 1 Unit linked life ins % % Term & whole life assur. 4,7 % Supplementary insurances 4,3 % Others 3,4 % 5 Term & whole life assur Supplementary insurances Others

31 Lines of business of insurers (2) Seesam e AS thousand kroons 1% 5 9% 45 8% 7% Annuities 48,7 % 4 35 Annuities % 3 5% 25 4% 2 3% 2% Endowment 45,2 % 15 1 Endowment % % Term & whole life assur. 6,2 % 5 Term & whole life assur BICO e AS thousand kroons 1% 22 9% 2 8% 18 7% 6% 5% 4% 3% 2% Annuities 6,3 % Endowment 32,3 % Annuities Endowment % % Supplementary insurances 4,2 % Term & whole life assur. 3,2 % 2 Supplementary insurances 97 Term & whole life assur Nordika e AS 8 2 thousand kroons 1% 8 9% 8% 7% 6% 5% Endowment 9,6 % Endowment % 3 3% 2% 1% % Supplementary insurances 8,4 % Term & whole life assur. 1, % 2 1 Supplementary insurances 672 Term & whole life assur

32 2 Lines of business of insurers (3) Sampo Eesti e AS thousand kroons 1% 4 5 9% 4 8% 7% 6% 5% 4% 3% Endowment 86,4 % Endowment % 1 1% % Term & whole life assur. 12, % Supplementary insurances 1,5 % 5 Term & whole life assur. 547 Supplementary insurances

33 Balance sheet structure of life insurance companies, 31 December 2 (Balance volume 663 million kroons) 75 Cash and bank account,9 % Receivables from direct insurance,2 % 7 65 Payables from direct insurance,8 % Payables from reinsurance,1 % Receivables from reinsurance,5 % Other receivables,3 % Accrued income and prepaid expenses 1,8 % Other liabilities,8 % Accrued expenses and prepaid income 1,5 % Deferred acquisition costs 1,7 % 45 Life provisions 6,2 % Shares 17,4 % Bonds 45,4 % 4 35 Outstanding claims provision 2,9 % Deposits 2,8 % 3 Provision for bonuses 1, % Other loans,1 % Unit-linked investments 6,4 % Land and buildings (less depreciation) 2,2 % Other fixed assets,9 % Intangible assets,5 % Other,9 % Unit-linked life provisions 6,4 % Share capital (less treasury shares) 27,7 % Share premium 9,4 % General reserve,2 % -5 Retained profit of previous years -4,4 % -1 Profit of the current year -6,5 %

34 Composition of owners' equity in life insurance, 31 December 2 (million kroons) Profit/loss of the year Profit/loss carried forward Other reserves General reserve Share premium Paid-in share capital minus treasury shares Owners' equity less intangible assets Owners' equity less unpaid capital and intangible assets (kroons) Hansapanga Ühispanga Seesam Sampo Eesti BICO Nordika Hansapanga Ühispanga Seesam Sampo Eesti BICO Nordika

35 Investment activity and technical provisions of life insurers th kroons % th kroons % th kroons % th kroons % Total investments, 31 December Land and buildings ,4% ,1% ,6% ,6% Shares in affiliated and associated companies ,2% ,7% 45,% Debt securities of affiliated/associated comp. 2 5,7% 1,% Shares ,7% ,3% ,7% ,3% Bonds ,5% ,2% ,3% ,8% Mortgage loans ,6% ,8% 3,8% Other loans ,9% ,2% 375,1% 349,1% Deposits ,7% ,7% ,5% ,2% Other investments 84,3% Technical provisions, 31 December Balance volume, 31 December Share of investments in balance volume 83% 83% 91% 86% Share of provisions in balance volume 44% 59% 6% 64% Investment income Investment expenses Investments and profitability of life insurers thousand kroons Investments, 31 December (thousand kroons) Profitability of investments (%) 4% 35% 3% 25% 2% 15% 1% 5% % ,61% % -1%

36 Volume of investments of life insurers and share in balance volume, 31 December 2 Share of investments in balance volume Investments 1% 35 9% % 7% 6% 5% 4% 3% 2% 1% % Seesam Sampo Eesti Hansapanga Share of investments in balance volume (%) BICO Ühispanga Nordika Investments (thousand kroons) 5 25 Structure of investments of life insurers, 31 December 2 Seesam Sampo Eesti Hansapanga BICO Ühispanga Nordika TOTAL Land and buildings 2,%,%,% 12,7%,% 54,2% 2,6% Shares in affiliated and associated companies,%,%,%,1%,%,%,% Debt securities of affiliated/associated comp.,%,%,%,3%,%,%,% Shares 25,7% 11,4% 22,6% 15,2% 6,% 1,% 2,3% Bonds 61,5% 59,2% 46,3% 36,4% 89,2% 1,9% 52,8% Mortgage loans,%,%,%,%,%,%,% Other loans,%,%,%,7%,%,6%,1% Deposits 1,8% 29,4% 31,1% 34,6% 4,8% 24,3% 24,2% Other investments,%,%,%,%,%,%,% Total investments 1,% 1,% 1,% 1,% 1,% 1,% 1,%

37 NON-LIFE INSURANCE

38 NON-LIFE INSURANCE IN 2 The non-life insurance market in 2 can be characterised by concentration among the biggest market participants. As a result of merger between Balti e AS and Leks e AS a company BICO-LEKS e AS with a second largest market share emerged, as well as the other post-merger company with the largest market share AS Sampo Eesti Varakindlustus which commenced its business from the beginning of 2. As a result of the aforementioned mergers the market has reached quite high level of concentration in the direct insurance market the share of the biggest company comprises 38.3%, two largest companies (including the pre-merger revenue of Leks e AS in 2) have 67.4% and three largest companies have 78.6% of the market. In general one could observe an increase of activity on non-life insurance market in 2. The growth, based on direct insurance premiums, was 14.5% in 2, being higher than in two previous years. Due to overall improvement of economic situation in 2 the classes of insurance having the highest growth were those most sensitive to that the volume of travel insurance increased by 24.8% (only 6.6% in 1999), the growth of insurance of private property was 21.8% (19.7% in 1999) and 21.1% in insurance of goods in transit (which decreased by 12.64% in 1999). Out of the major classes of insurance only insurance of financial loss showed a slight decrease of 1.3% (decreased by 12.4% in 1999). As in previous year the major factor in 2 having impact on the technical result was decrease of operating expenses the trend that has continued for three consecutive years. Besides tight competition the major contributor to this trend has been increasing economies of scale resulting from continuous market concentration over the past years. In gross terms the expense ratio decreased from 36.7 % in 1999 down to 31.9% in 2. Since reinsurance commissions did not increase significantly in 2 and furthermore, due to decrease of reinsurance share in gross premiums in 2 the decrease in net expense ratio (being 34.9% in 2 and 42.8% in 1999) was not significantly greater compared to change in gross terms. A positive contributor to the technical result of insurance companies has been also the fact that the difference between gross expenses (31.9%) and compensation of the latter by reinsurance commissions (25.4%) has been decreasing, compared to previous year. The technical result has been improved also by significant decrease in loss ratio (the gross loss ratio was 59.8% in 2 and 67.1% in 1999). Since the decrease in reinsurance loss ratio (68.8% in 2, 78.3% in 1999) has been slightly greater than the change in gross loss ratio, the decrease and hence impact of net loss ratio on the technical result of insurance companies has been less (61.3% in 2, 55.6% in 1999). It is, however, important to note that for the first time during last three years the both risk bearing counterparts on the market as a whole had technical profit i.e. the combined ratio decreased below 1% (the result of insurance companies i.e. the net combined ratio decreased from 14.1 % in 1999 down to 9.5% in 2 and the result of reinsurance decreased from 13.1 % down to 94.2%, respectively.) In different insurance classes the decrease of operating expenses has been an influential factor primarily in non-obligatory classes of insurance (the gross expense ratio decreased from 41.2 % in 1999 down to 34.5% 2) whilst in motor TPL insurance the major factor has been decrease in loss ratio (it decreased from 77.% in 1999 down to 64.% in 2). A positive shift to be noted within non-life insurance companies is also the increase of liquid assets, both within investments and within total assets. The importance of marketable bonds and fixed yield securities increased from 23.4 % in 1999 up to 28.% in 2. aastal, the respective increase of deposits was from 17.1 % up to 23.5%. The overall net profit of non-life insurance companies in 2 was 55 million kroons.

