Pyatnits SC) EIJSC 39362474 Moscow

2008 ANNUAL REPORT Table of contents

Address by the General Director ...... 4 Reinsurance ...... 49

Position of Ingosstrakh in the Insurance Market ...... 6 Investments ...... 52

Quantitative and qualitative insurance Marketing ...... 54 market parameters ...... 9 Personnel ...... 56 Key Events and Trends in the Russian Insurance Market in 2008 ...... 13 Risk management ...... 62

Current Positioning of Ingosstrakh in the Market ...... 16 Communications ...... 70

Deliverables in major areas of business ...... 20 Government relations ...... 73

Motor insurance ...... 23 Public relations ...... 74

Corporate property and liability insurance ...... 27 Charity and sponsorship ...... 76

Voluntary Medical insurance ...... 29 Key financial and economic performance parameters ...... 78 Insurance of aviation risks ...... 31 Performance results ...... 81 Insurance of space risks ...... 32 Financial stability rating ...... 81 Cargo insurance ...... 33 Auditor’s opinion on accounting statements ...... 83 Marine hull, machinery and P&I insurance ...... 36 Balance sheet of the insurance organization ...... 86 Transport operators insurance ...... 37 Profit and loss statement ...... 90 Travel insurance ...... 39 Historical Milestones ...... 94 Incoming reinsurance ...... 40 Ingosstrakh IJSC: account and address details ...... 104 Life insurance ...... 43

Credit risks insurance ...... 44

Regional network ...... 45

Open Joint Stock Insurance Annual Report Annual Report Open Joint Stock Insurance Company Ingosstrakh 2008 2008 Company Ingosstrakh

Address by the General Director

Another major achievement by Ingosstrakh IJSC in 2008 is its retention of BBB- financial strength rating assigned by Standard & Poor’s International Rating Agency, especially against the background of the global financial crisis, and reconfirmation of its A++ rating from Expert RA, a leading Russian rating agency.

The achievements of Ingosstrakh IJSC in 2008 were marked by a number of prizes and awards. In May 2008, Ingosstrakh won the Golden Salamander Award. In April 2008, Ingosstrakh was nominated winner of BRAND of the YEAR/EFFIE 2007 Awards, and shortly afterwards, in the summer, it won the 5 Glory of the Nation Award and received the Golden Diploma. In December, it was announced the winner of the National Company of the Year Business Awards and Business Atlants-2008. Ingosstrakh IJSC is the only Russian insurer to be included in the rating of Russia’s most valuable brands for the fourth consecutive year. The Company became winner in the Information Transparency category of Expert 400. Ingosstrakh IJSC is the winner of the Financial Elite of Russia Award as the Most Reliable Insurer.

Despite the triumph of leading from the front, last year brought us the grief of a great loss. In April 2008, the Company sustained a tragic loss upon the sudden death at the age of 63 of Vyacheslav I. Sherbakov, the President and Chairman of the Board of Directors of Ingosstrakh IJSC. We grieve the passing Dear Ladies and Gentlemen! of our companion, mentor, and the person who had made an immense contribution to the development of Russian and international insurance. The cherished memory of Vyacheslav Sherbakov will live in our hearts forever… We hereby present to you the Annual Performance Report of Open Joint- Stock Insurance Company Ingosstrakh for 2008. The уear 2009 will be challenging for all of us. The financial crisis will test our ability to work in a professional manner, meet our commitments, and cope Despite the challenges in the global and Russian economies, the Company has with the stress in a constantly changing environment. However we continue managed to complete the year 2008 successfully. Ingosstrakh IJSC has met all to be optimistic about the future. Ingosstrakh’s unique experience, the daily of its targets in all areas of insurance. Gross Written Premium of the Russian efforts of its professional team and the largest financial assets as compared companies of INGO Group in 2008 amounts to RUB 63.2bn, which is 24% with other Russian companies make it always ready to help its clients in higher than in 2007. The Company’s claims paid grew by 33% to RUB 39.4bn. handling and overcoming the challenges they are faced with and protect their The asset value of the Russian entities in the Group grew by 14% to RUB 62.8bn. proprietary interests, as well as their lives and health. The increase in the Group’s insurance reserves is reported to amount to 17% to RUB 47.6bn as at year end. The Group’s equity as at January 1, 2009 I am grateful to our clients, shareholders and partners for their trust and many increased to RUB 12.0bn, or 5% more than in 2007. The profit before tax years of mutually beneficial cooperation. generated by Ingosstrakh IJSC in 2008 amounted to RUB 0.9bn. The Company has reaffirmed its leadership in private, property and liability insurance. Regards, Ingosstrakh IJSC provides reliable insurance coverage to the sovereign interests General Director and the interests of Russian residents, companies and corporations. The main A.V. Grigoriev deliverable of this effort is the trust of more than 2 million private and corporate clients. Position of Ingosstrakh IJSC in the Insurance Market Annual Report Open Joint Stock Insurance 2008 Company Ingosstrakh

Quantitative and qualitative insurance 46.3 bn RUB market parameters The second place in the market in terms of volume of the Premium income from direct insurance premium insurance and reinsurance of risks increased to RUB 46.3bn As of January 01 2009, the State Register of insurers contained information about 913 insurers, including 786 insurance companies and 127 insurance brokers. During the year, the number of insurance companies was reduced by 71 (with an aggregate authorized capital of around RUB 10bn), while the number of bro- RUB 28.6bn: property kers increased by 39. In general, in 2008 the aggregate author- insurance premium 0.4 %ized capital of Russian insurers (excluding brokers) went down by RUB 0.7bn (-0.5%) from RUB 154.6bn to 153.9bn. 9 50%: share of individual insurance in the total direct insurance premium 28.6 BREAKDOWN OF INSURANCE COMPPANIES BY AUTHORIZED CAPITAL SIZE

bn RUB Categories 2004 2005 2006 2007 2008 Change Up to RUB 30mln 563 312 129 0 0 - 50% RUB 30 – 120mln 452 468 470 500 447 -10.6% RUB 120 – 150mln 80 94 103 118 98 -16.9% RUB 150 – 500mln 120 133 143 164 169 3.0%

The third place in compulsory RUB 500mln – 1bn 39 38 42 41 37 -9.8% 28.6 civil liability motor-vehicle Above RUB1bn 26 30 31 34 35 2.9% insurance market 2place Total: 1280 1075 918 857 786 -8.3% Personal insurance premium bn RUB e pool of Russian insurers boasts 35 companies with authorized capital income increased by 31.2% exceeding RUB 1bn. The number of companies in this category increased by only one, howeverr, the share of authorized capital of these companies in the aggregate capital of all Russian insurers grew from 35% in 2007 to 39% in RUB 5.1bn: insurance premium 2008. Pursuant to the Year 2008 results, this category accounts for 62.4% of income from compulsory civil liability all premiums in the insurance market (less CMI). 31.2% motor-vehicle insurance RUB 5.1 3bn RUB Position of Ingosstrakh IJSC in the Insurance Market Open Joint Stock Insurance Annual Report Annual Report Open Joint Stock Insurance Company Ingosstrakh 2008 2008 Company Ingosstrakh

As the result of the financial crisis, in 2009-2010 several hundred insurers The market continues to saturate. The top 10 Insurance Groups of 2008 now ac- may face solvency and current liquidity challenges or may encounter license count for 52.4% of the aggregate written premium in the insurance market (less revocation risks, therefore, they will either be forced to sell out to stronger compulsory medical insurance), while in the past year this percentage was 51.2%. players or to leave the market.

INSURANCE PREMIUM (CONTRIBUTIONS) AND INSURANCE COMPENSATIONS Insurance IN 2008, RUB BN market Insurance premium Increase 2007 vs. Insurance compensation Increase 2007 vs.

In 2008, Russian insurers increased written premium up to Voluntary insurance: 467.2 14.7% 195.8 23.7% RUB 952bn as compared with 2007 and insurance payments rose by 30% up to RUB 626.5bn (including compulsory medical life insurance 19.3 -14.9% 6.0 -62.0% insurance). 10 personal insurance 108.0 20.0% 61.6 24.6% 11 (other than life insurance) The growth of the insurance market in 2008 is reported to property (except 317.4 15.7% 125.6 37.3% be 22.7%. liability insurance)

The same growth of the insurance market without compulsory medical insur- liability insurance 22.5 11.0% 2.6 63.3% ance constitutes 14.2%. The decrease in the volume of written premium has been caused by the influence of world financial crisis. Its impact manifested Compulsory insurance (except 87.8 11.2% 54.0 18.2% itself already in Q4. The written premium (less compulsory medical insurance) compulsory medical insurance): reduction was reported to be 13.2%, the growth from Q4 2007 was reported to have been 1% only. of members of the armed forces 7.0 22.9% 6.2 41.5% and eligible persons As in the year before, the growth rate in payments (including Compulsory Medical insurance) exceeded the growth rate in written premium, which justifies of passengers 0.6 0.6% 0.003 -16.7% the fair attitude of insurers to their clients and their commitment to meeting compulsory motor TPL insurance 80.2 10.6% 47.8 16.3% their obligations. Market total without compulsory 555.0 14.2% 249.8 22.6% medical insurance:

Among all business lines the most outstanding results were achieved at personal insurance which demonstrated in 2008 20% premium growth. The volume of premium (less compulsory medical insurance) in property insurance grew by 15.7%, in liability insurance by 11% and in compulsory civil liability motor vehicle RUB BN insurance (hereinafter compulsory motor TPL insurance’) by 10.6%. Last year 952 brought no major changes in the breakdown of premium by insurance types; PREMIUM INCOME OF RUSSIAN over recent years the percentage of premium in various types of insurance has retained relative stability. INSURERS The total payments amounted to RUB 249.8bn, or 22.6% higher than in 2007. The payment ratio increased to 45% vs. 41.9% during the previous year. The highest growth rates are represented by the voluntary liability insurance sector (up 63.3%) and property insurance (up 37.3%). The payments in personal insurance increased by about 24.6%, while the same in compulsory motor TPL insurance grew by 16.3%.

Position of Ingosstrakh IJSC in the Insurance Market Position of Ingosstrakh IJSC in the Insurance Market Open Joint Stock Insurance Annual Report Annual Report Open Joint Stock Insurance Company Ingosstrakh 2008 2008 Company Ingosstrakh

DYNAMICS OF INSURANCE effects of the financial crisis for the Russian economy which resulted in lower dynamics in the car loan sector, which, in its turn, decreased the amount of PREMIUMS BREAKDOWN premium in the motor hull insurance sector in the credit segment.

In compulsory motor TPL insurance, the tendency is still towards outrunning growth in terms of the scope of payments (+16.3%) vs. growth in premium 555.0 (+10.6%), which results in a higher level of payments which grew by 3 per- 3.5 % centage points to 59.6% in 2008. The number of companies with the level of 486.1 payments exceeding 60% is 66, or 40% of 163 operators in the compulsory 4.7 % 19.5 % motor TPL insurance market. 407.1 18.5 % 378.0 3.9 % 349.9 Life 18.9 % In 2008, the compulsory motor TPL insurance market continued to consolidate. 27 % 7.2 % The top ten insurers in the compulsory motor TPL insurance market account for 18.3 % Personal 57.2 % 61.5% of the aggregate premium in this segment. During the year the Federal 14.0 % 56.4 % Property Insurance Surveillance Service revoked the licenses of 7 insurers operating in the 56.0 % RUB bn compulsory motor TPL insurance market. The aggregate written premium of 53 % 40.5 % Liability these companies in this segment amounted to some RUB 2bn in 2008. 4.1 % 4.1 % 4.2 % Compulsory motor TP 3.2 % 4.6 % 13 % 15.4 % 15.7 % 14.9 % 14.4 % Other compulsory, 12 less medical 13 004 005 006 007 008 2 2 2 2 2 Key Events and Trends in the Russian The most impressive dynamics in terms of premium in the insurance market was demonstrated by personal insurance (up 20% from 2007) which was driven mainly by the growing demand for accident insurance which is a requirement of Insurance Market mortgage, consumer and car loans along with the further evolution of voluntary medical insurance which employers now tend to offer as part of their corporate benefits packages to their employees. The greatest portion of personal in 2008 insurance in value terms is still accounted for by voluntary medical insurance. The general outcome of 2008 is that the insurance market has slowed in its development. The major trends and events of the past year are the following:

Impact of the global financial crisis on the insurance market in the Russian Federation; RUB BN 626.5 Deliverables in 2008 show that insurers started to feel the effects of the global TOTAL AMOUNT OF RUSSIAN financial crisis. The factors that contributed to the growth in premium during the preceding year began to negatively affect the insurance industry with equal INSURERS' PAYMENTS intensity. The higher level of personal income noted over the previous year gave in to a slump due to lower salary levels and higher unemployment rates, which eventually lead to a generally lower demand for insurance services. The elements of the insurance market that have been affected by the financial crisis the most are represented by financial institutions, motor insurance, mortgage insur- In voluntary property insurance, the major growth driver in 2008 is motor ance, and accident insurance required by lenders. insurance (the high growth is accounted for by bank insurance on the part of borrowers and lessees). In 2008, the premium in motor hull insurance increased by 30%. The dynamics could be even higher, however, in Q4 2008 following the

Adoption of a number of legislative initiatives; The higher level of claims payments in property insurance is primarily driven by the dynamic development of the motor insurance segment. During 2008 a number of legislative drafts were issued in order to incorporate changes in existing legislation and promote a number of new initiatives in the The table above shows an extremely low claims/payment ratio in voluntary implementation of new types of compulsory and/or imputed insurance: liability insurance. Even though it climbed to 11.6% from 7.9% the prior year, the ratio continues to remain impressively low. The higher payments demonstrate • The proposed amendments to the Tax Code introduce changes in taxation the deliverables of the effort invested by the Federal Insurance Surveillance rules as apply to premiums and payments in voluntary medical insurance. Service to mop up various schemes in this segment. Nevertheless, there still The doubling of the VMI deduction norm for corporate entities (6% of pay appear insurers who manage to take a lead in the market despite making zero roll costs instead of 3% of the same pursuant to the currently effective payments. These companies, however, usually tend to leave the market almost version of the code) could catalyze growth in this segment. The financial as fast as they access it. crisis,however, drives many companies towards the elimination of these costs from their balance sheets in order to generate savings on the social benefits Consolidation in insurance; for their employees. Russian insurance companies continued to consolidate through strategic • Russia’s accession to the international Green Card International Insurance investments, and merger and acquisition deals. In 1H 2008, insurers continued System as a necessary step towards further integration into the European to be active in the M&A sector, thirteen of which won wide media coverage. In community and acquisition of experience in loss adjustment. Q3 2008 the tendency towards consolidation through mergers and acquisitions slowed down, with only two notable transactions in the market. The lower • The Government has approved the medium-term development strategy for number of large transactions in Q3 and Q4 was largely caused by the global 14 the insurance industry (till 2012) which suggests introduction of a number of financial crisis. Following the banking sector, insurers were faced with asset 15 new types of compulsory insurance, mainly in the liability insurance area, liquidity challenges. These developments resulted in a higher number of including liability of medical professionals, construction specialists etc. companies willing to put themselves up for sale, while the number of potential buyers decreased for the same reasons. Growing losses in certain sectors of general insurance; Ongoing reduction of the number of insurance companies, and The claims/payment ratio in most types of insurance tended to increase, the active involvement of surveillance authorities to prevent primarily in the light of the outrunning growth of insurance payments: mala fide insurance activities.

