Insurance Profil Kazakhstan by Cristian Laceanu

summary

KAZAKHSTAN - INSURANCE MARKET

Special Issue

SEPTEMBER 2013

Kazakhstan - a regional economic power arising

Interview with Nurlan ABDRAKHMANOV Director of the Department of control and supervision methodology of the National Bank of the Republic of Kazakhstan 5 Legislation in Kazakhstan

The insurance market in Kazakhstan: state and prospects

FY2012 market results

1H2013 market results

Motor insurance - great achievements and great prospects

Interview with Vitaliy GARSTEA, General Director, Actuarial Bureau of Statistics, about the five-year history of the Kazakhstan United Insurance Database 28 Interview with Kulbanu MUSAEVA, General Director of JSC Guaranty Fund of the Insurance Payments

Reinsurance in Kazakhstan - a quality change in course

Threats and benefits of international integration

Competitiveness of local markets in the context of globalization

Company profiles

34-39

Kazakhstan - Besides business

Although Media XPRIMM has made every effort to ensure accuracy of this publication, neither it or any contributor can accept any legal responsability whatsoever for consequences that may arise from errors or ommisions or any opinions or advice given, as well as for the actions or cecitions taken based on the articles content. Reproducing of the contents of this publication in any manner is prohibited without the prior consent of the publisher. www.allinsurance.kz

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KAZAKHSTAN - INSURANCE MARKET

General Profile

Located in Central Asia region, south of Russia and northwest of China, Kazakhstan could easily be defined as the heart of the Eurasian continent, a country with a generous territory equivalent to the entire Western Europe -, and inhabited by citizens of over 100 different nationalities. Its name, “land of Kazakh”, deriving from the ancient Turkish word “Kazak”, which means “free” or “independent”, fully reflects the character of a nation constantly striving for an independent sovereign life. Today, the country of the first horsemen, is an interesting economical partner, with a S&P’s BBB+ (stable) credit rating, a balanced political profile and a strong culture of hospitality.

Kazakhstan population ~ 17.02 million (2013 est.) life expectancy: 62.58 years (men), 73.47 years (women) hare of age 65+ in total population: 7.9% unemployment: 5.2% (June 2013 est.) Climate: Continental, cold winters, hot summers. Arid and semiarid. Ethnic structure: Kazakh 51.8%, Russian 31.4%, Ukrainian 4.4%, over 100 other nationalities – 12.4%. Religions: 46 religious confessions, including Muslims 47%, Russian Orthodox 44%, others, such as Roman Catholics, Protestants, Judaists at 9%. Language: Kazakh, spoken by over 52% of the population, is the state language. Russian, spoken by two-thirds of the population, is used in everyday business and enjoys an official status under the Constitution. Currency: Tenge (KZT) Internet domain: .kz Capital city: Astana. Major cities: Aktobe, Almaty, Astana, Karaganda, Pavlodar, Semey, Shymkent, Taraz. Major trade partners: Russia, EU, USA, China. Work week: Monday through Friday, 9.00-18.00. Natural resources: The world’s largest reserves of barite, lead, tungsten, and uranium; second largest reserves of chromium, silver, and zinc; third largest source of manganese, significant deposits of copper, gold, and iron ore. Oil reserves: currently 35 billion barrels (twice as much as the North Sea); 100-110 billion barrels by 2015 (would be in top 3 of the world). Natural gas reserves: currently 2 trillion cubic meters; 5 trillion cubic meters by 2015.

KZ - a regional economic power arising After 2 years of strong recovery, the Kazakh economic growth slowed from the over 7% yearly pace recorded in 2010 and 2011, to 5% in 2012. Similarly to the past years, the service sector was the main source of growth. As industry largely stagnated and a severe drought cut agricultural output by nearly 18%, the contributions of these two sectors to the GDP growth fell to their lowest levels in 15 years. According to an Asian Development Bank analysis, “growth is expected to recover slowly, to 5.2% in 2013 and 5.6% in 2014, as continued government investment spending boosts domestic demand.”