39 Insurers within lines of business (1) Total of non-life classes thousand kroons 1% 13 9% 8% 7% 6% 5% 4% 3% 2% 1% % Sampo EV 38,3 % Sampo Eesti Varakindlustus BICO-LEKS 19,9 % Seesam 11,3 % Leks 9,2 % Salva 6,4 % Nordika 4,9 % Inges 3,9 % Others 6,1 % Sampo EV Sampo Eesti Varakindlustus BICO-LEKS Seesam Leks Salva Nordika Inges Others Motor TPL insurance thousand kroons 1% 5 9% 45 8% Sampo EV 35,4 % 4 Sampo EV % 6% 5% Sampo Eesti Varakindlustus BICO-LEKS 18,6 % Sampo Eesti Varakindlustus BICO-LEKS % Leks 11,7 % 2 Leks % Nordika 1,5 % 15 Nordika % ETIF 9,5 % 1 ETIF % % Salva 8,3 % Others 6,1 % Salva Others Land vehicles insurance thousand kroons 1% 4 9% 8% 7% 6% Sampo EV 38, % Sampo Eesti Varakindlustus Sampo EV Sampo Eesti Varakindlustus 5% Seesam 22,5 % 2 Seesam % 15 3% 2% 1% % BICO-LEKS 2,8 % Leks 8,3 % Salva 6,6 % Others 3,8 % BICO-LEKS Leks Salva Others

40 Insurers within lines of business (2) Property insurance (legal persons) thousand kroons 1% 14 9% 8% Sampo EV 33, % 12 Sampo EV % Sampo Eesti Varakindlustus 1 Sampo Eesti Varakindlustus 6% 5% BICO-LEKS 26,3 % 8 BICO-LEKS % 6 3% Seesam 17,2 % 4 Seesam % 1% % Zürich 12,6 % Leks 6,9 % Others 4, % 2 Zürich Leks Others Property insurance (physical persons) thousand kroons 1% 13 9% 12 8% 7% 6% Sampo EV 7, % Sampo EV % 4% 3% Sampo Eesti Varakindlustus Sampo Eesti Varakindlustus 2% 1% % BICO-LEKS 13,9 % Seesam 6,1 % Leks 5,9 % Others 4,2 % BICO-LEKS Seesam Leks Others Travel insurance thousand kroons 1% 4 9% 8% 7% 6% BICO-LEKS 21,7 % Sampo EV 19,6 % Sampo Eesti Varakindlustus BICO-LEKS Sampo EV Sampo Eesti Varakindlustus 5% Seesam 17,2 % 2 Seesam % 3% 2% Inges 16,1 % Salva 12,5 % 15 1 Inges 6 59 Salva % % Leks 8,3 % Others 4,6 % 5 Leks Others

41 Insurers within lines of business (3) Liability insurance 4 5 thousand kroons 1% 4 9% 8% 7% Inges 28,5 % 35 3 Inges % BICO-LEKS 21, % 25 BICO-LEKS % 4% 3% 2% 1% % Sampo EV 16, % Sampo Eesti Varakindlustus Leks 14,1 % Seesam 11,8 % Zürich 7, % Others 1,6 % Sampo EV 6 39 Sampo Eesti Varakindlustus Leks Seesam 4 73 Zürich 2 79 Others 643 Accident thousand kroons 1% 35 9% 8% 7% Sampo EV 44,1 % 3 25 Sampo EV % 5% 4% Sampo Eesti Varakindlustus Seesam 25, % 2 15 Sampo Eesti Varakindlustus Seesam % 2% 1% % BICO-LEKS 12,6 % Leks 9,5 % Inges 2,8 % Others 6, % BICO-LEKS Leks Inges 959 Others 2 84 Insurance for pecuniary loss thousand kroons 1% 9% 8% 7% 6% 5% Nordika 29,7 % BICO-LEKS 27,3 % Nordika BICO-LEKS 5 8 4% 3% 2% 1% % Sampo EV 21,8 % Sampo Eesti Varakindlustus Inges 13,3 % Salva 7,4 % Others,6 % Sampo EV Sampo Eesti Varakindlustus Inges Salva 1 35 Others 13

42 Insurers within lines of business (4) Goods in transit thousand kroons 1% 14 9% 8% 7% Sampo EV 27,4 % Sampo Eesti Varakindlustus 12 1 Sampo EV Sampo Eesti Varakindlustus 6% 5% BICO-LEKS 24,5 % 8 BICO-LEKS % Seesam 19,8 % 6 Seesam % 2% 1% % Salva 9,3 % Zürich 8,2 % Leks 5,2 % Others 5,7 % Salva Zürich Leks 737 Others 81 Note: the above charts contain only direct insurance, inwards reinsurance is excluded

43 Lines of business of insurers (1) Non-life insurance companies thousand kroons 1% 13 9% 8% 7% Motor TPL 37, % Motor TPL % 5% 4% Land vehicles 3, % Land vehicles % 2% 1% % Property (legal p.) 11, % Property (physical p.) 1,4 % Travel 3,1 % Liability 3,1 % Other 5,4 % Property (legal p.) Property (physical p.) Travel Liability 4 5 Other AS Sampo Eesti Varakindlustus¹ thousand kroons 1% 5 9% 8% Motor TPL 34,1 % 45 4 Motor TPL % 35 6% 3 5% Land vehicles 29,8 % 25 Land vehicles % 2 3% 2% Property (physical p.) 18,9 % 15 1 Property (physical p.) % % 2 Property (legal p.) 9,5 % Accident 3,1 % Other 4,6 % 5 2 Property (legal p.) Accident Other BICO-LEKS e AS² thousand kroons 1% 26 9% 8% 7% Motor TPL 34,5 % Motor TPL % 5% 4% Land vehicles 31,2 % Land vehicles % 2% 1% % Property (legal p.) 14,5 % Property (physical p.) 7,2 % Travel 3,4 % Liability 3,3 % Other 5,9 % Property (legal p.) Property (physical p.) Travel Liability 8 42 Other ¹ Former AS Eesti, with whom Eesti Varakindlustuse AS (its daughter) and Sampo e AS were merged ² From 2-nd half of 2 Leks e AS was merged with Balti e AS to BICO-LEKS e AS

44 Lines of business of insurers (2) Seesam Rahvusvaheline e AS thousand kroons 1% 9% 14 8% 12 7% Land vehicles 59,9 % 1 Land vehicles % 5% 8 4% 6 3% 2% 1% % Property (legal p.) 16,8 % Accident 5,9 % Property (physical p.) 5,6 % Travel 4,8 % Liability 3,3 % Other 3,7 % Property (legal p.) Accident Property (physical p.) Travel Liability 4 73 Other Salva e AS thousand kroons 1% 9% 8% 7% Motor TPL 48,2 % Motor TPL % 5 5% 4 4% 3% 2% 1% % Land vehicles 31, % Travel 6,1 % Property (legal p.) 5,7 % Property (physical p.) 4,5 % Other 4,5 % Land vehicles Travel 5 41 Property (legal p.) Property (physical p.) Other Nordika e AS thousand kroons 1% 9% 8 8% 7 7% 6 6% 5% 4% 3% 2% 1% % Motor TPL 79,2 % Pecuniary loss 8,6 % Land vehicles 4,9 % Travel 2,5 % Other 4,8 % Motor TPL 5 58 Pecuniary loss Land vehicles 3 73 Travel Other 3 6

45 Lines of business of insurers (3) Inges e AS thousand kroons 1% 5 9% 45 8% 7% Motor TPL 53,2 % 4 35 Motor TPL % 3 5% 25 4% 3% Liability 22,8 % 2 15 Liability % Travel 13, % 1 Travel % % Pecuniary loss 4,8 % Land vehicles 2,6 % Other 3,5 % Pecuniary loss Land vehicles Other Zürich e AS thousand kroons 1% 9% 3 8% 7% Property (legal p.) 53,1 % 25 Property (legal p.) % 2 5% 4% 15 3% Land vehicles 3,2 % 1 Land vehicles % 1% % Liability 8,3 % Goods in transit 3,4 % Other 5,1 % Liability 2 79 Goods in transit Other 1 79 Note: the above charts contain only direct insurance, inwards reinsurance is excluded