Another reduction in the number of insurance companies was prompted by DYNAMICS OF GROWTH RATIOS the following:

IN 2007-2008 • The stringent position of the insurance regulating authority in relation to any tax optimization schemes has resulted in the disappearance of a large number of insurers; 2007 2008 • The dissolution of small and medium liquidity-challenged companies in the Voluntary insurance: 38.9% 41.9% market; margin and revenue reduction issues; losses in premiums caused by the financial crisis. life insurance 69.6% 31.1%

personal insurance 55.0% 57.0%

property insurance 33.3% 39.6%

liability insurance 7.9% 11.6%

Compulsory: 87.8% 88.8%

compulsory motor TPL insurance 56.7% 59.6%

compulsory medical insurance 95.9% 94.9%

INGOSSTRAKH'S GROSS Current Positioning WRITTEN PREMIUM of Ingosstrakh in the Market

Ingosstrakh is a universal insurance company providing services both to corporate clients and individuals. According to the Federal Insurance Surveillance Service, in 2008 Ingosstrakh IJSC

retained its position as the second largest after Rosgosstrakh RUB bn in terms of direct written premiums (less compulsory medical insurance).

During the year, all segments of Ingosstrakh’s business continued to develop 16 faster than the market in general. 17

In 2008, the Company boosted written premiums in direct insurance and reinsured risks by 19% from the prior year (according to the Federal Insurance Surveillance Service) to RUB 46.3bn. Ingosstrakh’s written premium in direct INGOSSTRAKH’S PERFORMANCE insurance increased by 20.1% to RUB 42.1bn. The best positive dynamics in IN DIRECT INSURANCE terms of insurance premiums (+31.2%) were reported by the personal insurance segment (other than life insurance), where written premiums were reported IN 2007-2008, RUB BN to amount to RUB 5.8bn. Property insurance brought RUB 28.6bn in written premiums, and voluntary medical insurance collected RUB 2.6bn. In compulsory motor TPL insurance, the volume of written premiums increased by 15.4% to RUB 5.1bn. The same in incoming reinsurance went 8.6% up to RUB 4.2bn. Type of 2008 Increase 2007 Increase Current insurance vs. 2007 vs. 2006 market share

Insurance 42.1 20.1% 35.1 15.1% 7.6% premium (total):

1. voluntary 37.0 20.7% 30.7 15.2% 7.9% insurance: RUB BN private 5.8 31.2% 4.4 31.9% 5.4% 46.3 (other than life) PREMIUM INCOME FROM DIRECT property 28.6 20.7% 23.7 13.7% 9.0% INSURANCE AND REINSURANCE (except liability OF RISKS insurance) liability 2.6 2.5% 2.5 4.5% 11.6% insurance

2. compulsory 5.1 16.1% 4.4 14.5% 5.8% insurance, including:

compulsory motor 5.1 15.4% 4.4 14.5% 6.3% TPL insurance

Ingosstrakh’s market share rose by 0.4 percentage points from 7.2% to 7.6%, thus Russian Federal Government issued a decree to introduce tougher requirements making the Company the second largest in the market (less compulsory medical to those insurers who are entitled to recourse to the support of the Federal insurance). State in loss insurance of agricultural crops. Today, these requirements are met by hardly more than 20 insurance companies, and Ingosstrakh IJSC is one of This result was achieved due to significant premium inflow in property and them. voluntary liability insurance. In 2008, the Company’s share in these two segments was reported to be 9.0% and 11.6%, respectively. Ingosstrakh’s leadership in these According to Q4 2008 results, Ingosstrakh’s IJSC written premiums in personal segments is driven by the company’s firm position in corporate insurance, motor insurance enabled it to outperform ROSNO for the first time in history and and special risk insurance. The Company’s strength lies in its experience in the made it first among the market players in terms of voluntary medical insurance. insurance of complex risks (shipowner’s liability and vessel hull insurance, aviation and space risk insurance), where Ingosstrakh IJSC is traditionally among the industry All in all, in terms of voluntary personal insurance in 2008 the Company, with its leaders. The Company’s established track record as the insurer of large-scale 5.4% in the personal insurance market, was outstripped by SOGAZ, ZhASO and commercial risks contributes to these outstanding results. ROSNO only.

One of Ingosstrakh’s priority development areas is the insurance of agricultural In compulsory motor TPL insurance, Ingosstrakh IJSC remains the third largest risks. The Company has been continuously expanding its presence in this segment insurer with 6.3% in the market. through active development in Russia's regions and the engagement of smaller clients through its agency network. The Company’s share in the scheme-devoid While it develops in the corporate insurance segment, the Company is working agricultural insurance market is now reported to amount to some 20%. In 2008, the on its retail (individual) insurance business. In 2008, retail insurance accounted for almost 50% of the aggregate premium in direct insurance vs. 47% in 2007. The 18 volume of Ingosstrakh’s aggregate written premium contributed by individual 19 insurers in 2008 amounted to RUB 20.8bn.

The major sources of retail growth in 2008 were voluntary motor insurance and personal insurance products, primarily medical insurance. 50% SHARE OF INDIVIDUAL INSURANCE IN THE TOTAL DIRECT INSURANCE PREMIUM

Retail Corporate insurance insurance

Voluntary motor Property & liability insurance insurance Voluntary motor Motor TPL insurance

Private insurance Private insurance

Property & liability Special risks insurance Motor TPL

Position of Ingosstrakh IJSC in the Insurance Market Position of Ingosstrakh IJSC in the Insurance Market Deliverables in major areas of business Annual Report Open Joint Stock Insurance 2008 Company Ingosstrakh

1.5mln compulsory civil liability motor-vehicle insurance contracts Motor insurance

In 2008, motor insurance continued to remain the most called for service in the Russian insurance market and the major RUB 1.6bn: vessel and ship690 owners business line in the portfolio of many leading insurers. For liability insurance income Ingosstrakh IJSC, this insurance segment accounted for more than 60% of proceeds from direct sales. The major driver for 1.5 mln the Company in the retail motor insurance sector was higher level of sales of new foreign cars in 1H 2008 and the launch of cooperation programs with car manufacturers.

In 2008 the Company entered more than 320,000 voluntary motor insurance contracts and almost 1.5mln compulsory motor TPL insurance contracts, and RUB 584mln: the largest payment the number of contracts increased by 54% and 14%, respectively. for property insurance .6 21%A significant increase in the number of voluntary motor insurance contracts was driven by the Company’s integration into the segment of medium-priced foreign 23 cars. In summaryy, in 2008 the volume of premiums in motor hull insurance went 584 320,000 up by 27%. 320,000 voluntary third-party liability insurance contracts 4.4 RUB 1.5 MLN THE NUMBER OF COMPULSORY RUB 690mln: the amount of insurance RUB 4.4bn: voluntary health payments for aviationmln risks CIVIL LIABILITY MOTOR-VEHICLE insurance income INSURANCE CONTRACTS

21%: growth in premium income from property and corporate clients liability insurance A serious impact on Ingosstrakh’s written premiums was the financial crisis which, in 2H 2008, brought a major slump in the number of cars sold. However a number of tariff initiatives improved competitiveness of base voluntary motor insurance products to retain insurance premium growth rates at a stable level.

The total proceeds from motor insurance amounted to RUB 25.6bn, including 4.4 RUB 20.2bn in hull insurance premiums, and RUB 5.1bn in compulsory motor 690 TPL insurance. Voluntary motor TPL insurance raised RUB 0.3bn. % The sales in 2008 were handled mainly through intermediaries, i.e. agents, brokers and banks. In 2008 the bank sales channel somewhat receded into the background in view of the banks ceding initiative to auto dealers. In addition, mln 21% in2008 the sales dynamics shifted towards regional markets. 690 Deliverables in major areas of business Open Joint Stock Insurance Annual Report Annual Report Open Joint Stock Insurance Company Ingosstrakh 2008 2008 Company Ingosstrakh

MOTOR HULL Payments in motor insurance grew faster than premium income, i.e. 34% vs. 27%, against the background of the Company’s determination to meet all of its commitments in full.

25.000 Total payments in motor insurance in 2008 reached RUB 14.6bn, or 59% of all 20.245 payments made by Ingosstrakh IJSC, including RUB 11.9bn in motor hull insurance, 20.000 RUB 2.7bn in compulsory motor TPL insurance, and RUB 0.1bn in voluntary motor 15.905 TPL insurance. 15.000 12.805

9.639 The largest payments in motor insurance are linked to thefts of premium brand 10.000 cars and to total loss accidents.

5.000 The loss ratio in motor insurance in 2008 was reported to be 75%, which still enabled the Company to retrieve positive financial results from this business seg- 0 ment. One of the positive factors was the lower accident rate in motor insurance in 2008 as compared with 2007.

The Company seriously focused on mitigating the risk of fraud in motor insurance. During the year, Ingosstrakh undertook a number of effective 24 COMPULSORY MOTOR TPL initiatives in this respect. 25

6.000

5.000

4.000

3.000 2.000 320,000 1.000 THE NUMBER OF VOLUNTARY

0 THIRD PARTY LIABILITY INSURANCE CONTRACTS

VOLUNTARY MOTOR TPL The major deliverables are represented by a project aimed at developing a Directory of Fraud Risks. Based on various fraud scenarios entered in the Directory, the Company developed a set of indicators that determines signs of fraud during acquisition, registration and investigation of losses. 300 The Company has developed a list of measures which it recommends for use during investigation or collection of information in the event of the 250 apprehension of fraud. 200 Besides, the Company focused on the identification of major loss-makers 150 among its clients in the upper segment of the insurance payment list. None 100 of the identified clients continue to be serviced by the Company.

Deliverables in major areas of business Deliverables in major areas of business Open Joint Stock Insurance Annual Report Annual Report Open Joint Stock Insurance Company Ingosstrakh 2008 2008 Company Ingosstrakh

Throughout 2008, the Company was an active participant in various competitions and tenders. For example, it was announced the winner of tenders for compulsory motor TPL insurance of vehicles for the Ministry Corporate of Emergency Situations, Russian Federal Investigation Committee, Russian Federal Arbitration Court, Registration Chamber, Social Insurance Fund, State property and Academic Bolshoi Theater, etc. It won tenders for motor hull insurance of the car fleet of the central motor depot of the Russian Federal Ministry of Defense and a number of large international companies operating in Russia, including liability insurance GTI, Cadbury, Wrigley and Danone.

In 2008, the Company focused on improving the quality of From the start of 2008, the Russian market for corporate its services. It launched a number of new products, as well as property and liability insurance continued to display a tendency introducing new options and additional services: towards a major slowdown in terms of growth rates compared to the previous years. • ‘Autoprofi’ – a federal level product that stipulates a special form of franchise for second and subsequent claims, and offers a discount on The lower growth rates were primarily caused by the fact that most insurance the risk of damage; companies were striving to capture as much of the market as they could through tariff reductions and dumping policy. For example, experts believe that the rates • ‘Homobile’ – a federal level ‘box’ product, i.e. a combination of motor + offered for Construction All Risks reduced by 3 to 4 times. Other factors which 26 property (building or apartment) insurance; 27 negatively affected the dynamics in this segment included the cheapening of reinsurance with Western insurance companies. • ‘Pragmatic’ – a product intended for residents of Moscow and the Moscow Region. It offers insurance against theft and damage risks, where By the end of the year, the tendency towards slower growth in this segment of insurance compensation under the risk of damage is made only in the event the insurance market was affected by the global financial crisis. The slump in of total loss of the insured vehicle; the growth rates was driven by lower industrial outputs and the downsizing of construction projects and volume of related services, as well as by the outflow • ‘Pravilny’ – a product intended for residents of the Far East Federal District of foreign investments from the country and the reduction of real personal and covering right-wheel cars. The product stipulates that claims are incomes. The lower scope of crediting operations triggered an avalanche in the cash-settled with a view to regional specifics; previously dynamic mortgage insurance sector.

• The Company upgraded its special motor insurance products for all cars As the deliverable of these negative tendencies, the corporate property and manufactured by GM, Jaguar, Land Rover, Volkswagen, and AUDI. The liability insurance segment in 2008 faced an absolute reduction in the size of products offer special conditions both in terms of tariffs and in terms of written premiums. the scope of services they encompass; However, such market challenges failed to prevent Ingosstrakh IJSC from main- • Ingosstrakh’s ‘Payment Upon Calculation in 48 Hours’ program was taining a tendency towards increasing premiums in all other areas of this seg- successfully implemented at the federal level; ment in the Company’s insurance portfolio through 2008. The size of written premiums in corporate property and liability insurance increased by 21% to • Optimization of loss adjuster services in Moscow and the Moscow Region: RUB 7.4bn. In 2008, the Company entered more than 48,000 contracts, or less time to process one request by the call center; almost 5000 contracts more than the prior year. The share of this segment in the corporate portfolio is still quite stable and is around 16%. • Higher rate of quick response (arrival of the loss adjuster within 90 minutes of the call). As to the structure of the segment as such, it underwent some changes, although minor ones. Traditionally, the largest share in the portfolio is retained by Property insurance against fire and allied perils (72%) followed by Engineering insurance (11%), with liability insurance (10%) and agricultural insurance (7%) at the bottom of the list.

The highest growth rates in 2008 were reported by the following segments: • RUB 32mln – fire outbreak on the premises of Kora TC shopping mall (Kemerovo); • Professional liability insurance: up 60% (aggregate premiums exceeding RUB 400mln); • RUB 25mln – explosion and fire outbreak on the premises of a compressor unit of LLC Tomskneftechim (Sibur Holding). • Insurance of leased objects: up by some 40% (aggregate premiums of almost RUB 130mln);

• Insurance of agricultural risks: up by more than 30% (aggregate premiums exceeding RUB 500mln); Voluntary Medical • Engineering insurance: up by more than 30% (aggregate premiums of almost RUB 800mln); insurance • Industrial property insurance: up by almost 20% (aggregate premiums of almost RUB 2.6bn). The major drivers in the voluntary medical insurance (VMI) The dramatic reduction in the scope of crediting operations in Q3 and Q4, market are the need for quality medical assistance and the tax 2008, resulted in the reduction of premiums in mortgage insurance by almost benefits insurants become eligible to upon insuring under a 28 RUB 60mln, or 10% vs. 2007. Many banks and institutions aiming to optimize 29 VMI policy. The demand is still by and large created by corpo- their costs were forced to let go of expensive insurance programs. Therefore, rate clients (98% of the VMI market is taken up by legal corpo- the negative impact of the financial crisis affected such areas as bank loan insurance, including package insurance of banks against crime (Bankers Blanket rate entities). Bond) and Directors and Officers liability insurance (D&O), where premiums were reduced by more than RUB 40mln (-14%). The Company’s premium in VMI in 2008 amounted to RUB 4.4bn, or 33% higher than in 2007. The number of insureds as at the end of 2008 exceeded In 2008, the Company developed and implemented new risk protection 610,000, which demonstrates an increase of 11% from the prior year, including assessment programs applicable to insurable property of its corporate clients, 19% growth in terms of the number of insureds based in Moscow. and introduced a new engineering survey practice. As the result of the new initiatives aimed at improving the level of underwriting, the loss ratio decreased The VMI growth rate in Ingosstrakh is much higher than the market average. from 33% in 2007 to 26% in 2008. In 2008 the Company’s share in the market achieved 5.9%, or 0.5 percentage points higher than in 2009. In general terms, Ingosstrakh is rated fourth in the VMI market (and second in the real market). The Company’s main The largest claims in property insurance paid in 2008 competitors are ROSNO, RESO Garantia, AlfaStrakhovanie, Capital Strakhovanie, were the following: Renaissance, Rosgosstrakh, and UralSib Insurance Group.

