1

Presentation

Ukrainian Agricultural

Insurance Pool

UAIPdate of foundation

12/05/2003

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IC ASKA – Leader of UAIPMembers of Ukrainian Agro Insurance Pool

- IC «ASKO- Donbass North»

- IC «Stroypolicy»

- IC «Investservice»

- IC «Providna»

- IC «Illichivs’ke»

- IC «Ukrainian Fire-insurance company»

- IC «PROSTO- insurance»

Members of UAIP

COOPERATIONThe Pool organized for proposition at the Ukrainian market of the quality agro insurance product according to the Law of Agro production market support and risks reinsurance among Pool members and at Western reinsurance market.

According to Agreement the Pool members propose insurance products of the plants and Livestock insurance to Insured, developed using international underqriting Methodics and statistical information of the Ukrainian Statistical Committee

The main goal of the Pool creating is providing of a high quality insurance and reinsurance for agro producers.

Work basis: cooperation at the parity and partnership basis, interests support of each Pool member, a single underwriting policy, adjusted conditions of the risks seeding and a single Loss adjustment requirements

For the goal achievement the Pool members conclude the contracts of Obligatory, Quota Share proportional reinsurance, contracts with independent loss adjustment procedure, exchange with the existents information, consulting and seminar activity.

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Products of the UAIPAt the present moment UAIP developed and uses following agro

insurance products

- Complex insurance of agro crops in case of their total or partial destruction at winter period

- Complex insurance of agro crops in case of their total destruction at winter period

- Complex insurance of agro crops in case of their total destruction at winter period and due to spring frosts

- Bank product (mortgage)

- Hail and Fire insurance

- MPCI

- Index Yield

- Livestock insurance

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Underwriting

UAIP cooperate with independent company

AgroRisk Ukraine LTDAgroRisk Ukraine

- Accept requests- questionnaires on insurance (single form for all Pool members, approved by reinsurers),

- Survey of agro producers fields, which conclude the insurance contracts with the Pool members

- Risk monitoring (following over requests and weather conditions, recommendations on monolits selection, loss adjustment surveys)

- Surveys destructed fields and made the Loss adjustment report

- Adjust the insurance products with Reinsurers

- Provide and adjust the Rates for insurance

Agrorisk is the main Underwriter for Pool members

POOL MEETING

UAIP provides the meeting of the Pool members not less than 4 times per year.

In case of necessity each Pool member can ask about the meeting.

Questions of the meetings:

- Cooperation questions (including contract arrangement, underwriting conditions)

- The conditions of insurance programs (improvement, requirements concerning new products) due to experience of Pool members

- Work of the Pool for the next Underwriting period

- Reinsurance programs, including insurance rates and methodology of their calculation

- Concurrent activity , general information about Agro insurance market

- Questions concerning the membership

- Principles of risks accepting on Facultative basis

- Contractor cooperation with AgroRisk Ukraine LTD

- Sales strategy and work coordination with agro producers

CERTIFICATE

RETENTION

The members of Ukrainian Agricultural Insurance Pool -residents

retained 22,5%

of liability on each Risk.

77,5% seeded to Reinsurers according to Obligatory Contract (Quota Share)

WESTERN REINSURANCE

The share of Reinsurers made 77,5%

of liability on each risk insured,

and distributed as follows

SWISS RE 45% (Leader Reinsurer)

HANNOVER RE 27,5%

POLISH RE 5%

The Limits of Liability

The Limits of Liability on agregate insurance for Pool members made

No limit on Farm

USD 10 000 000 by Oblast

USD 5 000 000 by Rayon

No limit on UkraineLimits are flexible and there is a possibility of their increasing after adjustment with Leading

Reinsurer

Finance cooperation

The cooperation of the members of UAIP, residents and reinsurers

regulated with the terms and conditions of the Treaty.

Documents:

-Information Bordereaux

- Premium Bordereaux

-Claim Bordereaux

Compensation payment

IC ASKA, as a Pool leader provides the compensation payments in terms and conditions, stipulated with the Treaty after

Receiving of compensations from Reinsurers,

Except for net – liability of IC ASKA,

which is payed out during 5 days at confirmation of event

as Insurance event.

INSURANCE PREMIUMS

2005-06 2006-07 2007

The Total Insurance Premiums for 2005, 2006, 2007, 2008, collected by UAIP:

- 2005-06 – UAH 3 479 887,50

- 2006-07 - UAH 2 318 223,99

- 2007-08 - UAH 7 972 321,11,

Number of Contracts - 508

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

3479.89

2318.2

7972.3

2005-062006-072007-08

период по сезонам

Соб

рано

стр

ахов

ых

прем

ий,

тыс.

грн

.