46 Reinsurers' share of gross premiums Within lines of business 1 % 9 % 8 % 7 % 6 % 5 % 4 % 3 % 2 % 1 % 2,4 % This diagram contains only direct business of insurance companies, inwards reinsurance is excluded. Gross premiums of lines of business shown here comprised 99.9% of direct gross premiums in 2 14, % 15,5 % 19,9 % 44,3 % 49,4 % 55,3 % 43,3 % 52,9 % 62,8 % 7,2 % 23,4 % 17,5 % 15,5 % 14,1 % 7, % 67,3 % 59,6 % 1,3 % 7,8 % 47, % 48,3 % 57,3 % 64,1 % 51,6 % 38,9 % 27,9 % 38,1 % 88,6 % 42,3 % 34,2 % 31,1 % % Motor TPL (domestic) Motor TPL (green card) Motor vehicles liability General liability Professional liability Empoyer's liability Travel insurance Accident Property (legal persons) Property (phys. persons) Land vehicles Aircraft, ships Goods in transit Suretyship Financial loss Total of direct insurance Within insurers % 9 % 8 % Gross premiums of insurance companies (denominator) have been deducted by mandatory transfers (8% of motor TPL premiums) to ETIF, and increased by service charges for conclusion of motor TPL contracts 8,4 % 72,6 % 7 % 6 % 5 % 4 % 3 % 2 % 39,5 % 29,2 % 33,3 % 48,3 % 26,2 % 22,7 % 57, % 11,8 % 6,9 % 59,3 % 25,3 % 18,2 % 47,9 % 62,6 % 33,8 % 31,2 % 1 % % BICO-LEKS Inges Leks Nordika Salva Sampo EV (in 1999 incl. Sampo, Eesti Varakindl.) Seesam Zürich Total excl. ETIF

47 Balance sheet structure of non-life insurance companies, 31 December 2 (Balance volume million kroons) Cash and bank account 2,5 % 1 3 Payables from direct insurance 2,1 % Receivables from direct insurance 3,2 % 1 2 Payables from reinsurance 5,8 % Receivables from reinsurance 3, % Other receivables,3 % Accrued income and prepaid expenses 3,7 % Deferred acquisition costs 2,5 % Other liabilities 1,8 % Accrued expenses and prepaid income 3, % Reins. share in deferred acq. costs 2, % Investments in affiliated companies 14,2 % Investments in associated companies,4 % Shares 6,8 % Bonds 28, % Deposits 23,5 % Unearned premiums provision 19,5 % Outstanding claims provision 19,9 % Other technical provisions 1,2 % Share capital (less treasury shares) 32,9 % Mortgage loans 1,7 % 4 Share premium 12,4 % Other loans,1 % Land and buildings (less depreciation) 5,6 % Other fixed assets 3,5 % Intangible assets,9 % General reserve 2, % Other reserves,2 % Profit of the current year 4,1 % -1 Retained profit of previous years -8,1 %

48 Composition of owners' equity in non-life insurance, 31 December 2 (million kroons) Profit/loss of the year Profit/loss carried forward Other reserves General reserve Share premium Paid-in share capital minus treasury shares Owners' equity less intangible assets Owners' equity less unpaid capital and intangible assets (kroons) Sampo Eesti Varakindlustus Nordika BICO-LEKS Estonian Traffic Insurance Foundation Seesam Rahvusvaheline Inges Zürich Salva Sampo EV Nordika BICO-LEKS ETIF Seesam Inges Zürich Salva

49 COMMENTS TO RATIOS OF NON-LIFE INSURANCE In all ratios the premiums have been increased by the sum of service charges collected by insurers upon conclusion of motor TPL insurance contracts, otherwise included in "Other technical income" in P&L account, and decreased by mandatory transfers to ETIF (8% of motor TPL premiums, included in "Other technical charges" in P&L account) since these transfers do not participate directly in indemnification of losses arising from contracts concluded by insurers concerned. Changes in other technical provisions are split between nominator and denominator according to their essence - changes in unexpired risk provisions (URP) have been added to denominator and changes in motor TPL pension provision (MPP) have been added to nominator. The expense ratios include adjustments for deferred acquisition costs (DAC) in nominator, which enables to present the combined ratios of companies. Expense ratios not adjusted by DAC are accompanied by note "(not adjusted by change in DAC and UPP)". Ratios of claims paid to premiums written are given just for reference and comparison, they also have direct impact on liquidity. OCP and UPP stand for outstanding claims provision and unearned premiums provision, respectively. None of the following diagrams has been made with the intention to be interpreted as a ranking list of any kind since the initial data may depend on different factors in different companies which, therefore, makes any ratios sometimes incomparable to a certain extent. The following ratios are used: Gross loss ratio = total claims paid + change in OCP + change in MPP gross premiums + change in UPP + change in URP Gross expense ratio = acquisition costs + administrative expenses + change in DAC gross premiums + change in UPP + change in URP Gross combined ratio = gross loss ratio + gross expense ratio Reinsurers' loss = ratio = reinsurers' share in claims paid + change in reinsurers' OCP + change in reinsurers' share of ceded premiums + reinsurers' share in UPP + reinsurers' share of URP MPP Reinsurers' expense ratio = commissions from reinsurers + change in reinsurers' share of DAC premiums ceded + change in reinsurers' UPP + change in reinsurers' URP Reinsurers' combined ratio = reinsurers' loss ratio + reinsurers' expense ratio

50 Net loss ratio = net claims paid + net change in OCP + net change MPP net premiums + net change in UPP + net change in URP Net expense ratio = operating expenses net premiums + net change in UPP + net change in URP Net combined ratio = net loss ratio + net expense ratio Gross payout ratio total claims paid + claim handling expenses - subrogation = gross premiums Net payout ratio = net claims paid net premiums Reinsurers ' payout ratio = reinsurers' share in claims ceded premiums paid Gross expense ratio (not adjusted by changes operating expenses + administrative expenses in DAC and UPP) = gross premiums Net expense ratio (not operating expenses + = adjusted by changes in DAC and UPP) = administrative expenses - reinsurance commissions net premiums written reinsurance commissions Reinsurers ' expense ratio (not adjusted by changes in DAC and UPP) = premiums ceded

51 Main ratios of non-life insurers (1) Gross loss ratio 11 % 1 % 9 % 8 % 7 % 6 % 5 % 4 % 3 % 2 % 1 % % total other than motor TPL motor TPL BICO-LEKS Inges Leks Nordika Salva Sampo EV Seesam Zürich TOTAL excl. ETIF ETIF Gross expense ratio total other than motor TPL motor TPL 1 % 9 % 8 % 7 % 6 % 5 % 4 % 3 % 2 % 1 % % BICO-LEKS Inges Leks Nordika Salva Sampo EV Seesam Zürich TOTAL excl. ETIF ETIF Gross combined ratio total other than motor TPL motor TPL 14 % 12 % 1 % 8 % 6 % 4 % 2 % % BICO-LEKS Inges Leks Nordika Salva Sampo EV Seesam Zürich TOTAL excl. ETIF ETIF

52 Main ratios of non-life insurers (2) Net loss ratio 1 % total other than motor TPL motor TPL 9 % 8 % 7 % 6 % 5 % 4 % 3 % 2 % 1 % % BICO-LEKS Inges Leks Nordika Salva Sampo EV Seesam Zürich TOTAL excl. ETIF ETIF Net expense ratio total other than motor TPL motor TPL 12 % 11 % 1 % 9 % 8 % 7 % 6 % 5 % 4 % 3 % 2 % 1 % % BICO-LEKS Inges Leks Nordika Salva Sampo EV Seesam Zürich TOTAL excl. ETIF ETIF Net combined ratio 13 % 12 % 11 % 1 % 9 % 8 % 7 % 6 % 5 % 4 % 3 % 2 % 1 % % total other than motor TPL motor TPL BICO-LEKS Inges Leks Nordika Salva Sampo EV Seesam Zürich TOTAL excl. ETIF ETIF

53 Main ratios of non-life insurers (3) Reinsurers' loss ratio 14 % total other than motor TPL motor TPL 12 % 1 % 8 % 6 % 4 % 2 % % BICO-LEKS Inges Leks Nordika Salva Sampo EV Seesam Zürich TOTAL excl. ETIF ETIF Reinsurers' expense ratio 4 % total other than motor TPL motor TPL 35 % 3 % 25 % 2 % 15 % 1 % 5 % % BICO-LEKS Inges Leks Nordika Salva Sampo EV Seesam Zürich TOTAL excl. ETIF ETIF Reinsurers' combined ratio total other than motor TPL motor TPL 16 % 14 % 12 % 1 % 8 % 6 % 4 % 2 % % BICO-LEKS Inges Leks Nordika Salva Sampo EV Seesam Zürich TOTAL excl. ETIF ETIF