• RUB 584mln – explosion of a boiler at an alumina refinery business, interruption losses;

• RUB 572mln – damage to an offshore drilling platform;

• RUB 142mln – damage to a rake as the result of train collision; • RUB 121mln – fire outbreak in a synthetic gum production unit; RUB 4.4 BN • RUB 45mln – fire outbreak in the warehouse of an office VOLUNTARY HEALTH INSURANCE equipment distributor; INCOME • RUB 42mln – fire outbreak in the warehouse of LLC Proddostavka, a tobacco distributor;

The major drivers of the market share increase are the following: The strategic initiatives developed during the project are aimed at the modernization of the product range, sales channels, pricing, contract administra- • Client loyalty improvement through the implementation of a service quality tion, loss adjustment practices and IT. Their implementation is expected in improvement program. Contract renegotiation ratio maintained at the 2009-2011. level of 75%; The total payments made in 2008 under voluntary medical insurance contracts • Inflow of new clients and efficient pricing policy. The Company’s new large amounted to RUB 3.4bn, or up 38% from 2007. The total number of insurance clients are RussNeft Oil Company and Wrigley LLC. claims was 16,500.

In 2008, the Company pursued its effort to re-channel clients to the Company’s own Moscow-based chain of ‘Bud Zdorov' outpatient clinics. Currently, the clinics service more than 72,000 clients, or 60% up from the prior year. Insurance of aviation risks

30 During the previous year the situation in the Russian aviation 31 610,000 insurance market continued to remain challenging. The THE NUMBER OF VOLUNTARY tendency among air transportation companies towards HEALTH INSURANCE consolidation and globalization resulted in further reduction CONTRACTS in the number of market players to fewer than 150 companies. The rise in the price of jet fuel worsened by the after effects of the global financial crisis resulted in a downturn in the scope of air transportation.

In order to improve efficiency in VMI and to optimize perfor- Against this background, the ageing of the aircraft remains an acute issue. Many mance in the key areas, the Company initiated the reengineer- aviation companies have tended to withdraw Russian aircraft from their fleets. ing of its business processes in coordination with consultants The capacity of Russian aviation plants is still insufficient to meet the needs of from Accenture Company. The reengineering initiative consist- Russian air transporters, and a significant portion of aviation companies choose to renew their fleets with aircraft made by Western manufacturers ranging ed of the following elements: between 10 and 15 years of age.

• development of a number of initiatives and prospective business The Russian insurance market volume stabilized in 2008. However, competition processes and subsequent assessment of economic efficiency of implemen- between the market participants is still acute, and in many cases contracts were tation thereof; renewed only subject to tariff reduction by 5 to 10%.

• development of layouts and guidelines (re: prospective business processes); Despite the above negative trends, in 2008 Ingosstrakh IJSC managed to retain leadership in the Russian aviation insurance market. As the locomotive of the • development of recommendations (re: modernization of the corporate Russian national market, Ingosstrakh collects around 25% of the aggregate IT systems); premium in the market. Ingosstrakh’s coverage is still the most efficient, reliable and fullest, which enables it to retain its position as a large player in the reinsur- • development of a prospective organizational structure of the medical ance market. In 2008 the accrued premium amounted to almost RUB 1.3bn, insurance division. including RUB 0.8bn in direct insurance and RUB 0.5bn in incoming reinsurance.

In 2008 Ingosstrakh IJSC continued working with major airlines, including S7, Vim Avia, and KD Avia. The total number of aviation insurance contracts exceeds 600.

Ingosstrakh IJSC pursued developing cooperation with the CIS insurers of (RSCC). Ingosstrakh IJSC was the co-insurer of the dual launch of Express-AM44 Ukraine, Kazakhstan, Belarus, Uzbekistan and Moldavia. The greatest achieve- and Express-MD1 spacecraft, and of an in-orbit fleet of spacecraft, including ments were made in Ukraine and Kazakhstan resulting in the increase of the Express-AM1, Express-AM2, Express-AM3, Express-AM22, and Express-AM33. reinsurance portfolio in these countries. The list of other major clients includes IOSC Intersputnik, Strategic Rocket Forces of Russia, Military Space Forces, MacDonald Dettwiler and Associates Ltd, and Total payments in 2008 increased to RUB 690mln, including RUB 535mln in liability Dalminer Finance S.A. (Luxembourg). insurance and RUB 155mln in aircraft hull insurance. In 2008, Ingosstrakh IJSC participated in an open tender arranged by Strategic The major insured events are represented by the following: Rocket Forces of Russia for TPL insurance during the launch of intercontinental ballistic missiles and was announced the winning bidder for one of the lots. The • liability to passengers as the result of the crash of an Airbus A310 in Irkutsk, coverage provided by Ingosstrakh exceeded RUB 400mln. a Boeing 737 in Nigeria and an Airbus A310 in Sudan; Also notable is Ingosstrakh’s participation in the launch and in-orbit operation • engine damage to a Boeing 737; insurance program for 5 RapidEye satellites, where the Company’s share was EUR 2.5mln. • engine damage to a TU-154; In 2008, Ingosstrakh IJSC provided insurance coverage to the property interests • damage as the result of an emergency landing of an MI-8; of French Thales Alenia Space France and Indonesian PT Indosat Tbk. for the launch and in-orbit operation of Palapa D. Ingosstrakh IJSC’s liability was around 32 • damage as the result of the roll off of an Airbus A320; USD 8mln. 33 • damage as the result of a tire explosion during the take-off The year 2008 was notable for Ingosstrakh IJSC because of the surge in the of a Fokker F-28, etc. scope of losses as the result of the large RUB 1bn claim in connection with the partial loss of the Express-AM2 spacecraft.

Insurance Cargo of space risks insurance

In 2008, the space risks insurance market demonstrated a stronger tendency towards tougher insurance coverage require- In 2008, the Company continued to develop business within ments as apply to the launch of spacecraft and operation of the cargo insurance sector: insurance of goods delivered within them while on orbit. Due to the claimed losses following the the context of overseas trade contracts, inland transportation, damage to Proton-M, a launch vehicle with an AMС-14 space- fine arts and exhibition cargo insurance. During the reporting craft on board in March 2008 and the failure of KazSat-1 and period over 31,000 cargo insurance contracts were concluded, Express-AM2, the market felt a lack of capacity resulting in sub- which is 12% more than in 2007. The gross written premium sequent appreciation of reinsurance coverage. amounted to RUB 906mln.

Ingosstrakh IJSC remains the ultimate leader in the Russian space insurance The Company was focused mainly on the analysis of Russia’s foreign trade market. It continues to retain and cement its reputation in the international turnover in respect of either the goods’ structure (oil, vehicles, furniture, met- market as well. In 2008, the Company was actively involved in the insurance and als, fertilizers, grain, electronic and household goods) or bilateral relations reinsurance of 65 space vehicles, including liability insurance of European space with far-away countries and the CIS. In 2008, the Company concluded con- manufacturers. The actual volume of annual written premiums amounted to tracts for insurance of supplies of aviation spare parts to India, Egypt, China, around RUB 850mln. equipment and construction technics from Japan, vehicles from Europe and China, gas distribution equipment to Saudi Arabia, pipes from China, rutile The major achievement of Ingosstrakh IJSC in the space insurance segment sand to India; sports equipment and clothes from Europe, the USA, in 2008 was its victory in the open tender for the in-orbit operation of the and South-East Asia. satellite fleet of its key client, Russian Satellite Communications Company

Ingosstrakh developed a unique insurance program for Belomortrans Compa- tation of medicines performed by Protek. The Company insured, via Forlog, ny upon the insurance of sea transportation of large-sized energy equipment the cargoes transported under the TB and AIDS Prevention, Diagnostics and transported from Sweden. Besides that, as the result of conducted activity, Treatment Program. Moreover, Ingosstrakh developed a program providing the Company prolonged insurance contracts with the growth of premium coverage of medical equipment supplies from Moscow to Russia’s regions via income with the largest Russian importers and exporters of the following the Russian Red Cross. goods: coal (KRUTRADE); raw sugar (TK Sakhar); non-ferrous metals (G.S.G. Metal); and crude oil (KazMunaiGaz). The Company was generally active in attracting large clients. Such companies accounted for more than 70% of the total premium in 2008, which exceeds In 2008, the Company managed to substantially increase the share of con- the previous year's indicator by 5%. At the same time, Ingosstrakh actively tracts for insurance of domestic transportation. This increase was caused ei- worked on developing relations with current clients and attracting small ther by the development of the Russian economy in general or by the growth and medium size perspective partners. This allowed the Company to form a of its branches, i.e. trade, construction and transport. highly-diversified insurance portfolio.

A number of large companies (M.Video Management, New Tobacco Com- Together with its affiliates, branches and foreign representative offices, pany, Megapolis) that are expanding into the regions placed the insurance Ingosstrakh IJSC concentrated its effort on attracting and retaining new clients of all their cargo transportation within Russia with Ingosstrakh. An increasing in Russia, the CIS and other countries. In 2008, the premium collected via number of forwarding companies and Russian carriers offer to their clients affiliates increased by 16.5% and amounted to over RUB 208mln. Ingosstrakh's Ingosstrakh cargo insurance policies. The trend to world road transportation position in the field of cargo insurance in the regions of Russia was significantly insurance growth which had manifested itself earlier remained and demon- strengthened. strated a sustainable increase until the end of the last year. 34 In 2008, the Company continued fruitful cooperation with Russian and 35 During the reporting period Ingosstrakh maintained leadership in the Russian international brokers. The most notable relations were built up with Marsh, market in fine arts and exhibition cargo insurance. Most exhibitions organized Willis CIS, Tiborg Ltd, Atom Insurance Broker, and Ingosur, which enabled by Russian museums abroad were insured with Ingosstrakh. Among the major Ingosstrakh to prolong insurance of a number of large projects.

As for the settlement of major losses, 2008, as well as the previous year, was comparatively favorable. Loss ratio totaled about 28.7% only.

The most outstanding indemnity payments were as follows: RUB MLN 906 • RUB 12.8mln – theft of cargo (cigarettes) during road transportation CARGO INSURANCE from St. Petersburg to Moscow; INCOME • RUB 7.8mln – total loss of medical equipment as the result of fire damage to the carrying conveyance during parking in Poland;

• RUB 5.4mln – spoilage of cargo (rice) during sea transportation by the ‘Masan’ vessel from Thailand to Russia; projects during the reporting period to be noted are the following: ‘Kanova and Tsar Sculpture’ (Italy), ‘Fragile’ (Germany), ‘… the Beauty saved by Borovik- • RUB 4.8mln – theft of the whole cargo (household equipment) during ovsky’ (Russia), ‘Caspar, David Friedrich…’ (Netherlands). The Company coop- road transportation; erates with such clients as the State Hermitage, State Museum and Exhibition Center ROSIZO, ‘Moscow Kremlin’ open-air museum, State • RUB 3.6mln – theft of cargo (clothes) during railway transportation Tretyakov Gallery, and the State Russian Museum. from China to Russia.

In 2008, Ingosstrakh continued to cooperate with state organs of Russian Federation. In particular, a program of the insurance of office equipment supply within the State Order for the needs of the Social Insurance Fund, Russian Railways, Ministry of Domestic Affairs, Ministry of Defense and Moscow- Sevastopol Foundation was realized. Within the framework of State Subsi- dized Aid Program for the Russian residents, Ingosstrakh insured the transpor-

• USD 3.5mln – the total loss of the ‘Neftegaz 67’ as the result of collision;

Marine hull, • USD 2.7mln – the total loss of the ‘Rezzak’; machinery • USD 2.0mln – the total loss of the ‘Captain Uskov’ (went missing). and P&I insurance Transport operators An overabundance of insurance services in marine insurance during recent years has resulted in sharper competition in com- insurance bination with a slump in tariffs and the growing disposition of insurers to renew insurance contracts through tendering proce- dures. Unsophisticated tariffication and lack of insurance cover- Among numerous insurance market players providing services age have become the accents in today’s market. to transport operators Ingosstrakh IJSC is one of the major players accounting for about 40% share of the transport Despite acute competition, Ingosstrakh managed in 2008 to retain leadership in operators’ liability insurance market. 36 most areas, specifically in hull insurance, ship-owners’ liability insurance and in- 37 surance of yachts. The Company maintains significant positions in the insurance of vessels under construction, where captive companies play an important role. Despite the downturn in the volume of transportation in Q4 2008 caused by financial crisis, the annual volume of cargo and passenger transportation by all The level of quality in settling insurance claims as well as high ship-owners’ li- means of transport increased vs. 2007. ability insurance limits of up to USD 500mln enabled the Company to cement its position and boost written premiums. The size of sales in 2008 exceeded The increase in the number of transport and logistic companies and the RUB 1.6bn, including RUB 1bn in hull insurance and RUB 0.6bn in ship-owners’ number of vehicles employed, as well as improvement of their quality ensure liability insurance. greater demand for the respective insurance services. Awareness of liability insurance as one of important factors of financial stability of transport and In order to improve the overall revenue position of this business segment, the logistic companies allowed to increase the share of medium-sized companies in Company channeled its key effort into selecting new risks and sanitizing its Ingosstrakh’s IJSC portfolio. portfolio through barring loss-making or unreliable clients. This effort resulted in a significant reduction in Ingosstrakh’s share in marine vessel insurance in the About 1300 insurance and reinsurance contracts were signed in 2008, the gross Turkish and Greek markets. In relation to other clients, the Company pursues a written premium amounted to RUB 760mln, exceeding the 2007 level by 24%, stringent tariff policy that enables the Company to achieve a major reduction including: about RUB 600mln in road carriers and freight forwarders liability in losses. insurance, more than RUB 122mln in rolling stock insurance, and almost RUB 40mln in transport terminal operators liability insurance. In 2008, the Company continued to create the most favorable conditions for its existing clients against a background of actively engaging new ones. The The year 2008 saw a rather dynamic development of liability largest clients in the Company’s portfolio in 2008 were OJSC Volga Navigation insurance of road and railway carriers, as well as freight Company, Kaalbye Shipping International Ltd, Commercial Fleet of Donbass forwarding and logistic companies triggered by the following Ltd, Lithuanian Shipping Company, CJSC Akros Fishing Company, Aquaship Ltd., factors: Latvian Shipping Company, Ocean Agencies Ltd., and Fedcomshipping Ltd.