Flashback For many decades Kazakhstan was an agrarian economy and one of the main raw materials suppliers of the former Soviet economy. Inevitably, the USSR break-up in 1991 led to the collapse of demand for Kazakhstan’s traditional heavy industry products and resulted in a short-term contraction of the Kazakh economy which reached the steepest annual decline in 1994. In the following years, the economic reform and privatization program launched by the government have encouraged a substantial shifting of assets into the private sector of Kazakhstan. At first driven by the oil industry development – started with the Caspian Pipeline Consortium agreement to build a new pipeline from Western Kazakhstan’s Tengiz oil field to the Black Sea which led to strongly increased oil exports -, the Kazakh economy entered on a continuous upward trend after 2000. The government has embarked upon an industrial policy designed to diversify Kazakhstan’s economy away from over dependence on the oil sector by developing light industry and considerable progress was made in implementing complex political, economic and social reforms to establish a politically stable market economy.

Kazakhstan – a business destination What makes Kazakhstan one of the most interesting spots on the world’s economic map is its significant richness in oil and natural gas reserves. Also, the country’s large deposits of minerals and raw materials - 90 out of the 105 elements in the periodic table occur in Kazakhstan -, not only qualify it as an important provider of raw materials, but they also enable the strategic aspiration to becoming a modern, diversified economy with a high value added and a hightech component, well integrated into the global economy. The future of Kazakhstan’s economy is closely connected with the further integration into international economic relations, the efficient disposal of unique reserves of hydrocarbon and mineral resources, the export of industrial and agricultural products, the optimum employment of the country’s transit potential and also with the availability of highly qualified human resources in different spheres. Currently, among the major trading partners of Kazakhstan are Russia, the U.S.A., Uzbekistan, China, Turkey, U.K., Germany, Italy and Ukraine. Kazakhstan’s major exports include oil, ferrous and nonferrous metals, machinery, chemicals, grain, wool, meat, coal. Major imports of the country are machinery and parts, industrial materials, gas, and vehicles.

KAZAKHSTAN - INSURANCE MARKET

IMF: notable results during the last decade

Distribution of employees among the main economic sectors

According to the latest IMF mission’s conclusions (August 2013), “macroeconomic conditions of Kazakhstan remain solid, although growth has decelerated of late. Real GDP growth slowed from 7.5% in 2011 to 5% in 2012 and further to a still-solid 4.6% y-o-y during the first quarter of 2013. The strong growth has allowed employment to expand at about 2.5% annually over the last three years. Helped by moderating food prices, headline inflation has fallen to just below the 6-8% target range, while core inflation has remained stable at around 5-5.5%.”

July 30th 2013

The international institution’s report also shows that the Kazakh financial sector is gradually recovering. “Banks’ profits have improved over the past year, but remain weak, with the return on assets ratio for the largest banks (excluding BTA and Alliance banks) reaching just 1% last year. The system’s capital adequacy ratio increased from 17% to 18% in 2012, following the external debt restructuring and state-funded recapitalization of BTA. While the private sector credit growth remains moderate overall, consumer lending, concentrated in small- and medium-sized banks, is expanding rapidly (from a low base). Efforts to resolve the large stock of nonperforming loans (NPLs) are ongoing, but with limited impact so far.” As far as the non-banking sector is concerned, “Kazakhstan’s 11 pension funds, with total assets of USD 21.2 billion (11% of GDP), are being unified under the partial management of the central bank, following a Presidential decree early in 2013.” All in all, the Executive Directors of IMF welcomed Kazakhstan’s sustained growth performance, noting that the average growth of 8% over the past decade, supported by rising oil output and prices, has solidified Kazakhstan’s position as a regional economic power. Yet, the IMF analysts emphasized the need for further governmental action to reduce the economy’s dependence on oil.