54 Main ratios of non-life insurers (4) Gross payout ratio 8 % total other than motor TPL motor TPL 7 % 6 % 5 % 4 % 3 % 2 % 1 % % BICO-LEKS Inges Leks Nordika Salva Sampo EV Seesam Zürich TOTAL excl. ETIF ETIF Net payout ratio 8 % total other than motor TPL motor TPL 7 % 6 % 5 % 4 % 3 % 2 % 1 % % BICO-LEKS Inges Leks Nordika Salva Sampo EV Seesam Zürich TOTAL excl. ETIF ETIF Reinsurers' payout ratio total other than motor TPL motor TPL 14 % 12 % 1 % 8 % 6 % 4 % 2 % % BICO-LEKS Inges Leks Nordika Salva Sampo EV Seesam Zürich TOTAL excl. ETIF ETIF

55 Main ratios of non-life insurers (5) Gross expense ratio (not adjusted by change in DAC and UPP) total other than motor TPL motor TPL 1 % 9 % 8 % 7 % 6 % 5 % 4 % 3 % 2 % 1 % % -1 % BICO-LEKS Inges Leks Nordika Salva Sampo EV Seesam Zürich TOTAL excl. ETIF ETIF Net expense ratio (not adjusted by change in DAC and UPP) total other than motor TPL motor TPL 1 % 9 % 8 % 7 % 6 % 5 % 4 % 3 % 2 % 1 % % BICO-LEKS Inges Leks Nordika Salva Sampo EV Seesam Zürich TOTAL excl. ETIF ETIF Reinsurers' expense ratio (not adjusted by change in DAC and UPP) 35 % total other than motor TPL motor TPL 3 % 25 % 2 % 15 % 1 % 5 % % BICO-LEKS Inges Leks Nordika Salva Sampo EV Seesam Zürich TOTAL excl. ETIF ETIF

56 Non-life insurance ratios¹ Total % 11 % 1 % 9 % 8 % 7 % 6 % 5 % 4 % 3 % 2 % 1 % % 65,5 67,1 59,8 43,6 36,7 31,9 19,2 13,8 91,7 66,3 61,3 55,6 5,9 42,8 34,9 117,2 14,1 9,5 63,4 78,3 68,8 23,1 24,8 25,4 Gross loss ratio 86,5 13,1 94,2 Gross expense ratio 54,9 5,2 46,6 54,3 51,5 45,2 56,6 47,8 49,6 Gross combined ratio 42,4 33,9 3,8 Net loss ratio 48,5 Net expense ratio 39,2 33, Net combined ratio 23,7 24,3 25,8 Reinsurers' loss ratio Reinsurers' expense ratio Reinsurers' combined ratio Claims paid to written premiums (gr.) Claims paid to written premiums (net) Claims paid to written premiums (rein.) Gross expense ratio (without UPP, DAC) Net expense ratio (without UPP, DAC) Reins. expense ratio (without UPP, DAC) Other than motor TPL % 11 % 1 % 9 % 8 % 7 % 6 % 5 % 4 % 3 % 2 % 1 % % 59,3 61,9 57,6 51,1 41,2 34,5 11,4 13,1 92, Gross loss ratio Gross expense ratio Gross combined ratio Net loss ratio Net expense ratio Net combined ratio Reinsurers' loss ratio Reinsurers' expense ratio Reinsurers' combined ratio Claims paid to written premiums (gr.) Claims paid to written premiums (net) 56,5 56,3 52,1 Claims paid to written premiums (rein.) 64,9 Gross expense ratio (without UPP, DAC) 5, Net expense ratio (without UPP, DAC) 38, 121,5 16,3 9,1 64,4 69,9 65,7 25,5 28,7 29,2 89,9 98,6 94,9 5,3 46, 45,7 45,7 45,3 43,2 59,7 46,9 49,5 49,3 37,8 33,1 6,8 44,8 35,6 Reins. expense ratio (without UPP, DAC) 26, 28,2 29,3 Motor TPL % 11 % 1 % 9 % 8 % 7 % 6 % 5 % 4 % 3 % 2 % 1 % % 72,6 77, 64, 29,3 28, 27,1 11,8 15,1 91,1 75,6 68,3 6,2 31,7 32,7 3,9 17,3 11,1 91,1 45,6 111,5 Gross loss ratio Gross expense ratio 83,8 7,4 9,4 7,3 53, 12,9 91,1 63,4 58,7 48,1 66,1 6,7 47,8 37,4 51,5 49,9 3,3 26,1 26,4 32,6 3,8 29,6 Gross combined ratio Net loss ratio Net expense ratio Net combined ratio Reinsurers' loss ratio Reinsurers' expense ratio 7,9 9,3 8, Reinsurers' combined ratio Claims paid to written premiums (gr.) Claims paid to written premiums (net) Claims paid to written premiums (rein.) Gross expense ratio (without UPP, DAC) Net expense ratio (without UPP, DAC) Reins. expense ratio (without UPP, DAC) ¹ The ratios do not include data of ETIF

57 Investment activity and technical provisions of non-life insurers th kroons % th kroons % th kroons % th kroons % Total investments, 31 December Land and buildings ,% ,9% ,7% ,7% Shares in affiliated and associated companies ,4% ,3% ,% ,6% Debt securities of affiliated/associated comp ,4% ,5% ,8% ,% Shares ,6% ,7% ,3% ,2% Bonds ,1% ,3% ,2% ,1% Mortgage loans 7 88,9% ,5% ,5% ,1% Other loans ,9% ,7% 7 871,8% 1 314,1% Deposits ,6% ,9% ,6% ,2% Other investments 79,1% 1 885,2% 515,1% 314,% Technical provisions, 31 December Balance volume, 31 December Share of investments in balance volume 7% 72% 78% 81% Share of provisions in balance volume 29% 39% 42% 43% Investment income Investment expenses Investments and profitability of non-life insurers thousand kroons 2 Investments, 31 December (thousand kroons) Profitability of investments (%) 2% 1 1% % -1-1% -2-2% -3-29,93% %

58 Volume of investments of non-life insurers and share in balance volume, 31 December 2 Share of investments in balance volume Investments 9% 36 8% 32 Share of investments in balance volume (%) 7% 6% 5% 4% 3% 2% Investments (thousand kroons) 1% % Sampo Eesti Varakindlustus ETIF BICO Inges Nordika Salva Zürich Seesam 4 Structure of investments of non-life insurers, 31 December 2 Sampo Eesti Varakindlustus ETIF BICO Inges Nordika Salva Zürich Seesam TOTAL Land and buildings 2,8% 65,8% 11,2% 2,8% 3,% 47,1% 1,3% 3,5% 15,7% Shares in affiliated and associated companies 18,7% 21,4% 2,2%,% 24,7% 2,7%,%,% 12,6% Debt securities of affiliated/associated comp.,%,%,%,% 51,9% 5,2%,%,% 6,1% Shares 1,6%,% 5,% 2,6% 1,5% 23,5% 6,8% 18,% 7,2% Bonds 42,% 1,9% 36,4% 9,% 9,6% 9,6% 31,3% 63,8% 3,% Mortgage loans 1,4% 2,% 5,2%,%,% 3,5% 2,5%,% 2,1% Other loans,%,1%,1%,%,3% 1,%,%,%,1% Deposits 24,5% 8,8% 39,8% 85,6% 9,% 7,4% 49,1% 14,7% 26,2% Other investments,%,%,1%,%,%,%,%,%,% Total investments 1,% 1,% 1,% 1,% 1,% 1,% 1,% 1,% 1,%

59 MOTOR TPL INSURANCE, 2 Motor TPL insurance as an obligatory insurance line was enforced in Estonia on 1 July In 2 there were 6 insurance companies in Estonia writing motor TPL business, of which the insurance company Seesam Rahvusvaheline e AS was engaged in this line of business for the first year. Besides the insurers, there was the Estonian Traffic Insurance Foundation (hereinafter: TIF) that was active as an insurer in border insurance business. It performed also duties of the Estonian National Bureau writing international motor TPL insurance and a guarantee fund for motor TPL insurance. One of the duties of TIF was to organise the system of motor TPL insurance in Estonia, indemnify losses caused by illegitimately uninsured vehicles, and reinsure motor TPL insurance portfolios of Estonian insurance companies. The total volume of motor TPL insurance premiums in 2 was 477 million Estonian kroons (in 1999 the respective figure was 434,5 m. kroons). Premiums received from motor TPL insurance also include service charges collected from clients when selling the contract. There were 314,162 annual contracts concluded within the year for vehicles registered in Estonia (here the number of contracts concluded for periods with different length is transformed to contracts concluded for a year). According to the data received from public files, the number of vehicles which had to be insured was 662 thousand. The share of insured vehicles decreased in 2. In 1999 the share of insured vehicles was 54%, in 2 it was 47%. Insurance companies conclude ordinary contracts, complex contracts. International policies are sold by insurance companies, either separately or in addition to ordinary contracts, on behalf of the Traffic Insurance Foundation that is acting as a guarantor. Border insurance contracts are sold by the Traffic Insurance Foundation to uninsured and not registered (in Estonia) vehicles arriving to Estonia. Average cost of annual contracts of domestic motor TPL insurance (does not include border insurance nor Green Card) for a customer was in 2 the highest in insurance company Seesam Rahvusvaheline e AS and the lowest in insurance company AS Sampo Eesti Varakindlustus. The respective figure depends on the duration of concluded contracts and on the type of vehicles. Total technical provisions of motor TPL insurance of insurance companies were in the end of million kroons (reinsurers share of it was 13,1 m. kroons). Unearned premium provision constituted 81,9 million kroons of this amount (reinsurers share was 1,1 m. kroons), outstanding claims provision constituted 179,7 million kroons (reinsurers share was 76,3 m. kroons), and provision for motor TPL insurance pension constituted 31,4 million kroons (reinsurers share was 16,7 m. kroons).