Thousand UAH

2005-06 2006-07 2007-08

Донецкая 38,74%Луганская 10,49%Харьковская 10,22%Тернопольская 8,77%Сумская 8,0%Николаевская 4,62%Львовская 3,9% Херсонская 3,62%Полтавская 3,19%Хмельницкая 3,16% Черновецкая 2,77%Киевская 1,36%Житомирская 0,5%Одесская 0,33%Запорожская 0,13%Кировоградская 0,11%Волынская 0,06% Винницкая 0,02%

Mykolaivska, 4,62%

L’vivs’ka 3,9%

Khersons’ka, 3,62%

Poltavs’ka, 3,19%Khmel’nyts’ka 3,16%

Chernivets’ka, 2,77%

Kyivs’ka, 1,36%

Ternopil’s’ka, 8,77%

Sums’ka, 8%

Lugans’ka, 10,49%

Kharkivs’ka, 10,22%

Donets’ka, 38,74%

2005-2006, the Structure of collected by UAIP Brutto premiums by oblasts UAH 3 479 887,50.

Insurance premiums by Oblasts

2006-2007, структура собранных УССП страховых платежей, брутто по областям Украины, всего 2 318 223,99 грн.

Донецкая-29,07%Сумская - 16,01%Запорожская - 12,68Тернопольская - 9,66%Николаевская - 8,2%Херсонская - 7,79%Одесская - 6,37%Закарпатская - 3,02% Луганская - 1,45%Днепропетровская - 1,3%Черновецкая - 1,15%Харьковская - 1,13%Винницкая - 0,89%Черкасская - 0,66%Житомирская - 0,24% Киевская -0,21%Львовская - 0,08%Ровенская - 0,04%Кировоградская - 0,04%

Insurance premiums by Oblasts

Zaporiz’ka, 12,68%

Sums’ka, 16,01%

Donets’ka , 29,5%

Mykolaivs’ka, 8,2%

Ternopil’s’ka, 9,66%

Khersons’ka, 7,79%

Odess’ka, 6,37%

Zakarpats’ka, 3,02%

Lugans’ka, 1,45%

Dnipropetrovs’ka, 1,3%

2007-2008, структура собранных УССП страховых платежей, брутто по областям Украины, всего 7 972 321,11 грн.

Донецкая-16,3%Тернопольская - 11,71%Суммская - 11,67%Харьковская - 10,98%Одесская - 10,33% Луганская - 6,36%АРК - 6,02%Запорожская - 5,89%Ивано-Франковская - 4,11%Черкасская - 3,44%Винницкая - 3,33%Львовская - 2,53%Ровенская - 1,95%Кировоградская - 1,34%Волынская - 1,01%Черниговская - 0,96%Житомирская - 0,83%Полтавская - 0,81%Черновецкая - 0,3%Херсонская - 0,14%

Donets’ka , 16,3%

Ternopil’s’ka, 11,71%

Sums’ka, 11,67%

Kharkivs’ka, 10,98%

Odess’ka, 10,33%Lugans’ka, 6,36%

Crimea, 6,02%Ivano-Frankivs’ka, 4,11%

Cherkass’ka, 3,44%

Vinnits’ka, 3,33%

L’vivs’ka, 2,53%

According to results of 2005, 2006, 2007, 2008 the insured acreage and livestock, insured by UAIP made :

- period 2005-06 - 34 608,20 ha

- period 2006-07 - 58 156,02 ha

- period 2007-08:

246 115,88 ha

218 heads

Acreage insured

2005-06 2006-07 2007

Тысяч га

0

50

100

150

200

250

300

35

58

246

2005-06

2006-07

2007-08

период по годам

Пл

ощад

и, т

ыся

ч ге

ктар

Тысяч га

2005-06 2006-07 2007-08

Indemnities

2005-2006

3150

3200

3250

3300

3350

3400

3450

35002005-2006 3479.89

2005-2006 3273.93

ПРЕМИИ

УБЫТКИ

2006-2007

0

500

1000

1500

2000

2500 2006-2007 2318.2

2006-2007 1020.7

ПРЕМИИ

УБЫТКИ

According to results of 2005,2006,2007,2008

the indemnities of UAIP made:

Premiums 2005-2006 – UAH 3 479 887,50 2006-2007 - UAH 2 318 223,99

Losses - UAH 3 273 930,00 UAH 1 020 719,47

Loss Ratio 94,08% 44,03%

2007-2008

0

1000

2000

3000

4000

5000

6000

7000

8000

2007-2008 7972.3

2007-2008 439.4

ПРЕМИИ

УБЫТКИ

Premiums 2007-2008 – UAH 7 972 321,11 Payed claims - UAH 439 453,88

Loss Ratio 5,5%

Previous data(final sums on summer risks premiums are not available )

Risks Accepting

IC ASKA and all the Pool members are

ready to

Cooperation and accepting risks

On Facultative reinsurance, follow the policy of UAIP proposing quality and reliable reinsurance among Pool members (not more than 22,5%),

professional consults and underwriting.