2012 in macro figures Country ratings: In November 2011, SANDARD & POOR’S has upgraded Kazakhstan’s rating one notch to BBB+ (foreign currency), the third-lowest investment grade, with a stable outlook, citing the effect of rising commodity exports on fiscal and current account surpluses. The agency now rates Kazakhstan at the same level as

How Kazakhstan and comparator economies rank on the ease of doing business Kazakhstan

49 70

Regional Average (Eastern Europe & Central Asia)

Ukraine

137

Tajikistan

141

Source: Doing Business database

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17.05%

Health care and social services

9.12%

Manufacturing industry

8.97%

Government and defence; obligatory social security

6.40%

Transport and warehousing

5.65%

Construction

5.50%

The mining industry and working out of open-cast mines

5.45%

Wholesale and retail trade; car repairs and motorcycles

4.25%

Activity in the field of administrative and auxiliary service

3.11%

Electrical supply, giving of gas, pair and air-conditioning

2.88%

Agriculture, forestry and fishery

2.73%

Professional, scientific and technical activity

2.45%

Financial and insurance activity

2.16%

Information and communication

1.73%

Art, entertainments and rest

1.45%

Water supply and other branches producing services

2.76%

Population and labour: Out of the over 17 million inhabitants of Kazakhstan, about 9.06 million people are of working age, while the population of retirement age represents about 10% of the Kazakh citizens. The total number of employees, as of July 2013, was of almost 6 million people, according to the latest data provided by the Statistics Agency of the Republic of Kazakhstan, of which about 3.25 million were employed in large and mediumsized companies. The official unemployment statistics showed at the same time a number of 58 thousand registered unemployed people, although there are in total about 473 thousand jobless people in the country.

112

Education

One year later, FITCH confirmed the BBB+ (foreign currency), long term rating, placing Kazakhstan in the same category with Latvia, Ireland, Malta and Thailand, with a one notch higher rating than Russia, Brazil, Italy or Bulgaria.

Russian Federation

18.33%

Ireland or Latvia, one notch lower than Poland or Slovenia and at the immediate superior level of Brazil, Italy or Russia.

Kyrgys Republic

Moldova

Total industry

The average monthly income of the Kazakh citizens was, by the end of July 2013, EUR 276, while the level of the average monthly wages grew y-o-y by about 6%, to EUR 564.

185

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How Kazakhstan ranks on Doing Business topics Starting a Business (25) 185 Dealing with Construction Permits (155)

Resolving Insolvency (55)

Enforcing Contracts (28)

Getting Electricity (80)

Trading Across Borders (182)

Registering Property (28)

Paying Taxes (17)

Getting Vredit (83) Protecting Inventors (10)

Source: Doing Business database

Enterprises and FDI: There are 330,653 registered legal persons in Kazakhstan, of which 285,591 privately owned. Over 27,500 private companies have at least a partial foreign ownership, most of them headquartered in Astana or Almaty. The considerable Foreign Direct Investments (FDI) inflow to Kazakhstan was mostly driven by the favorable business climate and political stability of the country. According to the World Bank’s “Doing Business” report for 2012, Kazakhstan ranks 47 in the global ranking on the ease of doing business, moving up 11 positions as compared with the previous year. While due to its natural resources the country has been relatively successful in attracting FDI since independence in 1991, the year 2012 brought a record amount of foreign investments totaling USD 22.5 billion, as the Deputy Minister of Industry and New Technologies of Kazakhstan, Albert RAU, told the local press. “USD 171 billion foreign investments were attracted to the economy of Kazakhstan and 48% of this amount or USD 81.6 billion has been attracted over the recent 4 years. The last year showed record numbers – USD 22.5 billion was attracted with a 7% growth compared with 2011,” Albert RAU said. In addition, he explained that the FDI structure changed in the recent years, the share of the investments in the processing sector reaching more than 40% during the period of the State Program of Forced Industrial-Innovative Development implementation. Sources: The National Bank of the Republic of Kazakhstan The Agency of Statistics of the Republic of Kazakhstan The Asian Development Bank The International Monetary Fund The World Bank Standard&Poor’s Ratings Agency Fitch Rating Agency AboutKazakhstan.com www.kazembassy.org.uk

KAZAKHSTAN - INSURANCE MARKET

Kazakhstan’s insurance market is young, but it has a huge potential Interview with Nurlan ABDRAKHMANOV Director of the Department of control and supervision methodology of the National Bank of the Republic of Kazakhstan What are the main approaches of insurance market regulation in Kazakhstan?

impact on the insurance market of Kazakhstan? Assess the development of the insurance market in the country, before and during the time of the global crisis. How has the crisis on the international market affected the development and pricing of the insurance market in Kazakhstan?