60 Insurance market and its breakdown, Motorcycles Cars Trucks, trailers and vans Tractors Trailed vehicles Buses TOTAL Number of vehicles (31 December, thousand units) Annual policies (units) Percentage of insurance (%) Number of annual policies and structure by lines of policies, 2 (Total annual policies) Complex contract 4,19% Green Card 2,84% 8 92 Border insurance 1,29% 4 51 Ordinary contract 91,68% Number of domestic annual contracts concluded and their average cost for customers, 2 2 Average cost per policy Annual policies 15 Average cost per policy (kroons Seesam Inges Nordika BICO-LEKS * Salva Sampo Eesti Varakindlustus Annual policies (units) * Leks e AS merged with Balti e AS to BICO-LEKS e AS from II half-year of 2; here consolidated data is presented

61 The structure of insured vehicles by the duration of policy in domestic insurance industry, 2 Type of vehicle Up to 5 days 6-15 days Duration of policy from 16 days to 1 month from 1 month to 3 months from 3 months to 1 year TOTAL Buses,1%,1%,9%,29%,34%,74% Trailed vehicles,1%,2%,11%,2% 2,24% 2,58% Motorcycles % %,4%,8%,23%,35% Cars,72% 1,69% 25,76% 28,7% 26,95% 83,2% Tractors %,1%,8%,24% 1,52% 1,85% Trailers,5%,4%,2%,23%,21%,73% Trucks,11%,12% 1,18% 1,64% 2,41% 5,46% Vans,5%,9% 1,27% 1,52% 2,17% 5,9% TOTAL,96% 1,99% 28,73% 32,26% 36,7% 1% Number and structure of annual policies in domestic insurance by type of vehicles, 2 (Total annual policies) Trailed vehicles 6,8% Trucks 6,4% 2 13 Vans 5,5% Tractors 3,2% 1 14 Buses 1,% Trailers,6% 1 84 Motorcycles,5% Cars 76,% Earned premiums and claims incurred of compulsory motor TPL insurance by insurers, 2 thousand kroons Earned premiums Claims incurred Sampo Eesti Varakindlustus BICO-LEKS Nordika Leks * Salva Inges Seesam Here: earned premiums = motor TPL gross premiums - 8% to Estonian Traffic Insurance Foundation + service charges - change in unearned premiums provision claims incurred = claims paid + change in outstanding claims provision + change in other tech. provisions * Leks e AS merged with Balti e AS to BICO-LEKS e AS from II half-year of 2; here consolidated data is presented

62 Contracts, premiums and claims paid of compulsory motor TPL insurance per insurer, 2 BICO-LEKS, Leks * Inges Nordika Salva Sampo Eesti Varakindlustus Seesam Rahvusvaheline TOTAL insurance companies Estonian Traffic Insurance Foundation Structure of premiums by policy types: TOTAL 31,7% 7,1% 1,3% 9,4% 37,4%,7% 96,6% 3,4% 1,% - Domestic insurance 26,7% 6,6% 9,5% 6,5% 33,%,4% 82,7% 82,7% incl ordinary contracts 26,% 6,5% 9,2% 6,3% 31,9%,4% 8,3% 8,3% complex contracts,7%,1%,3%,2% 1,1%,% 2,4% 2,4% - International contracts (Green Card) 5,%,5%,8% 2,9% 4,4%,3% 13,9% 13,9% - Border insurance 3,4% 3,4% Gross premiums (Incl. service charges, thousand kroons Reinsurers' share in gross premiums (thousand kroons) Structure of paid indemnities: TOTAL 28,9% 4,6% 11,% 6,2% 32,2%,1% 83,% 17,% 1,% - Personal loss,8%,%,8%,3%,9%,% 2,8% 1,1% 3,9% incl medical expenses,5%,%,3%,3%,5% 1,6%,3% 1,9% temporary disability,1%,%,2%,%,2%,5%,1%,6% permanent disability,1%,2%,2%,5%,3%,8% family pension,%,%,1%,%,%,1%,3%,4% funeral expenses,1%,%,%,%,%,1%,1%,2% - Property loss 28,1% 4,6% 1,2% 5,9% 31,3%,1% 8,2% 15,9% 96,1% incl vehicles 27,1% 4,5% 1,1% 5,8% 3,8%,1% 78,4% 14,9% 93,3% personal articles,%,%,%,1%,1%,%,1% road, road constructions,4%,%,%,%,1%,5%,3%,8% cargo,%,%,%,%,1%,1% other,6%,1%,1%,1%,3% 1,2%,6% 1,8% Claims paid (thousand kroons) (claims paid = indemnities +handling costs- subrogations - Paid indemnities Handling costs Subrogations Reinsurers' share in paid claims (thousand kroons) * Leks e AS merged with Balti e AS to BICO-LEKS e AS from II half-year of 2; here consolidated data is presented TOTAL

63 INSURANCE IN BALTIC STATES

64 INSURANCE MARKET IN BALTIC STATES, 2 Developments of Estonian insurance market are subsequently examined together with the respective developments in Latvia and Lithuania. For the comparison of insurance business in different countries the volumes gross premiums are generally used. Besides these, also the number of insurance companies, gross premiums per person and ratio of gross premiums to GDP are used for comparing insurance business in different countries. In 2 the total of gross premiums of all three Baltic countries was 365 million USD (in 1999 this figure was 369 m. USD), thereof premiums collected from non-life insurance constituted 88% and those received from life insurance 12%. The importance of each country in the Baltic insurance market was as follows: Latvia 43%, Lithuania 3% and Estonia 27% (based on the gross premiums volume). In case of the growth of gross premiums we must make a distinguish between nominal and actual growth of premiums. The actual growth reveals the actual growth of premium volume, whereas the inflation effects have been eliminated from nominal growth. In 2 both the nominal and actual growth of premiums were positive in Estonia, i.e. the premium volume grew also in actual figures. Premium volume increased due to life insurance sector (the market had overcome the 1999 bankruptcy wave of life insurers), the growth of non-life premiums has been constantly decreasing. In Latvia the nominal growth of premiums was positive, but the actual growth was negative; in Lithuania both the nominal and actual growth of premiums were negative. Also in Latvia and Lithuania the gross premiums growth was influenced mainly by life insurance sector, but in adversative direction to that in Estonia. In 2 the actual growth rate of gross premiums in Estonia was 12.6% (in 1999 the respective rate was 7.9%, incl. life insurance 1.5%). In Latvia the actual growth of gross premiums was -1.5%, incl. life insurance % (in 1999 it was 4.8%, incl. life insurance -9.9%). In Lithuania the actual growth of gross premiums was -2.3%, incl. life insurance 1.6% (in 1999 it was -1.6%, incl. life insurance 11.%). The number of insurance companies in all three Baltic states was 73 in 2, thereof 2 were life insurers. The number of insurers with foreign shareholders was 34 (in 1999 it was 39), thereof 1 insurers were situated in Estonia, 14 in Latvia and 1 in Lithuania. The relative importance of life insurance and non-life insurance is calculated on the basis of gross premiums. 88% of gross premiums of Baltic states were received from non-life insurance and 12% were collected from life insurance. In Estonia the relative importance of life insurance was 19.1% of gross premiums and in Lithuania the respective ratio was 18.5%. In comparison with Estonia and Lithuania, we can see that the relative importance of life insurance in Latvia has decreased over the last years, in 2 the relative importance of life insurance was 4% (in 1999 it was 7.6%). We should separately mention reinsurance, i.e. insurers writing reinsurance business. In 2 reinsurance premiums constituted 3.9% of gross premiums in Estonia (in 1999 it was 5.3%), in Latvia this share was 2.3% (in 1999 it was 5.2%) and in Lithuania 5.7% (in %).