Last year was extremely unfavorable for the Company in terms of claims and • The Russia’s foreign trade turnover growth in Q1-Q3 2008; the payment of a large number of losses. • Requirements set by different state and private companies for the insurance The largest losses encompass the following: cover of their partners;

• USD 14.0mln – the stranding of the ‘Jane’ near the Japanese coast near • Favorable insurance terms provided by Ingosstrakh IJSC. the port of Shiogama;

• USD 3.5mln – fire outbreak onboard the ‘Mikhail Kalinin’;

At the end of 2008 the Company launched a special insurance program for or- • RUB 4.3mln – freight forwarder liability arising from theft of cargo (TV sets); ganizations operating in the field of customs. As a part of this program the first 17 insurance contracts were signed in 2008. • RUB 3.7mln – damage to a locomotive as a result of fire; In 2008 the Company managed to retain the stability of its client portfolio in RUB 3.1mln – damage to a transported harvester combine transport operators insurance, which consisted of transport companies carry- • ‘John Deere-9640’ as a result of traffic accident; ing goods and passengers by road and railway, freight forwarding and logistic companies, owners and lessee of warehouses, containers, stevedoring companies. The dynamics of this portfolio over the recent years demonstrated the • RUB 2.9mln – damage to a tank with liquid oxygen as a result high level of clients’ loyalty to the Company. of traffic accident;

Today the list of Ingosstrakh’s IJSC clients includes the largest Russian transport • RUB 2.8mln – freight forwarder liability arising from theft of cargo operators, such as GEMA Group of companies, Sunflower Corporation, ICT-Inter- (household appliances). nationale Transport GmbH, STS Logistics Holding, Russian Railways (RZD), New Transportation Company, TransGroup AS, Universal Transgroup, and Transgarant Firm. Ingosstrakh IJSC also maintains active cooperation with the leasing companies operating in the sphere of railway transportation, including RG Leasing, 38 Hansa Leasing, Leasing Company of the International Moscow Bank. Travel insurance 39 In 2008 the travel insurance market continued to pursue its development path. According to the Russian Statistics Com- mittee, the ‘pre-crisis’ tourist flow out of Russia demonstrated growth. In the first nine months of the year, the number of 40% Russian tourists travelling abroad increased by 24.3%. THE COMPANY'S MARKET SHARE However, from October 2008 the tendency was towards a lower rate of IN FREIGHT FORWARDERS LIABILITY foriegn travel. The leading destinations in 2008 were Turkey, Egypt, Finland, INSURANCE Italy, and Spain. The tourist outflow from Russia was noted to decrease in two destinations: Poland and Estonia. The growth in the number of clients in this segment was leveled out by dumping efforts and tough competition among insurers for large travel agencies which sell more than 70% of travel insurance policies. This resulted in a reduction by 15% in some of the tour operators. The average market growth dynamics indicator for 2008 constituted no more In 2008, Ingosstrakh IJSC continued its cooperation with the ten associations of than 15%. international road carriers from Russia, Latvia, Lithuania, Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Moldova and Uzbekistan in TIR insurance and In 2008, Ingosstrakh IJSC managed to collect more than RUB 730mln in written provision of various insurance services to transport companies – members of premiums, or 30% more than in 2007. The number of insured tourists grew by these associations. 40% vs. 2007. In 2008 the Company maintained leadership in the travel insurance market with the share of about 40%. Despite tough competition the tariffs in all types of transport operators’ insurance are maintained at the level allowing to ensure high-quality services in The year 2008 was noted by the Company for the successful retention of combination with business profitability. the leading tour operators that determine the trends in the market of tourist services, including Natalie Tours, Lanta-tour Voyage, Mostravel, Biblio-Globus, Roza Vetrov, Capital Tour and others. At the same time, the Company estab- In 2008 the Company’s clients claimed 531 losses; insurance lished first contacts with more than 70 travel agencies and corporate clients indemnity was paid for 397 claims in the total amount of who insure their employees during travel outside Russia. RUB 110mln. The loss ratio with transport operators insurance constituted 33%. The largest losses were paid for:

An important event in 2008 was the launch of the following new insurance During the year Ingosstrakh settled a number of products; Platinum, Platinum Winter, Optimal, and Individual. The Company large-scale losses: optimized the issuance of electronic policies via travel agencies. • Losses from a fire outbreak in a computer warehouse in Kiev, Ukraine The largest paid losses were made in relation to the insurance of emergency (Ingosstrakh’s share exceeded USD 16mln); medical costs that arose during foriegn travel. The list of such losses includes 80 claims with the size of compensation exceeding RUB 250,000 per claim. • The crash of a Boeing 737 in Kyrgyzstan (Ingosstrakh’s share: USD 75,000) and an AN-12 in Armenia (USD 143,000);

• Fire outbreak in a shopping center in Odessa, Ukraine; Ingosstrakh’s share in the payment exceeded USD 0.2 mln;

Incoming • RUB 27mln – for drought-hit crops reported by LLC Maksimka reinsurance in Poltava, Ukraine.

Incoming reinsurance remains one of the attractive segments 40 for professional players in the Russian insurance and reinsur- 41 ance market. The main players in the Russian reinsurance market are represented by insurance and reinsurance companies in Russia, local and international brokers, international insurance RUB 4.2 BN and reinsurance companies operating in continental Europe THE VOLUME OF INCOMING and in the London market and companies incorporated on the REINSURANCE Bermuda Islands.

At the end of 2008, the Russian Federation had 26 registered reinsurance companies and 189 insurance companies licensed to handle incoming reinsurance. The aggregate written reinsurance premium in 2008 amounted to RUB 41bn, or 21.2% less than in 2007. Business incoming from Ingosstrakh’s foreign affiliates; reinsurance markets in foreign countries The market share attributable to Ingosstrakh IJSC in the aggregate volume of incoming reinsurance in 2008 amounted to 10.2%, or RUB 4.2bn, including In 2008, the incoming business from foreign countries accounted for 23.5% of RUB 1.6bn in incoming obligatory reinsurance. written premium in incoming reinsurance, or RUB 986mln.

Ingosstrakh’s major activities in incoming obligatory reinsurance are represented by the following: This premium distributes as follows:

Reinsurance in Russia, CIS countries and the Baltic States • 70% – INGO Group of companies (primarily by Sovag, Germany, and IngoNord, Finland); In 2008, obligatory reinsurance in the markets of Russia, CIS countries and the Baltic States continued to hold major positions in the reinsurance business of • 30% – international market players (primarily South Korean, Chinese, Ingosstrakh IJSC. The major regions in 2008 other than Russia in terms of the Indian, Eastern European and the Far East). geographical context were Ukraine and Kazakhstan. The Company accessed new classes of reinsurance, particularly title and agricultural reinsurance. These business lines brought RUB 15mln in revenues. The aggregate volume of In 2008, a major upturn in sales was reported by the Chinese market which written premiums in these markets amounted to RUB 326mln, or 10% above grew by 250% (+RUB 65mln) in terms of insurance of freight transportation, the level reported in 2007. construction and assembling risks insurance. This upturn was primarily driven by the Olympic Games in Beijing and the subsequent boom in the Chinese

insurance market. Egypt reported 40% higher sales than in 2007 (+RUB 23mln). Reliable reinsurance coverage makes a major contribution to successful develop- Higher premiums (+30%) were reported by space risks that were traditionally ment of business within INGO Group. The group’s affiliates operating in Ukraine, reinsured by Ingosstrakh IJSC under reinsurance contracts from its partners in Uzbekistan, Armenia and other countries get an opportunity to improve the Western Europe. appeal of their retail insurance products through the reinsurance capacity offered by Ingosstrakh IJSC. They can successfully participate in various competitions and The Far East and North Africa remain Ingosstrakh’s priority areas in terms of tenders arranged by large corporations willing to obtain high-quality insurance reinsurance. In 2008, the written premiums reported by these regions increased services. by 37% over 2007.

The largest clients were PICC (China), Korean Reinsurance Company (Republic of Korea), and General Insurance Corporation (India).

In 2008, Ingosstrakh established contacts with companies from the United Arab Life insurance Emirates and Dominican Republic and Cuba. The year of 2008 became the year of further business develop- The list of large losses settled in 2008 includes the following: ment of Ingosstrakh Life both in terms of geographic expansion • RUB 15.9mln – the loss of Rascom, a communication satellite; Primary and vertical growth through productivity improvement. insurer: SCOR Global P&C (France); 42 The total premium of the Company in all business lines (including NPF Ingoss- 43 trakh Pension Fund) amounted to RUB 813mln, or 30% higher than in 2007, – Surat flood in India in August 2008. Primary insurer: • RUB 7.5mln while the share of life insurance (pension insurance included) grew by 71%. The General Insurance Corporation (India); number of clients insured by the Company in all types of life insurance reached

800,000. The Company settled more than RUB 174mln insurance claims. • RUB 6mln – liability of Santa Barbara Airlines as the result of an air crash; Primary insurer: General Insurance Corporation (India). The major projects in 2008 and their results are as follows: Incoming reinsurance of dominant retail insurance operations • Development of a captive agency: in 2008 the agency expanded from 400 to 600 people. The number of cities where Ingosstrakh Life now operates reached 20. The company opened offices in Novosibirsk, Chelyabinsk, In general, 2008 was marked by a further economic upturn and the evolution of Bryansk and Sochi. The total premium collected by the agency in 2008 consumer lending which contributed to the growth in demand for insurance and increased almost threefold as compared with 2007, which represents 25% reinsurance protection of travel risks, accident and sickness insurance, and motor of total premium collected by the Company in 2008. hull insurance. • Development of corporate risk and pension insurance: focus on active sales, The size of written reinsurance premium amounted to RUB 125mln, including 58% retention and expansion of coverage for the current client portfolio. The accounted for by travel risks, 33% by motor hull risks and about 9% of accident, total premium collected in the corporate segment in 2008 increased by property and liability risks. The annualized premiums grew by 35%. 14% as compared with 2007. The Company’s key clients are among largest Russian and international companies, including more than 20 clients with the Despite the outbreak of the financial crisis, more than 50 companies in Russia, CIS, number of insurants exceeding 1000, and 13 clients where the the Baltic region and Western Europe renewed obligatory reinsurance contracts number of insurants exceeds 3000. Such companies as Ernst & Young for popular reinsurance programs offered by Ingosstrakh IJSC. CIS, KPMG, Microsoft, Intel, British American Tobacco, Deloitte & Touche, Shell Corporation, Johnson & Johnson, Procter and Gamble, Coca Cola, In 2008, the Company paid more than RUB 39mln in compensations. The bulk Boeing, GlaxoSmithKline, and Pfizer entrusted life and health insurance of payments related to motor hull and accident insurance risks. Last year was not coverage to Ingosstrakh Life, as well as many others. In 2008 the client list marked by any large losses, however there were losses claimed under insurance of Ingosstrakh Life included such new clients as L’Oreal, ING Bank, Heineken, programs for borrowers and sportsmen. General Motors, Hilti etc.

repair and finishing materials sector. As before, the Company did not accept for • Development of cross-sales: insurance the risks related to articles of jewelry, clothing or luxury items.

Promotion of accident and life insurance through the branches of OJSIC In 2008, Ingosstrakh IJSC concentrated its effort on developing relations with Ingosstrakh and sales on Ingosstrakh’s client databases; Russian and international leaders in specific sectors of the economy. This strategy was supported and recognized by international reinsurers who agreed Individual accident and life insurance sales on Ingosstrakh Life corporate to complement Ingosstrakh’s reinsurance program with additional elements of client databases. anti-crisis coverage.

After gaining pace in the second half of 2008, the global financial crisis In 2008, Ingosstrakh Life has developed packaged products in risk and pension exposed the dependence of national economies upon each other and on the corporate insurance for companies with a headcount below 100 employees. The economic probity of the world’s key currency issuers. The different degree of products were promoted via retail distribution channels. Besides, the Company ‘vulnerability and exposure’ of various countries and regions was also exposed. offered a supplementary savings program that expands the opportunities and The need to diversify the trade credit insurance portfolio by country to ensure flexibility of classic life insurance. sustainable long-term balance stimulated further integration and consolidation of players in the international credit insurance market. In 2008, the Company continued strategic cooperation and risk exchange with credit insurers in Belgium and Italy. Ingosstrakh IJSC embarked on a detailed investigation into the options of creating an international credit insurance partnership in Russia 44 Credit risks with special companies from Western Europe. 45 insurance Regional network During the reporting year, Ingosstrakh remained an active insurer of trade credits with a focus on the intensive improvement of portfolio quality. The Company pursued its com- Branches mitment to the insurance of trade operations in the priority segments of the Russian economy, with only but partial adjust- In 2008, the regional network of Ingosstrakh IJSC integrated 9 regional centers, 83 branches and 154 additional offices. The company’s outlets operate ments in view of the finance crisis. in all parts of the Russian Federation, operating in 234 cities and residential settlements. Ingosstrakh had primary focus on the distribution of pharmaceutical products, electronics and basic foodstuffs, including meat and dairy products. At the end of 2008 the agency network of the Company’s regional divisions Ingosstrakh IJSC was an active supporter in terms of credit insurance of supplies united more than 11,000 agents. The quantity of agents more than doubled in of feed compounds and nutrient mixtures to Russian cattle and fish breeders, 2008. thus contributing to the development of Russia’s domestic food production industry. In 2008 the volume of written premiums reported by Ingosstrakh’s regional divi- During the financial crisis the Company banned and suspended insurance of sions amounted to RUB 12.8bn, or 30% higher than in 2007. credit risks related to housing and commercial development projects and road motor transportation. It abstained from expanding its risk portfolio in the The share of regions in the aggregate accruals of the Company in 2008 amounts to 28%, or almost 3 percentage points higher than in 2007. There- fore, there is a clear tendency towards ongoing expansion of the share of the regional network in the Company’s insurance portfolio.

The major portion of the regional insurance portfolio was accounted for by In 2008 the Company launched ‘Homobile’, a package insurance product for retail insurance products. Their share in overall sales in 2008 was almost 70%, all-in-one protection of motor, real estate and TPL risks. and written premiums were RUB 8.9bn, or +40% vs. 2007. Another product launched in 2008 was ’Autoprofi’, a motor hull insurance In the retail insurance portfolio of the regional network the largest weight was product intended for experienced drivers. attributed to voluntary motor insurance (hull insurance) with a share of 68% and RUB 6.0bn in terms of premiums, which is 50% higher than in 2007. Throughout the whole of 2008 the regional network of Ingosstrakh IJSC invested a major effort in the reduction of the size of accounts receivable The next position in the regional portfolio is compulsory motor TPL insurance. from insurants and contractors. It also worked on the optimization of the There were no major changes as compared with 2007; the share remained at terms of coordination with motor dealers through management of cash the level of around 27%. The volume of accrued insurance premiums in compul- inflows and outflows. sory motor TPL insurance was reported to amount to RUB 2.4bn.

The leader in terms of accrued insurance premiums was the Siberian Regional Center of Ingosstrakh IJSC. The branches it coordinates accrued almost 46 RUB 3bn in 2008. 47 The leader in terms of absolute growth was the Urals Regional Center, which reported premiums 68% higher than in 2007. 70% SHARE OF RETAIL INSURANCE IN THE OVERALL SALES PATTERN

RUB 12.8 BN PREMIUM INCOME OF THE COMPANY'S It is worth noting that despite the impressive expansion of Ingosstrakh’s retail REGIONAL BRANCHES insurance portfolio, the regional network managed to sustain losses at an acceptable level, i.e. 84% in motor hull insurance, and 77% in compulsory motor TPL insurance.

Foreign network In 2008, Ingosstrakh IJSC branches undertook a number of initiatives aimed at improving relations with commercial partner banks, which brought a positive deliverable in the form of higher sales and optimization of the pricing condi- In 2008, INGO Group continued to pursue its continuous geographic expansion tions of such relations. For example, the regional divisions of Ingosstrakh IJSC strategy. The list of foreign offices was extended through integration of collected RUB 2.1bn in insurance premium via the bank sales channel. The an Uzbek affiliate, INGO Uzbekistan, which rapidly gained momentum and largest portion of sales is attributed to hull insurance (RUB 1.8bn). became the third largest player with 11% of the market. In 2008, Ingosstrakh’s foreign affiliates demonstrated stable growth. Despite In order to boost the sales of motor insurance products in the Far East Federal the effects of the financial crisis which became visible in the second half of the District, the company launched a new insurance product, ‘Pravilny’ (Right year, all major performance parameters of INGO Group foreign companies One) targeted at right-hand drive cars imported from Japan. This product manifested their adequate adaptation to the changing environment against the stipulates faster payout of insurance compensation (within 48 hours) based on background of a successful development of the business. the loss estimation by an independent expert.