At present, there are 35 insurance companies operating on the insurance market, including 7 life insurance companies, 13 insurance brokers and 77 actuaries. The participants of the JSC “Fund guarantee insurance payments” are 31 insurance organizations.

The insurance market in Kazakhstan is quite young and the creation of the domestic insurance market coincides with the recognition of Kazakhstan’s independence. The strong economic growth in the country, the increase of production of goods and services, and the population’s increased incomes contributed to the rapid growth of the insurance market. So, for the past 10 years, the amount of insurance premiums has grown more than 10 times.

Government regulation and supervision of the insurance activities is executed by the authorized institution – The National Bank of the Republic of Kazakhstan. The main objectives of state regulation of the insurance activities in Kazakhstan are: g The establishment and maintenance of a stable insurance system in the Republic of Kazakhstan and the formation of a national insurance market infrastructure;

During the crisis, the growth rate of the insurance market was kind of reduced. However, the overall insurance market withstood the shocks of the crisis. The influence of the environment on the insurance market, the volume of second level bank lending, the production of goods and services were all insignificant. Insurance companies maintained a high level of profitability due to the low loss ratio for voluntary property insurance.

g The regulation of the insurance market, the control and supervision of the insurance business; g The legislative strengthening of the foundations of insurance, the establishment of compulsory insurance, the principles of participation of the Republic of Kazakhstan in the international security;

Starting in 2010, there has been a positive trend in all the financial indicators of insurance companies: in terms of total assets, total liabilities, capital, insurance premiums and insurance claims.

g The protection of rights and legitimate interests of insured

and beneficiaries. To achieve these objectives, the government authority is authorized to implement the licensing of the insurance market, establishing a procedure for the creation of insurance companies, establishing capital requirements, shareholders, executives, prudential norms, the internal systems of risk management, a financial reporting insurance company, as well as the requirements for the formation and methods of calculation of insurance reserves, etc.

In terms of the impact of the financial crisis on the development and pricing of the insurance market it may be noted that, with the reduction in the period of crisis of second level lending banks, there was also a decrease in the volume of bancassurance, which contributed to the development of insurance companies in other areas, types of insurance, and non-banking activities.

The authorized entity also has empowered the use of enforcement measures and sanctions in the cases established by law with regard to insurance companies, insurance brokers and insurance companies’ members.

What are the main and most important innovations in the insurance legislation that have been made in recent years? How much have they affected the market generally?

To what extent has the global financial crisis had an

In the recent years insurance legislation has undergone many changes.

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The most important of them are: g The introduction of restrictions on those wishing to buy and

having the status of major party or insurance holding company, including non-residents of the Republic of Kazakhstan; g The maintenance of consolidated supervision of insurance groups and insurance holding companies, the establishment of a number of restrictions on the implementation by the insurance holding operations and transactions as business activities and transactions in securities; g Increased requirements for the capitalization of insurance companies, the introduction of differentiated limits of the risks retained by the insurance companies in case of reinsurance, the adoption of measures to increase the proportion of the local content in the reinsurance of risks, the introduction of rating requirements for Kazakh reinsurers; g The introduction of the independent actuariesâ&#x20AC;&#x2122; institution; g An increased responsibility of management staff and major participants (insurance holding companies) of insurance (reinsurance) companies for failing to meet the requirements of the legislation of the Republic of Kazakhstan and more.

These legislative amendments would eliminate such negative phenomena on the insurance market such as low capitalization of insurance companies, the low level of solvency of insurance companies, a high degree of business concentration, the lack of information transparency of activities of the insurance

companies and their shareholders, as well as a weak degree of responsibility held by executives of financial institutions. In recent years prohibitions and restrictions have also been introduced along with additional requirements for insurance companies and the expansion of authorized entitiesâ&#x20AC;&#x2122; credentials with regard to management staff, the major participants in the insurance companies, insurance groups and holding companies. Moreover, the strengthening of state regulations on the insurance market has been allowed and an increased level of the rights and interests protection of insurance service consumers has been imposed by minimizing the risks they are exposed to.