65 The development level of insurance is well-characterised also by direct premium volume per person, i.e. how much the people spend on insurance in average. According to this ratio Estonia and Latvia are almost on the same level, in Estonia direct premiums per person constituted 69 USD and in Latvia 65 USD. In Lithuania this figure was only 28 USD per person. One of the reasons here is the fact that Lithuania, contrary to Estonia and Latvia, has not introduced the compulsory motor TPL insurance. Despite developments in the insurance sector, the relative importance of insurance business is still quite moderate in national economies of all three Baltic countries. The ratio of direct gross premiums to GDP (insurance penetration) was in 2 the highest in Latvia 2.2%. Latvia was followed by Estonia and Lithuania where these ratios were 1.9% and 1%, respectively.

66 Economy and insurance of Baltic States, 2 Estonia Latvia Lithuania GDP at current prices (million USD) Annual growth of consumer price index (%) 4, 2,6 1,4 Population (thousand) Number of insurers 15* incl. non-life insurance life insurance Total gross premiums (million USD) 97,7 157,8 19,3 incl. non-life insurance 79,8 151,6 9,2 life insurance 17,9 6,2 19,1 incl. direct insurance 93,9 153,7 13, reinsurance 3,8 4,1 6,2 Direct gross premiums per capita (USD) 68,6 64,8 27,9 incl. non-life insurance 55,5 62,2 22,7 life insurance 13,1 3, 6, Insurance penetration (%) 1,87 2,15,91 incl. non-life insurance 1,51 2,6,74 life insurance,36,9,17 Growth of gross premiums (%) 17,7 1,8 -,96 Real growth of gross premiums (%) 12,56-1,48-2,33 * incl. Estonian Traffic Insurance Foundation Life and non-life insurance market in Baltic States, * Non-life ins. (%) Life ins. (%) Non-life ins. (%) Life ins. (%) Non-life ins. (%) Life ins. (%) Non-life ins. (%) Life ins. (%) Non-life ins. (%) Life ins. (%) Estonia Latvia Lithuania 91,9 87,8 83,3 83,9 8,9 8,1 12,2 16,7 16,1 19,1 79, 9,1 9,7 92,5 96, 21, 9,9 9,3 7,5 4, 7,6 77, 83,2 81,8 81,5 29,4 23, 16,8 18,2 18,5 * Only direct insurance

67 Insurance market in Baltic States, Direct gross premiums m USD m USD m USD Estonia Latvia Lithuania Direct gross premiums per capita USD USD USD Estonia Latvia Lithuania Insurance penetration 2,4% 2,2% 2,% 1,8% 1,6% 1,4% 1,2% 1,%,8%,6%,4%,2%,% Estonia 2,4% 2,2% 2,% 1,8% 1,6% 1,4% 1,2% 1,%,8%,6%,4%,2%,% Latvia 2,4% 2,2% 2,% 1,8% 1,6% 1,4% 1,2% 1,%,8%,6%,4%,2%,% Lithuania Life insurance Non-life insurance

68 BASIC TABLES

69 Balance sheet of insurance companies, 31 December 2 kroons ASSETS NON-LIFE LIFE TOTAL Cash and bank account Receivables Direct insurance Policyholders Intermediaries Other Reinsurance Other receivables Unpaid share capital 6 6 Accrued income, prepayments Accrued income Deferred acquisition costs Other prepaid expenses Investments Land and buildings (less depreciation) Investments in affiliated companies Shares Bonds, loans Investments in associated companies Shares Other financial investments Shares and other securities Bonds, fixed interest securities Participation in joint investments Mortgage loans Other loans Deposits with credit institutions Other Unit-linked life ins. investments Intangible assets Fixed assets TOTAL ASSETS LIABILITIES Payables Direct insurance Policyholders Intermediaries Other Reinsurance Debts owed to credit institutions Other payables Accrued expenses, prepayments Accrued expenses Deferred acq. costs, reinsurers' share Other prepaid income Technical provisions Unearned premiums provisions (net) (Reinsurers' share) Life provisions (net) (Reinsurers' share) Outstanding claims provisions (net) (Reinsurers' share) Provision for bonuses (net) Other technical provisions (net) (Reinsurers' share) Unit-linked life ins. provisions (net) Subordinated loans Owners' equity Share capital Share premium General reserve Other reserves Profit/loss carried forward Profit/loss of the year Treasury shares TOTAL LIABILITIES

70 Balance sheets of life insurers, 31 December 2 kroons ASSETS BICO Hansapanga Nordika Sampo Eesti Seesam Ühispanga Total of life insurers Cash and bank account Receivables Direct insurance Policyholders Intermediaries Reinsurance Other receivables Accrued income, prepayments Accrued income Deferred acquisition costs Other prepaid expenses Investments Land and buildings (less depreciation) Other financial investments Shares and other securities Bonds, fixed interest securities Mortgage loans Other loans Deposits with credit institutions Unit-linked life ins. investments Intangible assets 3 3 Fixed assets TOTAL ASSETS LIABILITIES Payables Direct insurance Policyholders Intermediaries Reinsurance Debts owed to credit institutions Other payables Accrued expenses, prepayments Accrued expenses Deferred acq. costs, reinsurers' share Other prepaid income Technical provisions Life provisions (net) (Reinsurers' share) Outstanding claims provisions (net) (Reinsurers' share) Provision for bonuses (net) Unit-linked life ins. provisions (net) Owners' equity Share capital Share premium General reserve Profit/loss carried forward Profit/loss of the year TOTAL LIABILITIES

71 Balance sheets of non-life insurers, 31 December 2 (1) kroons ASSETS BICO-LEKS Inges Nordika Salva Sampo Eesti Varakindlustus Cash and bank account Receivables Direct insurance Policyholders Intermediaries Other Reinsurance Other receivables Accrued income, prepayments Accrued income Deferred acquisition costs Other prepaid expenses Investments Land and buildings (less depreciation) Investments in affiliated companies Shares Bonds, loans Investments in associated companies Shares Other financial investments Shares and other securities Bonds, fixed interest securities Participation in joint investments 2 8 Mortgage loans Other loans Deposits with credit institutions Other Intangible assets Fixed assets TOTAL ASSETS LIABILITIES Payables Direct insurance Policyholders Intermediaries Other Reinsurance Debts owed to credit institutions Other payables Accrued expenses, prepayments Accrued expenses Deferred acq. costs, reinsurers' share Technical provisions Unearned premiums provisions (net) (Reinsurers' share) Outstanding claims provisions (net) (Reinsurers' share) Other technical provisions (net) (Reinsurers' share) Subordinated loans 15 Owners' equity Share capital Share premium General reserve Other reserves Profit/loss carried forward Profit/loss of the year Treasury shares TOTAL LIABILITIES

72 Balance sheets of non-life insurers, 31 December 2 (2) kroons ASSETS Seesam Zürich Total of nonlife insurers Estonian Traffic Ins. Foundation Cash and bank account Receivables Direct insurance Policyholders Intermediaries Other Reinsurance Other receivables Accrued income, prepayments Accrued income Deferred acquisition costs Other prepaid expenses Investments Land and buildings (less depreciation) Investments in affiliated companies Shares Bonds, loans Investments in associated companies Shares Other financial investments Shares and other securities Bonds, fixed interest securities Participation in joint investments 2 8 Mortgage loans Other loans Deposits with credit institutions Other Intangible assets Fixed assets TOTAL ASSETS LIABILITIES Payables Direct insurance Policyholders Intermediaries Other Reinsurance Debts owed to credit institutions 12 5 Other payables Accrued expenses, prepayments Accrued expenses Deferred acq. costs, reinsurers' share Technical provisions Unearned premiums provisions (net) (Reinsurers' share) Outstanding claims provisions (net) (Reinsurers' share) Other technical provisions (net) (Reinsurers' share) Subordinated loans 15 Owners' equity Share capital Share premium General reserve Other reserves Profit/loss carried forward Profit/loss of the year Treasury shares TOTAL LIABILITIES