The inflow of gross written premiums reported by the foreign companies The key corporate events in the life of Ingosstrakh’s foreign affiliates in 2008 amounted to RUB 7bn (9% above the previous year). The leaders among the were authorized capital increase steps in INGO Armenia (increase by Group’s companies in terms of gross premium increase vs. 2007 were BelIn- RUB 13mln), INGO Ukraine (+RUB 330mln), and BelIngostrakh (+RUB 16mln). gostrakh (+74%) and INGO Armenia (+41%). Foreign representative offices The platform of growth reported by CIJSC BelIngostrakh was formed by property-related and liability risks of corporate clients. The Company activated operation in all regions. The high growth reported by INGO Armenia is largely Ingosstrakh’s foreign representative offices operate in Azerbaijan, India, driven by the company’s ultimate leadership in the medical insurance and ac- Kazakhstan, China, Uzbekistan, and Ukraine. The aggregate gross premiums cident insurance segment. raised in these markets amounted to around RUB 500mln, or 6% more than in 2007. JSIC ‘INGO Ukraine’ made notable progress. Its written premiums exceeded RUB 2.5 bn, mainly due to the active expansion of the regional network which The largest contribution was made by the RepOffice in China (RUB 154mln, or 31% higher than in 2007). The representative office in Ukraine managed to almost double its premium to RUB 112mln in 2008. The premiums in Azerbaijan and Uzbekistan demonstrated positive dynamics and rose RUB 34.8mln (+21.4%) and RUB 29.8mln (+8.4%), respectively.

The volume of risks reinsured by Ingosstrakh IJSC in coordination with the RUB BN Indian Representative Office amounted to RUB 52.2mln, or RUB 4.97mln down 48 7 from the prerious year. This reduction is attributable to Ingosstrakh’s successful 49 GROSS INCOME OF FOREIGN COMPANIES sanitation of the insurance portfolio and other measures aimed at reducing BELONGING TO INGO GROUP losses among the risks undertaken for reinsurance from the Indian market. The most significant reduction in written premiums in 2008 was reported by the Representative Office in Kazakhstan, where premiums went down RUB 104.4mln from RUB 191.42mln in 2007 in the light of the country’s exposure to the economic crisis. grew 50% in 2008. The insurer demonstrated traditionally strong positions in voluntary medical insurance, motor hull insurance and insurance against fire risks.

Kyrgyzinstrakh, Ingosstrakh’s affiliate in the Kyrgyz market, confirmed its ultimate leadership. Its written premiums went up by 38% during the year. Reinsurance

Garant VAG continued its steady development as an insurer dedicated to the insurance of credit and political risks covering developing countries. The posi- A priority area for Ingosstrakh IJSC is the protection of its tive development trends manifested themselves in a 20% increase in written portfolio. Such protection efforts basically consist of two major premium and more than RUB 20mln of generated profit. components, namely marine and aviation reinsurance and non- marine reinsurance programs. The key terms of Ingosstrakh’s The highest results were traditionally reported by Sovag VAG in the amount of RUB 3.2bn. reinsurance contracts in 2008 are summarized in the table below.

Ingosstrakh IJSC’s policy in relation to its foreign affiliates consists in providing maximum support in order to drive them to leadership positions in relevant national markets. This support is manifested through sustaining their financial situation by increasing their equity up to the level corresponding to their goals. Ingosstrakh IJSC also supports its companies in the development and implementation of progressive investment and reinsurance policy.

PARAMETERS OF MAJOR OUTWARD Cargo reinsurance Scope of coverage: Excess of loss, REINSURANCE CONTRACTS IN all cargo insurance risks, priority: USD 2.5mln including transportation of exhibits. Limit: USD 130mln INGOSSTRAKH IJSC Reinsurance of ship owners liability Scope of coverage: Excess of loss, Description Highlights liability risks, including liability priority: USD 3mln to crew members, third parties, Limit: USD 500mln per vessel/event Non-marine risks liability for cargo, damage of mobile Reinsurance of property risks and stationary objects, sea pollution, collision with other vessels, liquidation The contract provides wide coverage, Excess of loss, of shipwreck debris, stowaways, inter alia, of fire and related risks, priority: USD 3mln, fines and penalties, etc. business interruptions, energy supply Limit USD 225mln risks, control of a well, Aviation risks insurance against all risks. Reinsurance of aviation hull risks Reinsurance of technology risks Two types of reinsurance contracts: 1) Pro-rata agreement with USD 1) Pro-rata reinsurance of aviation 10mln limit with 30% The scope of coverage includes Excess of loss, risks on the basis of first of own retention 50 construction and assembling risks, priority: EUR 2mln, loss policy. 2) Reinsurance agreement on the 51 construction vehicles and equipment, Limit EUR 75mln 2) Reinsurance on the basis basis of risk excess with breakdown of machinery and equipment, of risk excess. the limit of USD 30mln above breakdown of electronic equipment, The contract covers risk of loss USD 10mln Retention: 10% loss of profit resulting from the breakdown or damage of an aircraft or of machinery and equipment, etc. components thereof. No Besides, the limit of EUR 20mln covers geographic restrictions apply. ALOP and CECR risks (roads, bridges, etc).

Reinsurance of civil liability risks Reinsurance of aviation liability risks on the basis of excess of loss The scope of coverage includes risks Excess of loss, of civil liability to third parties (including priority: USD 1mln, Reinsurance of civil liability risks Excess of loss, general civil liability and liability of Limit: USD 20mln per policy, in ownership and operation of priority: EUR/USD 3mln commodity producers, liability of or USD 15mln per each aircraft, airports and damage Limit: EUR/USD 75mln employers and compensations to professional liability insurance through lack of aviation goods, per each accident employees) and professional liability. policy works and services. Geographic limitations: all world, except Reinsurance of agricultural risks passenger flights to the US, Canada and their subject territories. Coverage of crop-related risks. Pro-rata agreement with EUR 5mln limit and 50% retention Reinsurance of aviation liability risks on the basis Reinsurance of motor hull risks arising as the result of catastrophe of excess of loss Scope of coverage: Excess of loss, Reinsurance of civil liability risks Excess of loss, all motor hull insurance policies. priority: USD 2.4mln in operation of aircraft with liability priority: USD 75mln Limit: USD 25mln limits in excess of USD 75mln Limit: USD 575mln Geographic limitations: all world, per each accident/aircraft Marine risks except passenger flights to the US, Retention: 0% Canada and their subject territories. Reinsurance of marine hull risks

Scope of coverage: all hull risks, Excess of loss, including ships under construction, drilling priority: USD 2.5mln platforms during transportation to the Limit: USD 30mln drilling area. Except river boats of more than 35 years of age.

• Major reduction in the degree of risk exposure of the short-term Investments investment portfolio; • Increase of the share of fixed income instruments and high credit quality (notes and bonds of banks with equity participation of the state); In its investments in 2008, Ingosstrakh IJSC traditionally exer- cised a conservative approach to channeling its equity funds • Hedging of Company’s ruble capital and reserves currency risk; and insurance reserves with an aim to minimize risks and ensure • Day-to-day monitoring of investment limits on banks and investment reliability and return on investments at the planned level. The instruments. key objective in short-term investments is to form a pool of high-liquidity assets sufficient to cover the accepted liabilities and to be capable of producing the necessary rate of return.

When investing in bank instruments, the Company engages a two-level system of limits in order to enhance the degree of reliability when investing and minimize the inherent credit risks. In setting up limits for each bank, the Company RUB 31BN bases its choice on the financial sustainability and reputation of the contracting THE COMPANY'S INVESTMENT bank. As a consequence, Ingosstrakh IJSC’s investments in credit instruments 52 are represented by top Russian banks whose financial reliability is confirmed by 53 PORTFOLIO leading international and Russian rating agencies.

As for its investment into non-bank financial instruments (bonds, shares etc), the Company exercises the same approach when setting up limits both for groups of instruments and for individual issuers. In forming its securities port- In 2008, the size of the investment portfolio was reported to reach around folio the Company is focused on the quality of investments, where the aver- RUB 31bn. In January-December 2008 the portfolio of short-term financial age quality should meet the Company’s current rating BBB- (according to S&P) investments increased by RUB 2.5bn, or 9%. requirement. The major share in Ingosstrakh’s investment portfolio is accounted for by invest- Given the macroeconomic situation in Russia and the situation ments in bank instruments. In 2008, the rate of return was 8.9%, or RUB 1840mln in the external markets in 2008, the major focuses of Ingoss- in absolute terms. trakh’s Investment Policy were: The Company’s investments in stock market instruments are mainly represented by low-volatility financial deposit-equivalent instruments. The weight of shares • credit risk management; as the highest risk asset class as at the end of 2008 in the aggregate portfolio of short term financial investments was 3%, or RUB 1bn only. • credit rating improvement of the Company’s investment portfolio;

• management of the Company’s current liquidity against the background of the liquidity crisis in the banking sector;

• management of currency risks in an environment of high volatility in the main foreign currency exchange rates.

While working on the achievement of its goals, the Company completed a number of initiatives:

• Major reduction of investments in banks with international credit rating below BB- and increase of investments with banks with high international ratings and government capital participation (Sberbank, Gazprombank, Transcreditbank, Rosselhozbank);

To assess the efficiency of the actions taken, the Company installed Customer Marketing Feedback System terminals in most Moscow offices and conducted client sat- isfaction research in the first half of 2008. At the end of the year the Company organized a Mystery Shopper project in five major cities to benchmark with key A client-oriented strategy has been the core of Ingosstrakh IJSC’ competitors. The results showed that Ingosstrakh IJSC is taking a lead in regard marketing policy throughout 2008. During this year Ingosstrakh to most positions, including the interior design of our offices, consultation qual- IJSC has been actively improving the product range of volun- ity, product presentation and appearance of personnel. tary insurance in order to provide clients with the best possible In 2008 the Company developed new medical insurance programs for our terms of insurance. corporate business partners and clients. We specifically focused marketing and advertisement support on the advantages of insuring with the ISCJ Ingosstrakh The Company launched a brand new package product ‘Homobile’ designed agricultural risks, ships and ship-owners’ liability, aviation risks, transport opera- specifically for the Russian retail segment with key feature being the possibil- tors, non-industrial risks and other types of corporate insurance. ity of the simultaneous insurance of property and motor vehicles. Experienced and cautious drivers benefited from a new product ‘Autoprofi’ that offered Due to the consistency of marketing policy, the brand ‘Ingosstrakh’ has become significant savings subject to an accident-free driving record. Another insurance significantly more recognizable in 2008 (the so-called ‘prompted recognition’ product ‘Pravilny’ intended for right-hand drive cars was launched in the Far method was used for exact measurement). The TNS Gallup Research Company East Federal District of Russia. indicates that judging by this criterion ISCJ Ingosstrakh is firmly settled among top three absolute market leaders and the level of brand recognition has been 54 In 2008 the Company developed ’Platinum Sport’ – a special travel insurance steadily growing throughout 2008. 55 product for Russian fans attending EURO UEFA 2008 games.

Ingosstrakh IJSC and key vehicle manufacturers conducted joint campaigns which allowed our clients to obtain high-quality insurance coverage directly through auto dealers and saving them a trip to the insurance company. THE MYSTERY SHOPPER RESEARCH WAS HELD IN 5 MAJOR CITIES OF INGOSSTRAKH IJSC PRESENCE NEW INSURANCE PRODUCTS ARE LAUNCHED: 'HOMOBILE', 'AUTOPROFI', 'PRAVILNY'

The launch of new products in 2008 was accompanied by intensive integrated advertising campaigns throughout the Russian Federation.

Ingosstrakh IJSC is committed to making clients feel comfortable when visiting the offices of the Company. Specifically, we try to make sure that any interac- tion through numerous sales channels is based on the principles of an attentive and respectful relationship with the client. In order to achieve these goals the Company renovated more than 150 offices in Russia into stylish and modern insurance centers, including the installation of new equipment and furniture, and decor in compliance with Corporate Style Guidelines.

Deliverables in major areas of business Рersonnel Annual Report Open Joint Stock Insurance 2008 Company Ingosstrakh

At the end of 2008, the headcount in the Moscow headquarters was 2298 people, while the regional network totaled 3169. 58% of employees are in the age range of up to 35 years old. About 80% have tertiary education. 80% of all employees are college educated The Company has adopted a Corporate Ethics Code. One of its key missions is to form loyalty to the Company as the highest standard of ethical behavior. The key principles of the Code are the principles of relationships between the employees, with business partners, the principles of honest and fair business.

The principles of corporate culture and traditions that have formed over the years of the Company’s existance must be strictly pursued by all employees. In 2008 the Management of the Company initiated the termination of the contracts of 14 employees on the grounds of non-compliance with the above principles.

In 2008 the company recruited specialists to engage in a number of areas. The recruitment process was based on the criteria of basic professional knowledge, 80% availability of relevant experience, knowledge of foreignlanguages, active 1900: the number of Company life position, results-orientation and the willingness to learn and develop 3531professionally. 2298 59 employees who attended teaching seminars and training sessions in 2008

2298 employees in the head 1900 office in Moscow 2298 THE NUMBER OF EMPLOYEES IN THE 80% HEAD OFFICE IN MOSCOW

58% 1614 people completed 3169 58% of the employees distance training courses THE NUMBER OF EMPLOYEES IN THE are younger than 35 REGIONAL CHAIN

3169 employees Professional training is realized through targeted programs offered through in the regional the Corporate University. The goal of professional training for employees of the Company is to improve their level of competence in order to meet the chain Company’s strategic targets.

In 2008 educational events dedicated to various subjects were attended by 3514 6316914 1614 employees, including seminars and training (1900 people), corporate distance people58% Рersonnel Open Joint Stock Insurance Annual Report Annual Report Open Joint Stock Insurance Company Ingosstrakh 2008 2008 Company Ingosstrakh

training of the Company’s regional network agents. The School of Agents' course that is now a permanent option with regional branches of the Company offered basic training to 991 agents. The Corporate University developed and implemented another project aimed at introducing an institute of in-house trainers. The Company selected and trained 30 employees from regional centers to deliver adaptation sales training. In 2008 Ingosstrakh’s in-house trainers delivered basic selling skills training to 473 new employees and insurance agents. 1900 THE NUMBER OF COMPANY'S EMPLOYEES In 2008 the Company held its eleventh traditional competition among students WHO ATTENDED TEACHING SEMINARS to select the best work on insurance. To commemorate the name of V.I. Sherbakov for his outstanding contribution to Russian insurance, the competition AND TRAININGS IN 2008 was called the Sherbakov Competition. The Sherbakov Competition admitted works completed by students of 22 Moscow and regional universities, namely the Russian Federal Government Financial Academy, the State University of Management, Altai State University, Yugra State University, Urals State Technical University, etc. The Expert Council met in November 2008 to select the best student work on insurance. The Expert Council resolved to distinguish six works and awarded two grants and four encouragement awards to the amount of 1614 RUB 240,000. 60 THE NUMBER OF PEOPLE WHO COMPLETED 61 DISTANCE TRAINING COURSES 1379 THE NUMBER OF NEW AGENTS GRADUATED FROM THE CORPORATE 'SCHOOL OF AGENTS' ALL OVER RUSSIA

learning programs (1614 people). The company developed and integrated into the training programs a number of special programs aimed at developing skills in sales and dealing with clients, as well as fraud prevention skills in employees of the Company’s sales and claim settlement divisions.

In view of the new strategic goals in 2008, the Company was especially focused on the recruitment and training of insurance agents, namely on selecting candidates for training groups pursuing to a know-how methodology, and training on probation. The training program for agents in 2008 was offered in the form of the School of Agents and included lectures on all major types of insurance. The agents-to-be were trained by Ingosstrakh’s specialists in the fields of car insurance, medical insurance, property & liability insurance. In 2008 the School of Agents released 388 new agents.

The Company placed a major focus on developing selling skills in its insurance agents. The special training of selling skills was attended by 338 agents. The Corporate University successfully implemented its project of system-based

Рersonnel Рersonnel Risk management Annual Report Open Joint Stock Insurance 2008 Company Ingosstrakh

In order to ensure financial sustainability and operational ef- The Company's savings are more ficiency, Ingosstrakh IJSC adopted a risk management system than RUB 1bn based on a comprehensive approach to risk identification, un- derstanding, measurements and management. The risk management system is based on the following principles:

1205 cases of unproven • controlled decision-making process; payments were prevented • accurate, reliable and timely reporting; • independence of control. To avoid conflict of interest the control over decision-making divisions is vested in independent bodies;

• Information transparency. This principle is fully integrated with the bn management and risk control process.

