russian reinsurance market: actual development & opportunities dmitry garmash deputy ceo, ph.d.,...

Russian reinsurance market: actual development & opportunities

Dmitry GARMASHDeputy CEO, Ph.D., MBAUnity Re Ltd.

Insurance market dynamics, bln RUR

• 2012 direct GWP = 27 bln USD; • 2012 reinsurance GWP = 1,4 bln USD

Inward reinsurance, bln RUR

Outward reinsurance, bln RUR

Market players

Business from outside Russia

Market players

2012 2011

Total reinsurance players 114 140

GWP > 3m USD 55 56

GWP > 16m USD 29 (80% GWP) 23 (68%)

GWP > 33m USD 11 (50%) 6 (31%)

Top 3 26% 21%

Top 10 48% 42%

Top 40 90% 86%

Share of genuine reinsurers 25% 25%

Top-10 reinsurers

Company GWP2012‘000 RUR

GWP2012m USD

1 Sogaz 4 448 659 148,32 Ingosstrakh 3 933 764 131,13 Kapital Insurance 2 812 068 93,74 Unity Re 1 548 223 51,65 Rosgosstrakh 1 458 804 48,66 Moscow Re 1 284 543 42,87 ACE Insurance Co. 1 213 268 40,48 Kapital Re 1 006 048 33,59 SCOR 951 638 31,7

10 Kama Re 706 664 23,5

Top-10 genuine reinsurers

Company GWP2012‘000 RUR

GWP2012USD

1 Unity Re 1 548 223 51,62 Moscow Re 1 284 543 42,83 Kapital Re 1 006 048 33,54 SCOR 951 638 31,75 Kama Re 706 664 23,56 Transsib Re 700 831 23,47 Russian Re 574 394 19,18 Rosles Re 429 616 14,39 Profile Re 214 776 71,6

10 Express Re 83 051 2,7

• Average non-life markets growth CIS-wide – 25%

• Inward reinsurance market – 2012 is the 1st year of growing!

• Complete move to the market oligopolistic structure:3-4 genuine reinsurers + 7-8 direct insurance players in R/I

• Number of peers has been squeezed much after 2009

• Market consolidation significant quality & expertise upgrade

• No binding to a world insurance cycle locally!

• Still huge difference between Gross & Net capacity

10

Actual trends

Capacity available

LOBs Net capacitym USD

Gross capacitym USD

Property 50 1 500

Energy 30 500

CAR/EAR 50 1 500

Marine hull 30 250

Aviation 20 500

Thanks!

Unity Re Ltd.

T: +7 495 956 6589F: +7 495 956 6598E: re@unityre.ruW: www.unityre.ru