73 Profit/loss account of life insurers, 2 kroons BICO Hansapanga Nordika Sampo Eesti Seesam Ühispanga Total of life insurers (A1) Gross premiums (A2) Ceded premiums (A) Net premiums written (A1-A2) (B1) Investment income from subsidiaries (B2) Income from land and buildings (B3) Income from other investments (B4) Change in investments' value (B5) Profit from investment sales (B) Investment income (B1+...+B5) (C1) Managing expenses (C2) Investment expenses from subsidiaries (C3) Change in invest. value (C4) Loss from investment sales (C) Investment expenses (C1+...+C4) (D) Net investment income (B-C) (E) Unrealized gains/losses from inv. ¹ (F1) Sums insured (F2) Surrenders (F2) Claim handling expenses (F3) Reinsurers' share in claims paid (F) Net claims paid (F1+F2+F3-F4) (G1) Change in OCP (incr. -) (G2) Change in reinsurers' OCP (incr. +) (G) Net change in OCP (G1+G2; incr.-) (H) Net claims incurred (F-G) (I1) Change in LP (incr. -) (I2) Change in reinsurers' LP (incr. +) (I) Net change in LP (I1+I2; incr.-) (J) Bonuses (J) Net change in other tech. prov. (incr. -) (L1) Acquisition costs (L2) Change in deferred acq. costs (incr.+) (L3) Administrative expenses (L4) Reinsurance commissions (L5) Reinsurers' share in def. acq. costs (incr.-) (L) Operating expenses (L1-L2+L3-L4-L5) (M) Net other technical income (N) Loss from portfolios accepted (N) TECH. RESULT (A+D+E-H+I+J+K-L+M-N) (P) Net other income (Q) NET PROFIT/LOSS (O+P) Abbreviations: LP - Life insurance provisions OCP - Outstanding claims provision ¹ This shows unrealized gains/losses from investments of unit-linked life insurance

74 Profit/loss account of non-life insurers, 2 (1) kroons BICO-LEKS ² Inges Leks ² Nordika Salva (A1) Gross premiums ¹ (A2) Ceded premiums (A) Net premiums written (A1-A2) (B1) Change in UPP (incr. -) (B2) Change in reinsurers' UPP (incr. -) (B) Net change in UPP (B1+B2; incr.-) (C) Earned premiums (A+B) (D) Other technical income (E1) Total claims paid (E2) Claim handling expenses (E3) Subrogations (E4) Reinsurers' share in claims paid (E) Net claims paid (E1+E2+E3-E4) (F1) Change in OCP (incr. -) (F2) Change in reinsurer's OCP (incr. +) (F) Net change in OCP (F1+F2; incr.-) (G) Net claims incurred (E-F) (H) Change in other tech. prov. (incr.-) (I1) Operating expenses (I2) Change in deferred acq. costs (incr.+) (I3) Administrative expenses (I4) Reinsurance commissions (I5) Reinsurers' share in def. acq. costs (incr.-) (I) Operating expenses (I1-I2+I3-I4-I5) (J) Other technical charges (K) TECH. RESULT (C+D-G+H-I-J) (L1) Income from subsidiaries (L2) Income from land and buildings (L3) Income from other investments (L4) Change in investments' value (L5) Profit from investment sales (L) Investment income (L1+...+L5) (M1) Managing expenses (M2) Expenses from subsidiaries (M3) Change in investments' value (M4) Loss from investment sales (M) Investment expenses (M1+...+M4) (N) Net investment income (L-M) (O) Net other income (P) NET PROFIT/LOSS (K+N+O) Abbreviations: UPP - Unearned premiums provision OCP - Outstanding claims provision ¹ Gross premiums of non-life companies are not off-set against mandatory transfers to ETIF (8% of motor TPL premiums); the expense is included in "Other technical charges" (J) ² From 2-nd half of 2 Leks e AS was merged with Balti e AS (under new name BICO-LEKS e AS)

75 Profit/loss account of non-life insurers, 2 (2) kroons Sampo Eesti Varakindlustus Seesam Zürich Total of nonlife insurers Estonian Traffic Ins. Foundation (A1) Gross premiums ¹ (A2) Ceded premiums (A) Net premiums written (A1-A2) (B1) Change in UPP (incr. -) (B2) Change in reinsurers' UPP (incr. -) (B) Net change in UPP (B1+B2; incr.-) (C) Earned premiums (A+B) (D) Other technical income (E1) Total claims paid (E2) Claim handling expenses (E3) Subrogations (E4) Reinsurers' share in claims paid (E) Net claims paid (E1+E2+E3-E4) (F1) Change in OCP (incr. -) (F2) Change in reinsurer's OCP (incr. +) (F) Net change in OCP (F1+F2; incr.-) (G) Net claims incurred (E-F) (H) Change in other tech. prov. (incr.-) (I1) Operating expenses (I2) Change in deferred acq. costs (incr.+) (I3) Administrative expenses (I4) Reinsurance commissions (I5) Reinsurers' share in def. acq. costs (incr.-) (I) Operating expenses (I1-I2+I3-I4-I5) (J) Other technical charges (K) TECH. RESULT (C+D-G+H-I-J) (L1) Income from subsidiaries (L2) Income from land and buildings (L3) Income from other investments (L4) Change in investments' value (L5) Profit from investment sales (L) Investment income (L1+...+L5) (M1) Managing expenses (M2) Expenses from subsidiaries (M3) Change in investments' value (M4) Loss from investment sales (M) Investment expenses (M1+...+M4) (N) Net investment income (L-M) (O) Net other income (P) NET PROFIT/LOSS (K+N+O) Abbreviations: UPP - Unearned premiums provision OCP - Outstanding claims provision ¹ Gross premiums of non-life companies are not off-set against mandatory transfers to ETIF (8% of motor TPL premiums); the expense is included in "Other technical charges" (J)

76 Profit/loss account of motor TPL, 2 kroons BICO-LEKS ² Inges Leks ² Nordika Salva Sampo Eesti Varakindlustus Seesam Total of nonlife insurers Estonian Traffic Ins. Foundation (A1) Gross premiums ¹ (A2) Ceded premiums (A) Net premiums written (A1-A2) (B1) Change in UPP (incr. -) (B2) Change in reinsurers' UPP (incr. -) (B) Net change in UPP (B1+B2; incr.-) (C) Earned premiums (A+B) (D) Other technical income (E1) Total claims paid (E2) Claim handling expenses (E3) Subrogations (E4) Reinsurers' share in claims paid (E) Net claims paid (E1+E2+E3-E4) (F1) Change in OCP (incr. -) (F2) Change in reinsurer's OCP (incr. +) (F) Net change in OCP (F1+F2; incr.-) (G) Net claims incurred (E-F) (H) Change in other tech. prov. (incr. -) (I1) Operating expenses (I2) Change in deferred acq. costs (incr.+) (I3) Administrative expenses (I4) Reinsurance commissions (I5) Reinsurers' share in def. acq. costs (incr.-) (I) Operating expenses (I1-I2+I3-I4-I5) (J) Other technical charges (K) TECH. RESULT (C+D-G+H-I-J) Abbreviations: UPP - Unearned premiums provision OCP - Outstanding claims provision ¹ Gross premiums of non-life companies are not off-set against mandatory transfers to ETIF (8% of motor TPL premiums); the expense is included in "Other technical charges" (J) ² From 2-nd half of 2 Leks e AS was merged with Balti e AS (under new name BICO-LEKS e AS)

77 Profit/loss account of non-life business excl. motor TPL, 2 kroons BICO-LEKS ¹ Inges Leks ¹ Nordika Salva Sampo Eesti Varakindlustus Seesam Zürich Total of nonlife insurers Estonian Traffic Ins. Foundation (A1) Gross premiums (A2) Ceded premiums (A) Net premiums written (A1-A2) (B1) Change in UPP (incr. -) (B2) Change in reinsurers' UPP (incr. -) (B) Net change in UPP (B1+B2; incr.-) (C) Earned premiums (A+B) (D) Other technical income (E1) Total claims paid (E2) Claim handling expenses (E3) Subrogations (E4) Reinsurers' share in claims paid (E) Net claims paid (E1+E2+E3-E4) (F1) Change in OCP (incr. -) (F2) Change in reinsurer's OCP (incr. +) (F) Net change in OCP (F1+F2; incr.-) (G) Net claims incurred (E-F) (H) Change in other tech. prov. (incr. -) (I1) Operating expenses (I2) Change in deferred acq. costs (incr.+) (I3) Administrative expenses (I4) Reinsurance commissions (I5) Reinsurers' share in def. acq. costs (incr.-) (I) Operating expenses (I1-I2+I3-I4-I5) (J) Other technical charges (K) TECH. RESULT (C+D-G+H-I-J) Abbreviations: UPP - Unearned premiums provision OCP - Outstanding claims provision ¹ From 2-nd half of 2 Leks e AS was merged with Balti e AS-ga (under new name BICO-LEKS e AS)