How do you evaluate the prospects of Kazakhstanâ&#x20AC;&#x2122;s insurance market in the conditions of the forthcoming integration of insurance markets in Russia, Belarus and Kazakhstan? Currently, the Customs Union is actively working on the formation of the Common Economic Space (CES), in which the creation of a common financial market, including the insurance market, is anticipated. To this purpose, the countries signed a number of agreements that aim at ensuring the free movement of the capital, the service trade and investment were also developed through a number of projects involving the procedural requirements for the implementation of the financial markets.

KAZAKHSTAN - INSURANCE MARKET

Reinsurance in Kazakhstan

In the framework of these agreements the terms and conditions of the integration activities are provided. In insurance a harmonization of the legislation is being considered in accordance with the international standards, the cooperation in the field of compulsory insurance, the reinsurance and brokerage business, consumer protection and financial stability of insurance companies. The integration activities will be staged and until January 1, 2020 it is expected to complete the harmonization process and to ensure the mutual recognition of licenses for activities on the financial market, including insurance. The creation of a common insurance market is the next step in the development of the domestic financial sector, which aims at further strengthening the financial market.

According to your opinion, what is the current state of development of the local reinsurance market? What are the main challenges and what are the immediate prospects for development? Analyzing the performance of the reinsurance market, it may be noted that over the past few years, this market situation has remained virtually unchanged. The main countries that attract the risks present in Kazakhstan, as before, are the Russian Federation, the United Kingdom, Germany and Switzerland.

The creation of a common market within the Common Economic Space, taking into consideration the number of insurance organizations in Russia, will increase competition in the insurance sector, and therefore on the domestic market we cannot rule out the possibility of reducing the number of insurance companies, including mergers and acquisitions.

Due to the tightening of the rating requirements in 2012 there was a marked increase in the proportion of the UK and Germany, and the decline in Ukraine, Spain, Bermuda, China, and Turkey.

However, there was a trend of increase in reinsurance from nonresidents by 21% in the first half of 2013, mainly from the Republic of Korea, the United States and the Russian Federation.

In 2012, the demands for the rating requirements for non-residents were tightened. In your opinion, could this be a signal of “closing” of this market?

Therefore, the Kazakh insurance companies, in order to gain a competitive advantage, should concentrate their activities on improving the quality of the insurance services, rather than maximizing revenue. In this regard, given the high level of competition in the segment of the insured entities, we believe that insurance companies must focus on retail insurance, develop new insurance products, improve the quality of service, enhance advertising policy to raise public awareness, etc.

Changes in the rating requirements in 2012 were associated primarily with ensuring the transparency of the reinsurance market and increasing the financial stability of Kazakh insurers. Also, limits were set on the amount transferred to non-resident liability and insurance premiums in order to increase the local content. The purpose of these restrictions is to encourage insurers to conduct a reasonable assessment of their underwriting risk and the possibility of self-retention, and not the “closing” of the external reinsurance.

Is the insurance market in Kazakhstan considered to be interesting for foreign investors? Are there any legal restrictions for foreign capital to enter Kazakhstan’s market? At the moment 7 out of 35 insurance companies have nonresident participants.

What are the plans of the regulator to improve the legislative framework of insurance and reinsurance?

The insufficient development of a system of voluntary insurance in Kazakhstan as well as the low competition level within the insurance companies are triggering a lack of interest among foreign investors on Kazakhstan’s insurance market.

In the near future, the National Bank will improve the legislation on insurance and insurance activities, including those aimed at: g Improving the effectiveness of the compulsory insurance system, including the establishment of clear criteria for the introduction and optimization of the list for compulsory insurance;

The current legislation provides for the possibility of participation of non-residents as founders and shareholders of insurance companies, according to the requirements of the Kazakh legislation. There are no limits set on foreign participation in the share capital of the insurance (reinsurance) companies.

g The further development of Islamic finance, including through legislative regulation of the activities of Islamic insurance companies and the establishment of the principles of Islamic insurance; g The implementation of international regulatory standards, including standards based on Solvency II and the principles of the International Association of Insurance Supervisors (IAIS).