The risk management system in the Company is regulated by internal norms and standards. Risk management and efficiency assessment of the risk 65 management system in place are handled by the Company 1205 management and the following divisions and committees: • The Audit Committee under the Board of Directors, a consultative body in RUB charge of handling matters related to the preparation and delivery of financial reporting, internal control and risk management systems in the Companyy, external and internal audit processes, and compliance issues, i.e. compliance with A joint project on reengineering the laws of the Russian Federation, Ethics Code and Corporate Behavior Code; of business processes in the medical • The Insurance Committee, a collegial body which is responsible for decisions 5100 regarding the feasibility of large-scale insurance contracts.The Committee sets insurance sector with Accenture company was completed in 2008 up limits of net retention on insurance transactions and approves the structure 1 and key parameters of reinsurance protection of IJSIC Ingosstrakh’s insurance employees portfolio. It determines the authority of IJSIC Ingosstrakh’s divisions as applies to their insurance activities. It also determines the limits for the operating division on the amount of insurance contracts and on the amount of claims paid. It is also in charge of settling the claims in excess of such limits; 5100 Company employees are the active • The Financial and Investment Committee, a collegial bodyy, which is in charge users of the Ingosstrakh IJSC automated of setting up limits for all investments by the Company both as applicable to information system (AIS) issuers and to individual instruments;

• The Administration for Assessment and Control of Insurance Activities, which is called upon to analyze the risks undertaken for insurance, control operational and regional division in terms of undertaking risks for insurance and to control validity of compensations. The Administration develops recommendations to the Insurance Committee as regards powers and authority to sign insurance contracts, payout of indemnities and set up limits for decisions made by officers 1205 during insurance activities. It also develops and implements initiatives in managing insurance risks and controls of limits and tariff compliance across divisions and among officers of the Company; 2008 • Internal Audit Division, which monitors operational risks; in 20082344 Risk management Open Joint Stock Insurance Annual Report Annual Report Open Joint Stock Insurance Company Ingosstrakh 2008 2008 Company Ingosstrakh

• Center of Technical Expertise, which is in charge of pre-insurance due diligence of technically challenging objects with the right to adjust tariffs and Fraud include special reservations made in insurance contracts. The center is also involved in the process of settling relevant claims; In 2008 criminal pressure on the insurance business remained • Information Analysis and Protection Department. The Department protects the interests of OJSIC through identification and interception of abuse of powers intense and in some fields, like motor, life, and property through reliability clearance of employees, clients, partners and financial institu- insurance the pressure tended to grow. tions.

In view of the above, an important step made by the Company was the The deliverables of risk analysis exercises are especially important in the context strengthening of its fraud-resistance system through the adoption of a policy of shaping the general risk management strategy. They are fully accounted in that regulates cooperation between the Company employees in handling all relevant decisions made by the Company management. allegedly fraudulent claims and through overall cementation of norms, standards and methodologies in this area. The Company groups all risks into four major categories: In 2008 the Company was actively involved in the identification and banning • Insurance risks – Underwriting of the Company’s major loss-makers. Throughout the year the Company drew – Insufficient reserves up a list of 265 persons who claimed a significant number of losses and were – Major, catastrophic and acknowledged leaders in terms of insurance compensations received. All of cumulative risks these clients were banned from further insurance with Ingosstrakh. Therefore, 66 the Company continued to dispose of the pool of unfavorable clients. 67 • Financial risks – Currency-related risks – Liquidity The Company is specifically focused on resisting fraud in motor insurance. In – Market-specific risks 2008, the Company developed a Directory of risks of fraud in motor insurance. (changes in foreign exchange rates) Based on various fraud scenarios entered in the Directory, the Company developed a set of indicators that enables it to identify signs of fraud during Credit risks – Investments • acquisition, registration and investigation of losses, as well as during post- – Reinsurance-specific credit risks execution screening of insurance contracts. The Company has developed a list – Third parties of measures which it recommends to use during investigation or collection of • Operational processes – Processes information in the event of apprehension of fraud. – IT risks – Personnel In 2008, Ingosstrakh IJSC developed and obtained approval from the Federal Insurance Surveillance Service on the New Rules of Internal Anti-Money Laundering and Terrorist Financing Control. The Company completed analysis The general risk management system in the Company is based on a conven- and prevented risks of creation of obligations to pay insurance compensations, tional multi-level system of limits and monitoring of compliance with limits at including large-scale ones. It carried out a technical compliance audit of all levels of risk management. The limits are based on a posteriori mathematic its physical assets and implemented a number of initiatives to prevent modeling and long practical experience of the best insurers in each group of unauthorized disclosure of sensitive information. risks. The limits are set by independent bodies (committees) accountable to and controlled by the management of the Company. Altogether, in 2008 the Company’s innovations in this area helped to generate cash savings of more than RUB 1bn. A major portion of these savings is In 2008, the Company continued to improve its risk management system in attributed to preventing loss compensation payments with signs of fraud terms of risks and groups thereof. The major innovations introduced in 2008 (RUB 515mln). are largely connected with the Company’s operational risks: The assistance rendered to claim settlement divisions helped prevent invalid payments against 1205 claims in the amount of about RUB 50mln The Company lodged 44 claims with law-enforcement authorities which resulted in initiation of 15 criminal cases. The courts brought nine judgments of conviction in cases initiated on the grounds of Ingosstrakh’s claims.

Risk management Risk management Open Joint Stock Insurance Annual Report Annual Report Open Joint Stock Insurance Company Ingosstrakh 2008 2008 Company Ingosstrakh

business needs and job duties of the employees connected to the system. The Processes data can be retrieved only by authorized users in aggregate format only. Re- quests for access to analytical data can be made by managers above a certain level in the corporate hierarchy and only in relation to the information that falls Ingosstrakh IJSC is committed to continuous assessment and within their scope of competence. analysis of its business processes with a view to their optimiza- The Information System in place boasts a fault-tolerant architecture. All data tion within the framework of its strategic project ‘Reengineer- are backed up, and the servers are securely protected and geographically ing of Business Processes’. In 2008, the Company completed spread. The system is technically supported by leading hardware and soft- a joint project with Accenture company with an aim to reen- ware suppliers. The risk of failure in the Company’s processes as the result of gineer the business processes within the medical and medical ineffective IT maintenance is minimal. The Company has its own in-house team insurance division. of expert system administrators who monitor operation parameters of the system on a daily basis and ensure continuous feedback from the system users.

Support and extension of communication channels is in the first lines of the Once the project was finalized, the project team prepared a description, Company’s agenda. All Moscow-based offices of the Company are intercon- economic efficiency assessment, update and reconciliation of the target nected with fiber optic channels and are part of the unified corporate-wide business processes, prepared and obtained approval on the organizational network to allow users access the centralized database and shared information structure of the Medical insurance department along with an action plan of resources. Regional divisions are connected to the information system through strategic initiatives and introduction of changes in business processes. The dedicated protected data channels. The high quality and rate of data transmis- optimization of the business processes in place helped to significantly improve sion are achieved through duplication of data channels. 68 overall efficiency of this business in the Company and enabled the department 69 to approach global standards. Throughout 2008, the Company continued modernization of its automated information system along with the development of the insurance business in In 2008, the Company continued to carry out ‘Loss adjustment system the Company. The number of active system users increased from 4300 to 5100 improvement in retail insurance’, the project aimed at realizing the during the year. In addition to the Company employees, external users, includ- Company’s cost reduction potential in settling motor insurance claims and ing auto dealers and car service & repair stations, now actively use the system. optimizing target business processes and improving overall client orientation. Implementation of advanced information technologies will contribute to major In order to reduce its risks, the Company completed implementation of an reductions in the Company’s costs while boosting its revenues, particularly in automated invoice validation system that processes invoices issued by the car subrogated claim. service & repair stations the Company works with. The loss control system that was implemented in the head office and consists in the analysis of signs of insurance fraud was rolled out in the regions where the Company operates.

In order to improve operational efficiency, Ingosstrakh introduced the risk- IT Risks protection assessment module that applies to insured objects and electronic workflow in acquisition of risks in retail insurance. The Company also introduced an automated tariff calculation system that allows for the customization Ingosstrakh IJSC has a reliable high-tech information system of calculation formulas and calculation of tariffs by users. which provides the Insurer with one of its key competitive Since 2008 the Company has been working on improving the efficiency and advantages as a market player. reliability of its information system. The Company has now completed modernization of the key servers and replaced the central disc subsystem. The ap- The automated information system in Ingosstrakh IJSC covers the whole re- plication servers are currently being converted to a modern and more reliable cord and accounting lifecycle for insurance, reinsurance and general purpose technology. contracts and related losses. The insurance subsystem is integrated with the accounting one to allow automatic generation and retrieval of the reports compliant with the provisions of applicable legislation and norms, including creation of reserves.

In order to support its IT system at a high level, the Company continues to be dedicated to continuous development and improvement of methods of protection and management of risks that may arise in its business. Managing the risk of theft of confidential information is the priority, therefore, the emphasis is laid on the integrity of the information the system contains. Access to criti- cal information is clearly segregated throughout the Company based on the

Risk management Risk management Communications Annual Report Open Joint Stock Insurance 2008 Company Ingosstrakh

Government relations

The main efforts of the Company in PR activities were focused Title on the further development of cooperation with state structures in shaping the insurance regulatory environment as well as in the creation of favorable terms for the Company.

For these purposes the Company concentrated on the analysis ofLaws in force and drafts to initiate suitable amendments and to initiate corresponding public discussions. partner In 2008, Ingosstrakh’s experts and specialists actively took part in working out existing Laws in force and regulations, e.g. Amendments Law to Article 12 of the Federal Law on Agricultural Development, Amendments Law to the Federal Law 15,000 on Compulsory Motor Vehicle Third Party Liability Insurance, Amendments Law 73 Ingosstrakh IJSC is the title partner to Article 35 of the Federal Law on Competition. of the Kremlin Cup, the international 15,000 publications featuring Ingosstrakh IJSC tennis tournament appeared in various media over the last year During the year the Company actively participated in working out of Act Ingosstrakh IJSC is the drafts including the Amendments to the Federal Law on Compulsory Motor Davis Cup official partner Vehicle Third Party Liability Insurance, Amendments to the Federal Law on Organization of Insurance Business in the Russian Federation (as to the financial institutions), Amendments to Laws concerning the replacement of 8 licensing by compulsory insurance of civil liabilityy, and draft of the Federal Law on Compulsory Civil Liability Insurance of Owners of Hazardous Facilities for Infliction of Damage as the Result of Breakdown or Accident.

The Company’s experts were active participants of consulting bodies of the 12 federal authorities (i.e. Expert Boards and Working Groups of the Ministry of years Economic Development, Ministry of Finance, Federal Insurance Surveillance Davis Service, Chamber of Accounts, State Duma Committee on the Financial Market, Federation Council Committee on Financial Markets and Money Circulation, etc).

Currentlyy, Ingosstrakh is a member of more than 60 professional NGOs in Russia and abroad, including the All-Russia Union of Insurers, Russian Union of Auto Insurers, National Union of Liability Insurers, Russian Union of Industrialists Ingosstrakh IJSC is the only insurer and Entrepreneurs, Chamber of Trade and Commerce, International Union of 4 Marine Insurers, IRU, IMIA, etc. Participation in these organizations represents rated among the most valuable Russian Cup brands for 4 years in a row an effective mechanism for the development and reconciliation of a shared position of the professional market participants for the further development of insurance in Russia.

Journalists from 16 major cities attended the insurance seminar held by the company in November 15 16 Communications 16 cities4 Open Joint Stock Insurance Annual Report Annual Report Open Joint Stock Insurance Company Ingosstrakh 2008 2008 Company Ingosstrakh

awards, and shortly afterwards, in the summer, it won the Glory of the Nation Award and received the Golden Diploma. In December, it was announced Public relations the winner of the national Company of the Year business award and Business Atlants-2008. Ingosstrakh IJSC is the only Russian insurer to be included in the rating of Russia’s most valuable brands for the fourth consecutive year. The In 2008, Ingosstrakh’s major efforts in public relations were tar- Company became the winner in the Information Transparency category of geted at cementing the Company’s positive image and improve- Expert 400 for the third consecutive year. The Company was also the winner of ment of the insurance culture. These objectives were success- a competition organized by the Financial Press Club as the Russian Insurer with fully met due to the Company’s efficient coordination with the Best Transparency (platinum diploma) and the winner of the Financial Elite of media. Ingosstrakh IJSC builds its relations with journalists and Russia Award as the Most Reliable Insurer. partners on the principle of information transparency and mu- tual respect.

In 2008, Ingosstrakh IJSC continued to work at boosting the popularity of insurance services. The Ekho Moskvy radio station broadcast ‘The Risk Factor’, a program on insurance with the participation of Ingosstrakh’s experts, for the THE JOURNALISTS FROM 16 MAJOR CITIES last four years. The program invites representatives of the business community, rating agencies and state authorities as guests and commentators on the ATTENDED THE INSURANCE SEMINAR show. The materials of the show were released in the Q&A column under HELD BY THE COMPANY IN NOVEMBER 74 the same name in Arguments & Facts, a popular newspaper, and in the Auto 75 Panorama Magazine. In 2008, Zvezda Channel launched a show titled ‘Simple Economics’ that was dedicated to insurance. Ingosstrakh’s experts act as key speakers in all insurance-related surveys in the national newspapers, radio shows and TV programs. Ingosstrakh IJSC is one of the major newsmakers in the media field. In the autumn of 2008 when the international economic crisis was gaining 15,000 momentum Ingosstrakh released articles and publications on the minimization THE NUMBER OF PUBLICATIONS of risks in more than 20 newspapers and magazines. FEATURING INGOSSTRAKH IJSC Ingosstrakh IJSC was active in the information field both in Moscow and in APPEARED IN VARIOUS MEDIA FOR the Russian regions. Its effort resulted in the publication of a large number of materials dedicated to insurance. In November 2008, the headquarters THE LAST YEAR of Ingosstrakh IJSC in Moscow hosted a seminar for regional journalists that gathered media representatives and journalists from 16 of the largest cities of Russia. For two days the regional press makers were offered access to first-hand information on insurance. The seminar was attended by Director of the Federal Insurance Surveillance service I.V. Lomakin-Rumiantsev, senior managers from Ingosstrakh IJSC, leading insurance market experts and representatives of rating agencies and government authorities. After the seminar, publications on the issues appeared in all major national and regional print media.

Altogether, in 2007 the news websites of information agencies, print media, radio stations and TV channels released more than 15,000 materials covering Ingosstrakh IJSC, including 10,000 releases in the central press.