78 Insurance premiums and claims, LIFE INSURANCE Changes compared to previous year NON-LIFE INSURANCE Changes compared to previous year TOTAL OF DIRECT INSURANCE Changes compared to previous year REINSURANCE Changes compared to previous year TOTAL Changes compared to previous year Gross premiums (thousand kroons ,7 % ,9 % ,4 % times ,9 % ,8 % ,4 % ,2 % ,9 % ,7 % ,1 % ,3 % ,3 % , % ,2 % ,9 % ,3 % ,6 % times ,4 % ,6 % ,5 % ,7 % ,7 % ,1 % Reinsurance (thousand kroons ,4 % ,8 % ,2 % times ,5 % ,8 % ,7 % ,3 % 3 3-5, % ,4 % ,8 % ,5 % ,4 % ,5 times ,2 % ,5 % ,4 % ,9 % ,4 % ,5 % ,3 % ,6 % , % ,5 % ,4 % Net premiums (thousand kroons ,4 % , % , % times ,6 % times ,8 % ,2 % ,4 % , % ,2 % ,7 % % ,9 % ,1 % ,4 % ,6 % ,2 % ,5 times , % ,7 % % ,9 % ,2 % ,4 % Claims reported (in units) ,8 % ,6 % ,4 % ,5 % times ,5 % , % ,1 % , % ,5 % ,6 times ,3 % ,7 % , % Claims settled (in units) ,4 % ,4 % ,1 % % times ,6 % ,7 % ,6 % ,8 % ,9 % ,6 times ,9 % , % , % Claims paid (thousand kroons ,9 % ,9 % ,7 % ,9 % ,2 % ,5 % ,6 % ,5 % ,2 % ,1 % ,7 % ,9 % ,3 times ,9 % ,2 % ,2 % ,5 % ,8 % ,9 % ,9 % ,2 % , % ,6 % ,6 % Reinsurance (thousand kroons ,6 % ,7 % ,5 % ,5 % ,2 times ,1 % ,5 % ,5 % ,4 % ,3 % ,6 % ,6 % ,8 times ,7 % ,1 % ,1 % ,5 % ,1 % , % ,9 % Net claims paid (thousand kroons ,6 % ,5 % ,8 % ,8 % ,8 % ,3 % ,9 % ,5 % ,4 % , % ,9 % ,7 % ,3 times ,5 % ,6 % ,2 % ,9 % ,8 % , % ,9 % ,8 % ,5 % ,1 % ,1 %

79 Life insurance contracts, premiums and claims per insurer, (1) AB ¹ BICO Eesti Hansap. Leks ² Nordika Polaris- Elu Sampo Eesti Seesam ³ Ühisp. TOTAL Contracts in force (in units), 31 December Sums insured (thousand kroons) New contracts (in units) Gross premiums (thousand kroons) Reinsurance (thousand kroons) Net premiums (thousand kroons) Claims reported (in units) of which surrenders (in units) data not available ¹ terminated its business in 1999; data of new contracts, claims settled and claims reported for 1999 include only I half-year, data for II half-year not available ² Leks e AS merged with Ühispanga e AS at the end of 1999 ³ In February/March of 2 Seesam e AS took over contracts of KAS Polaris-Elu and contracts of AB e AS (these companies went into bankruptcy in 1999); not included to contracts in force at the end of 1999

80 Life insurance contracts, premiums and claims per insurer, (2) AB ¹ BICO Eesti Hansap. Leks ² Nordika Polaris- Elu Sampo Eesti Seesam ³ Ühisp. TOTAL Claims settled (in units) of which surrenders (in units) Claims paid (thousand kroons) of which sums insured (thousand kroons) surrenders (thousand kroons) Reinsurance (thousand kroons) Net claims paid (thousand kroons) data not available ¹ terminated its business in 1999; data of new contracts, claims settled and claims reported for 1999 include only I half-year, data for II half-year not available ² Leks e AS merged with Ühispanga e AS at the end of 1999 ³ In February/March of 2 Seesam e AS took over contracts of KAS Polaris-Elu and contracts of AB e AS (these companies went into bankruptcy in 1999); not included to contracts in force at the end of 1999

81 Life insurance contracts, premiums and claims by lines of business, (1) Term and whole life assurance Endowment Annuities Birth and marriage Unit linked life insurance Others TOTAL OF BASIC INSURANCE Supplementary insurances TOTAL WITH SUPPLEMENTARY INSURANCES Contracts in force (in units), 31 December Sums insured (thousand kroons) New contracts (in units) Gross premiums (thousand kroons) Reinsurance (thousand kroons) Net premiums (thousand kroons) Claims reported (in units) of which surrenders (in units)

82 Life insurance contracts, premiums and claims by lines of business, (2) Term and whole life assurance Endowment Annuities Birth and marriage Unit linked life insurance Others TOTAL OF BASIC INSURANCE Supplementary insurances TOTAL WITH SUPPLEMENTARY INSURANCES Claims settled (in units) of which surrenders (in units) Claims paid (thousand kroons) of which sums insured (thousand kroons) surrenders (thousand kroons) Reinsurance (thousand kroons) Net claims paid (thousand kroons)

83 Non-life insurance contracts, premiums and claims per insurer, (1)* ASA ¹ BICO-LEKS ² Eesti Varakindlustus ³ ETAS Farret Inges Kalju Leks ² Maksvit Nordika Contracts in force (in units), 31 December Gross premiums (thousand kroons) Reinsurance (thousand kroons) Net premiums (thousand kroons) Claims reported (in units) Claims settled (in units) Claims paid (thousand kroons) Reinsurance (thousand kroons) Net claims paid (thousand kroons) * Only direct insurance ¹ Data of claims settled and claims reported for 1999 include only I half-year, data for II half-year not available ² Leks e AS merged with Balti e AS to BICO-LEKS e AS from II half-year of 2 ³ Eesti Varakindlustuse AS and Sampo e AS merged with AS Sampo Eesti Varakindlustus (previously AS Eesti ) from the beginning of 2

84 Non-life insurance contracts, premiums and claims per insurer, (2)* Polaris- Vara Salva Sampo Eesti Varakindlustus ¹ Sampo ¹ Seesam Rahvusvaheline Zürich Eesti Ühiskindlustus Estonian Traffic Insurance Foundation Contracts in force (in units), 31 December Gross premiums (thousand kroons) Reinsurance (thousand kroons) Net premiums (thousand kroons) Claims reported (in units) Claims settled (in units) Claims paid (thousand kroons) Reinsurance (thousand kroons) Net claims paid (thousand kroons) * Only direct insurance data not available ¹ Eesti Varakindlustuse AS and Sampo e AS merged with AS Sampo Eesti Varakindlustus (previously AS Eesti ) from the beginning of 2 TOTAL

85 Non-life insurance premiums and claims by lines of business, (1)* Obligatory insurance Motor TPL insurance Professional liability Accident Short-term health insurance Sickness Travel insurance Land vehicles (KASKO) Railway rolling stock Aircrafts Ships Legal persons Property insurance Physical persons Total Gross premiums (thousand kroons) Reinsurance (thousand kroons) Net premiums (thousand kroons) Claims reported (in units) Claims settled (in units) Claims paid (thousand kroons) Reinsurance (thousand kroons) Net claims paid (thousand kroons) * Only direct insurance data not available

86 Non-life insurance premiums and claims by lines of business, (2)* Goods in transit Motor vehicle liability Aircraft liability Liability for ships Employers liability General liability Public liability Professional liability Product liability Credit Pecuniary loss Suretyship Misc. financial loss TOTAL Gross premiums (thousand kroons) Reinsurance (thousand kroons) Net premiums (thousand kroons) Claims reported (in units) Claims settled (in units) Claims paid (thousand kroons) Reinsurance (thousand kroons) Net claims paid (thousand kroons) * Only direct insurance

87 Expenses of insurers, 2* kroons Non-life insurance BICO-LEKS ¹ Inges Leks ¹ Nordika Salva Sampo Eesti Varakindlustus Seesam Zürich % Estonian Traffic Ins. Foundation Salaries and wages ,2% Social and sick-fund tax ,% Commissions to agents ,3% Commissions to legal persons ,3% Services bought ,4% Depreciation and devaluation ,% Reinsurance commissions ,% Other expenses ,7% TOTAL ,% Life insurance BICO Hansapanga Nordika Sampo Eesti Seesam Ühispanga Salaries and wages ,3% Social and sick-fund tax ,5% Commissions to agents ,5% Commissions to legal persons ,1% Services bought ,7% Depreciation and devaluation ,6% Other expenses ,3% TOTAL ,% % * The present table shows split of expenses within the sum of claim handling, acquisition, administrative and investment expenses ¹ From 2-nd half of 2 Leks e AS was merged with Balti e AS (under new name BICO-LEKS e AS)