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2015 Catastrophe Reinsurance in RomaniaJuly 2015

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Data Used

� Data used for 2015 Renewals

� 12 companies representing 83.66% of the market:

– Based on 2014 Overall property premium (Insurance Profile no. 1/2015)

� UNSAR members only purchase combined CAT XL capacity of EUR 1.45bn

FGU Capacity

1,045

909

RMS 1in250 As IF Vrancea

1977*

In E

UR

m

1,451

* Based on RMS for Romania (UNSAR members);

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Catastrophe Reinsurance Capacity Benchmark – Return Period of Major Peril

� Romanian Catastrophe purchase is in line with other countries*

285

376

280283287

176

500

175

243

550

361

Slovakia

FL

Bulgaria

EQ

Group

Covers

Turkey

EQ

Greece

EQ

Cyprus

EQ

Portugal

EQ

Poland

FL

Romania

EQ

Israel

EQ

Czech

Rep FL

Hungary

EQ

2,200

* Return Period Calculated based on RMS for Romania (UNSAR members);

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Reinsurers’ Ratings on 2015 Romanian CAT XLs – External Market Placement

14.1%

BBB

0.1%

A-

AA-29.0%

AA

5.8%

23.5%A

A+

27.4%

* Rating by S&P (AM Best where S&P unavailable)

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Catastrophe Events are covered by Reinsurers

More than 50% Reinsured

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Reinsurance protects financial stability of Insurers

2002 Czech Market Flood Claims (in USD)

449,611,774

1,416,875,283

200,000,000

400,000,000

600,000,000

800,000,000

1,000,000,000

1,200,000,000

1,400,000,000

1,600,000,000

Czech 2001 Property

Premium (Household and

Industrial Commercial)

Gross 2002 Flood Loss

Paid by Reinsurers

97%

Paid by Czech

Insurers 3%

Czech Floods 2002‒ Vlatva river burst banks

‒ Prague submerged 3 meters

‒ Worst flooding seen in over a century

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Reinsurers provide quick cash flow in Cat events

Hurricance Katrina 2005

‒ Total Estimated Insured Loss USD 75bn

‒ Flooded 80% of New Orleans

‒ Almost 2,000 people killed

4.80%

13%

6.50%

17.0%

40.0%

0% 10% 20% 30% 40% 50%

26-30 Days

21-25 Days

16-20 Days

11-15 Days

0-10 Days

Hurricane Katrina (2005)Average Settlement Speed of Lloyd’s Reinsurers

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