The achievements of Ingosstrakh IJSC in 2008 were noted by a number of prizes and awards. In May 2008, Ingosstrakh IJSC was the winner of the Golden Salamander Awards in the main category, ‘Quality of Insurance Services in 2007’. In April 2008, Ingosstrakh was the winner of BRAND of the YEAR/EFFIE 2007

Communications Communications Open Joint Stock Insurance Annual Report Annual Report Open Joint Stock Insurance Company Ingosstrakh 2008 2008 Company Ingosstrakh

Ingosstrakh IJSC participated in the All-Russia charitable initiative ‘Under the Banner of Kindness’ which is held annually and is designated to provide Charity targeted medical assistance to seriously ill children. The Company covered the and sponsorship cost of surgeries in excess of RUB 800,000. Ingosstrakh IJSC sponsored the subscription for the disabled to the Hope Newspaper published by the Russian Disabled Society. As part of its partnership with the Russian Foundation ‘Help’ of Kommersant Publishing House during the year Ingosstrakh IJSC Besides, Ingosstrakh IJSC made charitable donations to the State Hermitage Museum, State Tretyakov Gallery, and the State Academic Svetlanov Symphony rendered targeted support to seriously ill children through alloca- Orchestra. tion of more than RUB 5mln to cover the cost of surgeries, medical treatment during rehabilitation, acquisition of medication and Ingosstrakh’s partnership with the Kuzkin Amateur Hockey Support and artificial limbs. This support helped save the lives of 12 children. Development Foundation has now seen four successful years. The Foundation initiated the Olympic Hope project. In 2008, the Insurer provided financial support to sports and training sessions for young hockey players. For 11 years Ingosstrakh IJSC has been charitably helping school No 25 for children with musculoskeletal diseases. Ingosstrakh’s support has enabled more than 2000 children to complete their therapy.

76 The Company made donations to the Scientific and Research Institute of 77 Children Oncology and Hematology of the Russian Academy of Sciences, INGOSSTRAKH IJSC IS THE TITLE PARTNER as it has for more than ten years, to save the lives of children with oncological diseases. OF THE KREMLIN CUP, THE INTERNATIONAL TENNIS TOURNAMENT

INGOSSTRAKH IJSC IS THE ONLY INSURER RATED AMONG In 2008-2009, the Insurer has pursued its tradition as the official partner of the Russian Hockey Association. Ingosstrakh IJSC is the partner of the national THE MOST VALUABLE RUSSIAN and youth hockey teams of Russia. The company insured the players on the BRANDS FOR 4 YEARS Russian national team that were brilliantly victorious in the World Ice Hockey Championship in Quebec (Canada). IN A ROW The Company was again the General Partner of the Kremlin Cup, sponsored the celebration of the 100th anniversary of the Russian Tennis Federation and became the official partner of 1/8 finals of the Davis Cup between Russia and the Czech Republic and finals between Russia and the Czech Republic in Moscow. Ingosstrakh IJSC has successfully cooperated with the Russian Tennis Federation for eight years. Since 1998 Ingosstrakh has been a supporter of the Free School Charitable Foundation. In 2008 the Company made a contribution to cover the cost of Ingosstrakh IJSC is an active sponsor of Russian volleyball. The Company has medication and schoolbooks for children from underprivileged and low-income been partner and general sponsor of the All-Russia Volleyball Federation for families. Besides, the Foundation is the custodian of the Moscow hospice and eight years. Ingosstrakh’s money was used to buy the necessary medications.

In 2008, Ingosstrakh participated in the UNESCO project ‘Books for Blind Children’ once more. For more than ten years the Insurer has been making regular donations to finance the publishing of illustrated books in Braille for children with impaired eyesight. The Insurer financed the subscription for more than 200 children to the Atlas of Illustration Perception.

Communications Communications Key financial and economic performance parameters Annual Report Open Joint Stock Insurance 2008 Company Ingosstrakh Ingosstrakh holds an investment rating of ВВВ- level Performance IJSC results

The volume of gross written premium collected by Ingosstrakh RUB 46.3bn: IJSC in 2008 amounted to RUB 46.3bn, which is 19% higher insurance premium than in 2007. income in 2008 bn The net income generated by the Company reduced by 63.1% vs. 2007 to IngosstrakhоRUB 0.8bn. This reduction is caused by investment losses due to the impact of с 1.1 the financial crisis. The positive financial result triggered 6.1% increase in the Company’s equity to RUB 11.1bn. RUB 11.1bn: internal funds of the Company

Acknowledgement of the highest 81 rating of financial stability А++ by Expert RA agency

ВВВ-46.3 RUB BN 46.3 INSURANCE PREMIUM INCOME bn RUB IN 2008 The internal funds of Ingosstrakh IJSC А++ increased by 6.1% Financial stability rating

Ingosstrakh IJSC’s outstanding financial and economic performance and its information transparency are recognized by international and Russian rating agencies. 2 RUB 0.8bn: net profit of the Company In 2008, Standard & Poor’s International Rating Agency reaffirmed Ingosstrakh’s credit and financial stability ratings at BBB-, according to the international scale, and ruAA+ according to the Russian scale (negative outlook).

The key factors that shape the ratings are the following: 19% • Strong management team capable of meeting the goals of the Company’s ambitious development strategy to make Ingosstrakh IJSC from year to 0.8 19%: insurance premium year the leading universal insurer in Russia. 6.1%income growth bn RUB Key financial and economic performance parameters Open Joint Stock Insurance Annual Report Company Ingosstrakh 2008

• Over the past four years Ingosstrakh Group of companies has demonstrated sustainable high operating results despite ever increasing competition in the market.

• The obvious competitive advantages of Ingosstrakh Group of companies in the Russian market are underpinned by a stable reputation and experience in international markets. The Company is the leader in the segment of insurance and reinsurance of large commercial risks and is strongly posi- tioned in personal insurance.

• Diversification of the business in the CIS markets is qualified by the rating agency as a positive factor and as Ingosstrakh’s competitive advantage over its Russian peers. In 2008, the Company continued to expand its presence in the CIS, particularly in Ukraine, Belarus, Armenia, Kyrgyzstan, and Uzbekistan.

In 2008, Expert RA, a Russian rating agency reaffirmed the company’s highest financial stability rating at A++ level.

Below is the summary of the current ratings 82 of the Company:

Rating Rating of Rating Actualized agency Ingosstrakh IJSC scale on

Standard BBВ-, negative International 2008.11.25 & Poor’s outlook ruAA+ Russian

Expert RА А++ Russian 2008.04.04

Key financial and economic performance parameters

Open Joint Stock Insurance Annual Report Annual Report Open Joint Stock Insurance Company Ingosstrakh 2008 2008 Company Ingosstrakh

BALANCE SHEET OF THE INSURANCE ORGANIZATION

ASSET Line Opening Closing ASSET Line Opening Closing code balance balance code balance balance

1 2 3 4 1 2 3 4

I. Assets Deposit of assumed reinsurance premiums 150 222 902 174 979

Reinsurers share in insurance reserves 160 8 045 254 8 929 138 Intangible assets 110 10 408 12 134 including: Investments 120 28 929 878 33 326 707 life insurance reserves 161 - - unearned premium reserve 162 3 140 606 3 724 952 including: land 121 - - loss reserve 163 4 904 648 5 204 186 Insurance and co-insurance receivables 170 4 667 378 5 133 419 86 buildings 122 251 089 560 185 87 including: insured 171 4 287 758 4 658 202 financial investments into affiliates, 130 5 656 311 13 507 467 associates and other entities insurance agents 172 379 618 475 217

including: other debtors 175 2 - shares of subsidiaries and associates 131 356 433 3 815 950 Reinsurance receivables 180 1 193 621 1 194 010

debt securities of and loans granted 132 348 737 2 169 013 Other accounts receivable to, subsidiaries and associates (maturing in over 12 months after 190 87 251 81 012 reporting date)

equity contributions to 133 1 435 110 - Other accounts receivable (maturing within 12 months of the 200 2 179 721 1 755 866 affiliates and associates reporting date)

shares of other entities 134 3 369 954 1 103 933 Fixed assets 210 2 490 866 2 805 664 Construction in progress 220 1 329 030 1 782 036 debt securities of and loans 135 142 397 6 418 571 granted to, other entities Deferred tax assets 230 416 138 1 485 236

Inventories 240 231 142 325 475 contributions to charter (pooled) 136 3 680 - capital of other entities including: materials, consumables and other similar assets 241 70 795 131 331

other investments 140 23 022 478 19 259 055 prepaid expenses 242 160 347 194 144

including: other inventory and costs 245 - - state and municipal securities 141 145 261 7 830 Input VAT 250 - -

deposits 142 21 274 867 18 700 988 Cash 260 1 854 416 1 728 417

Other assets 270 - - other investments 145 1 602 350 550 237 Total per Section I 290 51 658 005 58 734 093 BALANCE 300 51 658 005 58 734 093

Key financial and economic performance parameters Key financial and economic performance parameters Open Joint Stock Insurance Annual Report Annual Report Open Joint Stock Insurance Company Ingosstrakh 2008 2008 Company Ingosstrakh

LIABILITIES Line Opening Closing payable to state non-budgetary funds 652 2 696 2 477 code balance balance tax and levies payable 653 36 417 74 439 1 2 3 4 II. Capital and reserves other creditors 655 98 365 123 464

Share capital 410 2 500 000 2 500 000 Dividend payable 660 1 014 1 289

Treasury shares 415 - - Deferred income 665 32 405 36 010

Additional paid-in capital 420 644 198 644 198 Provision for future expenses 670 469 098 529 469

Reserve fund 430 1 000 000 1 000 000 Preventive measures reserve 675 37 208 37 208

including: Other liabilities 680 - - reserves established in accordance 431 1 000 000 1 000 000 with legislation Total per Section IV 690 2 099 609 2 683 503 reserves established in accordance BALANCE 700 51 658 005 58 734 093 with charter documents 432 - -

Retained earnings (uncovered loss) 470 6 341 372 6 978 234 88 Total per Section II 490 10 485 570 11 122 432 89 III. Insurance reserves

Life insurance reserves 510 - - LIABILITIES Line Opening Closing code balance balance Unearned premium reserve 520 17 470 150 20 149 528 Loss reserves 530 15 871 905 18 393 103 1 2 3 4

Other insurance reserves 540 5 730 771 6 385 527 INFORMATION on Off-balance-Sheet items Compulsory Health Insurance reserves 550 - - Leased fixed assets 910 840 059 1 899 453 Total per Section III 590 39 072 826 44 928 158 including capital leased 911 10 938 10 938 IV. Liabilities

Payable for deposits of ceded 610 16 232 - Inventories accepted for safe custody 920 - - reinsurance premiums Bad debts written-off as losses 940 13 596 13 669 Long-term loans and borrowings 615 - - Assets received as collateral 950 435 462 1 142 565 Deferred tax liability 620 361 343 564 656 for liabilities and payments Short-term loans and borrowings 625 - - Assets pledged as collateral 960 1 093 037 772 404 Insurance and co-insurance payables 630 192 476 113 849 for liabilities and payments

including: Depreciation of housing assets 970 - - insured 631 - - Depreciation of land improvements insurance agents 632 141 127 52 926 and other similar assets 980 - - other debtors 635 51 349 60 923 Intangible assets received for use 990 - - Reinsurance payables 640 848 173 1 195 767 - 991 - - Other payables 650 141 660 205 255

including: wages payable 651 4 182 4 875

PROFIT AND LOSS STATEMENT

Investment losses 060 - - Indicator Line Over Same period code the period of the previ- including: ous year change in financial investment 061 - - value arising from revaluation 1 2 3 4 Life insurance operating results 070 - (813) I. Life insruance

Insurance premiums net of reinsurance 010 - (113)

insurance premiums gross 011 - 131

reinsurers share 012 - (244) Indicator Line Over Same period 90 code the period of the previ- 91 Investment gains 020 - - ous year

including: 1 2 3 4 interest income 021 - - II. Insurance other than life insurance income from equity participation 022 - - Insurance premiums, net of reinsurance 080 39 212 135 33 735 309 change in financial investment 023 - - value arising from revaluation insurance premiums gross 081 46 323 961 38 940 968

Insurance claims paid, net of reinsurance 030 - (3 055) reinsurers share 082 (7 111 826) (5 205 659)

insurance paid – gross 031 - (3 055) Changes in unearned premium reserve 090 (2 095 032) (3 180 523) net of reinsurance reinsurers share 032 - - changes in unearned premium 091 (2 679 378) (2 550 340) reserve – gross Net change in life insurance reserves 040 - 2 355 changes in reinsurers share 092 584 346 (630 183) changes in life insurance reserves – gross 041 - 2 355 in reserve

change in reinsurers share 042 - - Insurance claims incurred, 100 (23 714 040) (18 641 984) net of reinsurance

insurance operating costs, 050 - - Insurance claims paid, 110 (21 492 380) (16 785 939) net of reinsurance net of reinsurance

insurance benefits and claims paid – gross 111 (24 675 259) (19 266 859) acquisition costs 051 - - reinsurers share 112 3 182 879 2 480 920 other insurance operating expenses 052 - -

Change in loss reserve, 120 (2 221 660) (1 856 045) fees and bonuses – reinsurance 055 - - net of reinsurance

change in loss reserve – gross 121 (2 521 198) (1 489 918)

change in reinsurers 122 299 538 (366 127) Other income except investment- 210 2 510 288 1 319 495 share in reserve related gains

Changes in other insurance 130 (654 756) (1 643 884) including: reserves interest income 211 82 961 59 225

Deductions from insurance premiums 150 (152 298) (131 724) Other expenses except investment- 220 (2 150 940) (1 900 245) related losses including: deductions to guarantee reserve 151 (95 343) (43 908) including: deductions to current compensation 152 (56 955) (87 816) interest expenses 221 (12) (93) payments reserve Profit (loss) before tax 250 931 149 2 867 821 Insurance operating costs, 160 (9 040 969) (7 157 808) net of reinsurance Deferred tax assets 260 1 069 098 362 222 acquisition costs 161 (8 392 926) (6 586 214) Deferred tax liabilities 270 (203 313) (215 476) other insurance operating 162 (1 143 916) (804 422) expenses Current profit tax 280 (948 569) (869 349)

fees and bonuses 165 495 873 232 828 92 Profit tax abroad, tax on securities, 290 (81 503) (69 769) 93 penalties, other Result of operations other 170 3 555 040 2 979 386 than life insurance Net profit (loss) after tax 300 766 862 2 075 449

Indicator Line Over Same period code the period of the previous year Indicator Line Over Same period code the period of the previ- 1 2 3 4 ous year

III. Other revenues and expenditures 1 2 3 4 unrelated to Sections I & II REFERENCE Investment gains 180 18 284 104 11 834 309 Permanent tax liabilities (assets) 301 (128 883) 60 268 including: interest income 181 1 983 403 1 606 641 Basic earnings (loss) per share 305 0.31 0.83 income from equity participation 182 43 270 66 562 Diluted earnings (loss) per share 306 - - change in financial investment 183 1 453 915 1 217 849 value arising revaluation

Investment losses 190 (19 180 453) (9 489 333)

including: change in financial investment 191 (3 767 839) (980 477) value arising from revaluation

Administrative expenses 200 (2 086 890) (1 874 978)

Key financial and economic performance parameters Key financial and economic performance parameters Historical Milestones Annual Report Open Joint StockInsurance 2008 Company Ingosstrakh

1998: During financial crisis the Company demonstrated positive development trends and managed to preserve the trust of its customers November 16, 1947 Ingosstrakh’s birthday. On this dayy, the Council of Ministers of the USSR signed Regulation#3819-1281с on the Foundation of the Foreign Insurance Office of 2007: the 60th anniversary of the Company the USSR (Ingosstrakh) on the basis of the Foreign Operations Office (UINO) of 1947 Gosstrakh (State Insurance Authorityy) of the USSR.