Legal entities registered in offshore zones, may not directly or indirectly own and (or) use and (or) to dispose of the voting shares of the insurance (reinsurance) companies-residents of the Republic of Kazakhstan.

However, within the framework of the integration process and the harmonization of insurance laws, member states of the Common Economic Space are supposed to create the common insurance market, the introduction of common rules in the system of reinsurance risks by the insurance companies, including uniform requirements for the procedure for transferring the risks to reinsurance.

This restriction does not apply to insurance (reinsurance) organizations which are subsidiaries of insurance (reinsurance) of non-residents of the Republic of Kazakhstan with the minimum required rating from rating agencies. Non-resident legal entities in the Republic of Kazakhstan can obtain the consent of the authorized authority to acquire the status of insurance holding companies or that of major participants in insurance (reinsurance), provided that the minimum required rating be granted by the rating agencies.

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The volume of reinsurance premiums ceded abroad in the 1H2013 amounted to KZT 32 billion or 23% of the premiums received (23% also transferred in the 1H2012).

It should be mentioned that the system requirements for reinsurance risks within the Common Economic Space will also be established in accordance with the international standards and regulation principles.

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Legislation in Kazakhstan The basis of the national insurance legislation in Kazakhstan was laid on 3rd July 1992 with the adoption of the Law of the Republic of Kazakhstan “About insurance”. The main purpose of this law was the formation of the insurance market and the determination of the main provisions for insurance entities. The adoption of this law has contributed to the rapid development of the insurance market in Kazakhstan, but the absence of any special requirements for insurers, other than capital requirements, have led to negative consequences. As a result, the quality of insurance services was very low and the financial condition of insurers could not, in many cases, meet the obligations. Due to this situation, on 16th April 1994 in Kazakhstan was introduced a system of state regulation of insurance activities, and the regulator’s credentials have been transferred to the Ministry of Finance of the Republic of Kazakhstan. On June 30, 1998 the credentials of the state supervisory authority were transferred to the National Bank of the Republic of Kazakhstan, under whose leadership a major modernization of the insurance legislation was operated. The new law on insurance activities, which came into effect January 1, 2001, laid the foundations of Kazakhstan’s insurance legislation in conformity with the international principles and standards of the organization of insurance and insurance supervision. New prudential standards set mandatory standards and limits on the liability of the insurer or reinsurer under a separate contract of insurance or reinsurance, whereupon was approved the minimum size of its own and authorized capital and introduced a system of rating requirements for reinsurers and brokers non-resident.

In 2003, 11 relevant laws were adopted, which laid the foundation for a system of compulsory insurance in Kazakhstan. A present, out of the 11 types of compulsory insurance only 10 are valid. Since January 2004, the functions and credentials of regulation and supervision for insurance and other financial markets have been transferred to the Agency of the Republic of Kazakhstan on the Regulation and Supervision of the Financial Market and Financial Organizations. In 2006, the foundation of progressive harmonization of Kazakhstan’s legislation on insurance and insurance business were laid in accordance with the Directives of the European Union and the principles and standards of Insurance Supervisors IAIS. Ensuring solvency has been regarded as a major regulation goal. In fact, the requirements for financial stability, which gradually rose for Kazakh insurers, correspond today with the requirements of Solvency I. In Kazakhstan the application of models of capital assessment established by the EU directives suggests the following prudential requirements: g

The minimum size of the authorized capital;

The minimum size of the guarantee fund;

The minimum size of the solvency margin;

Norms of the adequacy of the solvency margin;

Norms of the adequacy of highly liquid assets;

Requirements for asset diversification.