1991: Ingosstrakh became an open November 16, 1947: 1948 joint-stock insurance company June 2, 1998Ingosstrakh’s birthday The Council of Ministers of the USSR approved the Regulation on Foreign 07year Insurance in the USSR (Ingosstrakh). 97 1948

2004: Standard & Poor’s, the international rating Ingosstrakh started to provide five types of insurance services, including cargo agency, officially announced that Ingosstrakh IJSC 1991 insurance, hull insurance, fire insurance, liability insurance and reinsurance. was granted long-term ВВ and ruAA ratings 2008: Standard & Poor's, the international rating agency, confirmed the counterpart's long-term credit rating and the financial stability of Ingosstrakh IJSC as ВВВ- with the Company's rating as ruАА+ over the national scale 1952

Ingosstrakh’s general representative office opened in Finland. Some of its year representative offices are still open. 2004 1997: signing08 of the agreement establishing the Transnational 2000 Group Ingosstrakh 1953 – 1971 Ingosstrakh opened representative offices inPakistan (1953), Egypt (1954), year Afghanistan (1955), Algeria (1963), Mali (1963), and Cuba (1971).

2000: Ingosstrakh was granted the best reliability rating А++ by Expert RA, the independent Russian rating agency 1997 980 Historical Milestones Open Joint Stock Insurance Annual Report Annual Report Open Joint Stock Insurance Company Ingosstrakh 2008 2008 Company Ingosstrakh

1956 – 1964 Late 1980s

Ingosstrakh’s subsidiary ’Black Sea and Baltic General Insurance Company The Company started to insure space risks, credit risks, joint ventures, and Limited’ (UK) started its representative offices in France, Egypt (1956), Syria different types of civil and professional liability. (1958), Lebanon (1961) and Sudan (1964). 1991

1958 Ingosstrakh became an open joint-stock insurance company. Its authorized capital grew by over 7.5 times. Insurance Company Garant was established in Austria.

98 1967 1994 99 The Company was issued a new license for insurance and reinsurance business. The Joint Soviet-Indian Bureau of Insurance was launched in Bombay (Mumbai). Some of such representative offices continue to operate nowadays. 1997 July 20, 1972 Signature of the Agreement establishing Transnational Group Ingosstrakh.

The Council of Ministers of the USSR issued a regulation that granted Ingosstrakh the status of the general foreign insurance office of the USSR. At the same time, Ingosstrakh acquired a new legal status – it was allowed to operate outside the USSR and, if necessary, in the USSR, as a joint-stock insurance company. 1998

In the times of the economic crisis of 1998, Ingosstrakh did not only survive but demonstrated positive development trends. It managed to preserve the most important thing, that is the trust of its customers and retained one of the most professional insurance teams in Russia. Its paid-in authorized capital increased 1972 from RUB 30mln to RUB 80mln. Ingosstrakh became one of the first Russian companies to offer its clients complex bank insurance protection (ВВВ), commercial insurance of export Ingosstrakh launched insurance of ship owner’s liability, as well as construction credits and guarantees, a range of professional liability insurance programs. & erection and aviation insurance. During the same year, the list of insurance The representative office opened in China. services extended to twenty.

Historical Milestones Historical Milestones Open Joint Stock Insurance Annual Report Annual Report Open Joint Stock Insurance Company Ingosstrakh 2008 2008 Company Ingosstrakh

Late 1998 May 12, 2004

Ingosstrakh’s network expanded to 42 units in the territory of Russia and Standard & Poor’s International Rating Agency made an official announcement 10 affiliates and representations in Europe, Asia and America. of Ingosstrakh’s long-term ratings: financial strength rating and counterparty credit rating ВВ, with a stable outlook. At the same time, Ingosstrakh was granted ruAA rating under the national scale. 1999

Ingosstrakh surpassed the pre 1998 crisis level of operations. The number of offered types of insurance totaled 66. May 25, 2004

The Company decided to issue additional stock and increase Ingosstrakh’s authorized capital to RUB 2bn. 100 2000 101 Ingosstrakh was granted the best reliability rating A++ by the independent Russian rating agency Expert. Its authorized capital increased to RUB 500mln. August 27, 2004

In Helsinki, the agreement was signed to establish the International Insurance Group INGO (the IIG INGO). Companies that offer support services to insurance 2002 and reinsurance joined the Group. Ingosstrakh manages their controlling stakes.

By this time, Ingosstrakh held licenses for 77 types of insurance, and its regional network of companies comprised 140 units. A new agreement establishing the Transnational Group (TNG) Ingosstrakh was signed. February, 2005

Public statement of the Development Strategy of the Company for 2005-2007. Its main objective was, inter alia, to increase its gross written premium to 2003 USD 1.45bn in 2007 and the Company capitalization to USD 1bn.

For the first time in history, Ingosstrakh’s gross written premium exceeded USD 500 ml. Ingosstrakh’s representative offices opened in Ukraine, Azerbaijan and Uzbekistan. Ostra-Kiev (Ukraine) and EFES (Armenia) joined TNG Ingosstrakh. The number of licensed types of insurance grew to 87. July, 2005

Registration of changes in the Charter of Ingosstrakh to reflect the increase in the authorized capital up to RUB 2.5bn. International Rating Agency Standard & Poor's stepped up Ingosstrakh's rating from stable to positive due to reassessment of risks related to the structure of the Company's investment portfolio.

Historical Milestones Historical Milestones Open Joint Stock Insurance Annual Report Annual Report Open Joint Stock Insurance Company Ingosstrakh 2008 2008 Company Ingosstrakh

2007 December, 2005 Ingosstrakh celebrated its 60th anniversary from its foundation. Ingosstrakh received Financial Elite of Russia Award as the Best Insurance New forms of licenses С #0928 77 and P #0928 77 were issued to Ingosstrakh Company of the Year. For the second consecutive year Ingosstrakh is nominated that authorized the Company to provide all types of insurance (with regards to the Best Insurance Company in Russia. Once again the Insurer received the specialization of insurance carriers) as set forth in Article 32.9 of the Law of the principal professional Russian Golden Salamander award. Ingosstrakh IJSC was Russian Federation on Organization of Insurance Business in Russia, as well as again included in the rating of the Most Valuable Russian Brands for the third reinsurance. In 2005, gross written premium of Ingosstrakh exceeded USD 1bn consecutive year. Standard & Poor's rating agency increased its long term credit – for the first time in almost 60 years of Ingosstrakh’s operation. rating and financial stability forecast for Ingosstrakh from BB+ to BBB-, outlook stable, and confirm its ruAA+ rating as to the national scale. 102 2006 2008 103 Standard & Poor’s International Rating Agency increased the financial strength rating and counterparty credit rating of Ingosstrakh to ВВ+ with a stable Ingosstrakh IJSC entered into a transaction stipulating acquisition of 76% in outlook. The Company rating on the Russian scale is ruAA+. the charter capital of an Uzbek insurer, Standard Insurance Group Limited. The transaction is part of Ingosstrakh’s strategy aimed to expand presence In Rome, Ingosstrakh signed Memoranda of Cooperation with the member- in priority insurance markets in the CIS. In September 2008 Closed Joint Stock companies of SACE Group, SACE Spa and SACE BT. The Memoranda provide for Insurance Company INGO UZBEKISTAN was registered by the Ministry of Justice, close cooperation between the parties in order to support and develop trade and the State Insurance Surveillance Inspection licensed INGO UZBEKISTAN to relations between Italy and Russia by insuring credit risks of national exporters. operate in 16 classes of insurance.

Standard & Poor's, an international rating agency, confirmed Ingosstrakh’s long term contractor’s rating and financial stability forecast at BBB- level, as well as the national scale rating at ruAA+. April, 2006

Ingosstrakh became the shareholder of OAO Chrezvychainaya Strakhovaya Kompania and purchased 71.25% of its shares from Guta Group. The transaction was closed in the conditions of higher capital concentration in the national insurance market and in anticipation of Russia’s accession to the WTO.

June, 2006

Closing of transaction for equity participation of Belgian Export Credit Agency ONDD in Ingosstrakh’s subsidiary SAO Garant. For the first time, Russian- European equal partnership entered the international credit insurance market.

Historical Milestones Historical Milestones Tax Ingosstrakh IJSC: account and address details Annual Report Open Joint StockInsurance 2008 Company Ingosstrakh

Full corporate name:

127994, Moscow, GSP-4, Open Joint Stock Insurance Company ’Ingosstrakh’ Telex Lesnaya st., 41 411144 INGS RU Abridged corporate name:

Ingosstrakh IJSC KP 115998, Moscow, Pyatnitskaya St., 12 bldg 2 Uniform State Register of Legal Entities 1027739362474 VAAT 7705042179 EIJSC Moscow KPP774401001 Head office postal address: 127994, Moscow, GSP-4, Lesnaya St., 41 107 39362474 Telephones: call center of the Retail Insurance Department +7 (495) 956-5555, general information office of Ingosstrakh +7 (495) 232-3211

Corporate website Fax: 705www.ingos.ru 411144 ING Lesnaya St., 41 +7 (495) 959-4518, 234-3600, 234-3601; Pyatnitskaya St., 12 +7 (495) 959-4405

general information office Telex: +7 (495) 232-3211 411144 INGS RU 115998, Moscow, Pyatnitskaya St., SC) (495)12 bldg 2 e-mail: ingos.ru [email protected]

Corporate website: Pyatnits www.ingos.ru VAT 7705042179 Lesnaya St. 11599VAT Ingosstrakh IJSC: account and address details Open Joint Stock Insurance Annual Report Annual Report Open Joint Stock Insurance Company Ingosstrakh 2008 2008 Company Ingosstrakh

Representative offices of Ingosstrakh IJSC abroad Affiliated companies abroad

Representative offices of Republic of Azerbaijan, AZ100, Republic of Azerbaijan Baku, A.Zeinaly St., 31-33 VAG SOVAG Schwarzmeer und Ostsee, Telephone: +994 (12) 497-03-31, Versicherungs-Aktiengesellschaft, 497-18-48 SOVAG, Schwanenwik 37, E-mail: [email protected] 22087 Hamburg, Germany Telephone: +49 (40) 22-71-28-14 Fax: +49 (40) 22-57-19 Representative offices of Republic of Kazakhstan, 480021, e-mail: [email protected] Republic of Kazakhstan Almaty, Pr. Dostyk, 43 www.sovag.de Suite 501, Dostyk Business Center Telephone: + 7 (7272) 58-82-88 VAG GARANT GARANT, Versicherungs-Aktiengesell Fax: +7 (7272) 58-45-54 schaft, Wohllebengasse 4, Postfach 200, e-mail: [email protected] A-1040 Vienna, Austria Telephone: +43 (1) 505-28-96 Fax: +43 (1) 505-28-96-30 Representative offices of Republic of Uzbekistan, 700015 e-mail: [email protected] 108 Republic of Uzbekistan Tashkent, Afrosiab St., 12B www.garantinsurance.com 109 Telephone: + 998 (71) 152-28-98 Fax: + 998 (71) 140-04-74 e-mail: [email protected] IngoNord Insurance Company Vakuutusosakeyhtio IngoNord, Salomonkatu 5C PL 218, 00101 Helsinki, Finland Telephone: +358 (9) 25-10-30-0, Representative offices of Ukraine, 04050, 25-10-30-15 Ukraine Kiev, Pimonenko St., 13, Suite 6A/16 Fax: +358 (9) 25-10-30-99 Telephone: +380 (44) 247-69-67 e-mail: [email protected] Tel./Fax: +380 (44) 247-69-66 www.ingonord.com e-mail: [email protected]

Closed Joint Stock ASK INGO Ukraine, Representative offices of India Ingosstrakh Mumbai Insurance Company 01054, Ukraine, Kiev Representative Office, ASK INGO Ukraine Vorovskogo St., 33 Stock Exchange Building, 20th floor Telephone: +380 (44) 490-27-44, East Wing Dalai St., Mumbai, 490-27-45 400023, India Fax: +380 (44) 490-27-48 Telephone: +91 (22) 22-72-19-59 e-mail: [email protected] Fax: +91 (22) 22-72-19-06 www.ingo.com.ua e-mail: [email protected]

Closed Joint Stock ASK INGO Ukraine, Representative offices of China Ingosstrakh Beijing Insurance Company 01015, Ukraine, Kiev Representative Office, ASK INGO Ukraine Citadelnaya St., 3 Telephone: +380 (44) 390-57-47 Suite 0405, Guangming Building, e-mail: [email protected] Liangmaqiao Road, Chaoyang District, Beijing, 100016, China Telephone: +86 (10) 64-68-58-52 Fax: +86 (10) 64-68-58-53 e-mail: [email protected]

Ingosstrakh IJSC: account and address details Ingosstrakh IJSC: account and address details Open Joint Stock Insurance Annual Report Annual Report Open Joint Stock Insurance Company Ingosstrakh 2008 2008 Company Ingosstrakh

Closed Joint Stock Republic of Armenia, Insurance Company Ingosstrakh M 115998, Russia, Moscow, Insurance Company 0010, Yerevan, Tpagrichneri St., 8 Pyatnitskaya St., 12, bldg. 2 INGO ARMENIA Telephone: +374 (10) 54-31-34 Telephone/fax: +7 (495) 232-34-91 Fax: +374 (10) 54-75-06 e-mail: [email protected] e-mail: [email protected] www.ingoarmenia.am Chrezvychainaya Strakhovaya 127473, Russia, Moscow, Compania (Emergency 2 Samotechny pereulok, 7 Closed Joint Stock 220050, Belorussia Insurance Company) Telephone: +7 (495) 780-50-05 Insurance Company Minsk, Myasnikova St., 40 e-mail: [email protected] BelIngostrakh Telephone: +375 (17) 203-58-78 http://www.chsk.ru/index.php Fax: +375 (17) 217-84-19 e-mail: [email protected] www.belingo.by Ingosstrakh Investments 115998, Russia, Moscow, Management Company Pyatnitskaya St., 12, bldg. 2 Telephone: +7 (495) 720-48-98 Joint-Stock Kyrgyz Republic Fax: +7 (495) 720-48-98 Insurance Company 219, Pr. Chyi, Bishkek, 720000, Kyrgyz e-mail: [email protected] 110 Kyrgyzinstrakh Republic http://www.ingosinvest.ru 111 Telephone: +996 (312) 61-45-88 Fax: +996 (312) 61-46-45 e-mail: [email protected] www.kyrgyzinstrakh.com.kg LMS Clinic 119146, Russia, Moscow, Komsomolsky prospect, 28 Telephone: +7 (495) 782-88-82 Closed Joint Stock 100128, Republic of Uzbekistan e-mail: [email protected] Insurance Company Tashkent, Shaikhontakhursky District http://www.7828882.ru INGO Uzbekistan Zulfiakhonim, 112 Telephone: +998 (71) 150-99-99 Telephone/Fax: +998 (71) 150-01-01 e-mail: [email protected] Promtechzashita 394039, Russia, Voronezh Region, Voronezh, Lidia Ryabtseva St., 54 Telephone: +7 (4732) 39-72-13

Affiliated companies in Russia

Security Audit 394006, Russia, Voronezh Region, Voronezh, Kutsygin St., 21 LLIC Ingosstrakh Life 115191, Russia, Moscow, Telephone: +7 (4732) 39-04-83 B. Tulskaya St., 10, bldg. 9 Telephone: +7 (495) 232-34-89 Fax: +7 (495) 232-34-89 e-mail: [email protected] MSK EMESK 355035, Russia, Stavropol, Pervaya Promyshlennaya St., 3 Telephone: +7 (8652) 56-06-72 Fax: +7 (8652) 56-06-71 LLC TIM Assistance 115191, Russia, Moscow, e-mail: [email protected] B. Tulskaya St., 10, bldg. 9 Telephone: +7 (495) 232-34-89 Fax: +7 (495) 232-34-89 e-mail: [email protected] Non-State Pension 115191, Russia, Moscow, Fund Ingosstrakh B. Tulskaya St., 10, bldg. 1 Pension Fund Telephone: +7 (495) 921-32-23 Fax: +7 (495) 725-73-40 e-mail: [email protected]

Ingosstrakh IJSC: account and address details Ingosstrakh IJSC: account and address details