By now, the requirements for the minimum guarantee fund for insurance (reinsurance) organization are: Resolution number 61 of the Board of the Republic of Kazakhstan’s Agency on the Regulation and Supervision of Financial Markets and Financial Organizations, of April 30, 2010, “Approval of Requirements for the formation, method of calculation of insurance reserves and their structure, reporting form and timing for insurance reserves.” Resolution number 83 of the Board of the Republic of Kazakhstan’s Agency on the Regulation and Supervision of Financial Markets and Financial Organizations, of 25th March, 2006, “Approval of the Rules of calculating the coefficients characterizing the loss ratio of the insurance (reinsurance) organization (as amended as of September 3, 2010).” Resolution № 131 of the Board of the Republic of Kazakhstan’s Agency on the Regulation and Supervision of Financial Markets and Financial Organizations, of September 3, 2010, “On the introduction of changes and amendments to some legal acts of Republic of Kazakhstan, on the Regulation and Supervision of Financial Markets and Financial Organizations (as amended by 24 February, 2012).” The Law № 126-II of the Republic of Kazakhstan from December 18, 2000 “On insurance activities (as amended and supplemented on June 21, 2013).”

Type of License License for “general insurance” (non-life) License for “life insurance” License for the civil liability insurance and compulsory insurance classes License for reinsurance as a singular activity License for “mortgage insurance”

Till 01.04.2010 350 500 450 900

Requirements for the minimum guarantee fund, KZT million Since 01.04.2010 Since 01.01.2011 Since 01.01.2012 420 500 600 650 850 1 100 590 760 1 000 540 650 780 1 080 1 300 1 500

KAZAKHSTAN - INSURANCE MARKET

The insurance market in Kazakhstan: state and prospects Institutional structure and assets

had 35 insurance companies and 7 of them were life insurers. The infrastructure of the insurance market is represented by 13 insurance brokers; the number of licensed actuaries is 7.

For more than twenty years the Kazakh insurance market has gone through several stages of development, which have varying degrees of influence on its current condition. In 2000, the number of insurance companies was 70, as of July 1, 2013 Kazakhstan

Financial performance of insurance companies, characterizing the financial stability, shows very good dynamics. Step-by-step capitalization of insurance companies and new approaches to the formation of insurance reserves allowed the insurance market in 2007 to increase assets more than twice, insurance reserves increased 2.5 times, and the insurerâ&#x20AC;&#x2122;s owned capital, almost twice.

Change in assets, owned capital and insurance reserves (KZT billion) 600

417.7

500.6

500

The structure of total assets of the insurance market in Kazakhstan is represented by most of the highly liquid assets: securities - 49.3% and deposits in banks - 23.5%, money - 5.1%. The obligations of insurance companies of 89.1% are made up of insurance reserves.

156.4

234.0

231.2 127.9

208.7 114.9

180.5

86.3

86.4

100

101.0

126.3

165.9

223.6

268.8

297.3

300

224.4 248.8

343.2

387.7

400

200

As of July 1, 2013 the assets of the insurance companies amounted to KZT 500.6 billion (USD 3.3 billion), owned capital represented KZT 248.8 billion (USD 1.6 billion) and insurance reserves â&#x20AC;&#x201C; KZT 224.4 billion (about USD 1.46 billion). But the role of the insurance sector in the economy of Kazakhstan is still quite low: the ratio of premiums to GDP is 0.4%, the ratio of owned capital to GDP - 0.73%, and the ratio of assets to GDP - 1.46%.

Insurance premiums and claims The growth dynamics of gross written premiums resumed in 2010 after two years of decline during the crisis years, 2008-2009. Every year since 2010 the increase of premiums has represented 17-20% (Figure 2). For example, as of July 1, 2013 the amount of premiums

0 2007

2008

Assets

2009

2010

2011

Insurance reserves

2012

1H 2013

Owned capital

Basic macroeconomic & insurance indicators

2008

2009

2010

2011

2012

KZT billion(1)

16,268

17,008

21,815

26,847

29,288

GDP, current prices GDP per capita, current prices

EUR billion

(4)

KZT(1) EUR(4)

112

140

147

1,044,724

1,078,032

1,360,399

1,641,348

1,755,488

6,113

5,065

6,968

8,561

8,812

6.63

6.58

5.78

5.40

15.57

15.78

16.04

16.36

16.68

Unemployment rate

% of total labor force

Population

Millions

KZT/EUR exchange rate

end of the priod

170.89

212.84

195.23

191.72

199.22

Gross written premiums (on insurance and reinsurance contracts, summed)

KZT million(3)

150,011

132,476

153,497

198,503

237,143

EUR million(4)

878

622

786

1,035

1,190

Number of insurance organizations

units

(3)

units

(3)

Number of insurance brokers

units

(3)

Number of actuaries

units

(3)

Insurance penetration degree

% in GDP(4)

0.92

0.78

0.70

0.74

0.81

Insurance density

EUR/capita(4)

56.4

39.5

49.0

63.3

71.3

of which, life insurers

(1) (2)

(1)

Sources: International Monetary Fund, World Economic Outlook Database, April 2013(1), The National Bank of Kazakhstan(2), The Committee for the Control and Supervision of the Financial Market and Financial Organizations of the National Bank of the Republic of Kazakhstan(3) Note: XPRIMM calculations(4) www.allinsurance.kz

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KAZAKHSTAN - INSURANCE MARKET

GDP and insurance penetration degree

GWP and insurance density

0.92

9,500

0.95

9,000

8,812

8,561

0.90 0.85

8,500 8,000

0.80

0.81

7,500

0.78

6,968

6,500

0.74

0.60

5,500

0.55 5,065

5,000 2008

2009

2011

211.50

175.50

68.10

2010

43.10

25.20

27.76

2009

2011

2012

Insurance claims

Insurance premiums

36.7 40.3

40.5

43.6

49.6 25.1

30.5

53.7 19.4

64.0

74.4

The structure of the insurance portfolio in the insurance classes (share in %)

14.0

26.9

25.3

25.9

23.0

16.5

10.7

22.0

14.9

43.1

60 40

2006

2008

2009

2010

2011

2012

1H 2013

Compulsory insurance

Voluntary personal insurance

65.0

55.0

49.0

50.0 45.0 40.0

39.5 700

786

35.0 30.0

622

25.0

600 2009 GWP (EUR million)

139.90

113.29

133.49

147.34 49.18

120.27 14.29

55.89

2008

70.0

60.0

1,035

878

75.0

2010

2011

2012

Ins. density (EUR/capita)

received under direct insurance contracts amounted to KZT 138,252.1 million, which was 38.9% more than in 2012.

200

2007

56.4

800

Ins. penetration degree (% in GDP)

63.3

2008

250

100

900

2012

The dynamics of insurance premiums and claims

2006

1,000

0.50 2010

GDP, current prices (EUR billion)

71.3

0.65

6,000

100

1,100

0.70

6,113

150

1,190

0.75

0.70

7,000

1,200

Voluntary property insurance

In the structure of the total insurance portfolio the tendency planned increased significantly the proportion of voluntary property insurance and the reduction of shares of other classes of insurance. Since 2006, the proportion of voluntary property insurance in 2012 decreased by almost half (from 74.4% to 36.7%), while the share of voluntary property insurance increased by more than 4 times (from 10.7% to 40.3%). At the same time, for the last 6 years, the share of compulsory insurance did not exceed the threshold of 27%. Claims paid by insurance companies also show a significant trend. In 2012, the volume of insurance-paid claims compared with 2010 increased 2.7 times. In 2012, the share of insurance claims in the amount of insurance premiums accounted for 32.2%. The rapid development of the classes of voluntary personal insurance since 2010 due to the introduction of legislation in respect of retirement annuities, whose share in the total volume of voluntary personal insurance as of July 1, 2013 was up to 33.8%. In addition, in 2011, there was a significant revival of the consumer credit market, which led to a concomitant increase in the credit of life insurance from an accident. If in 2012 the class of accident insurance showed the highest growth (most of it is provided by borrower’s insurance), in 2013 insurers shifted to borrower’s life insurance. In the structure of voluntary personal insurance on July 1, 2013 the percentage of life insurance is 22.4% and that of accident insurance - 14.3%. Despite the fact that the classes of voluntary personal insurance are showing a good evolution, the situation may soon change seriously. On 1 July 2013 a time limit (without specifying a termination date for this restriction) was introduced on annuity contracts in connection with the reorganization of Kazakhstan’s pension system. In addition, the growing risks in the banking system, with the growth of the portfolio of unsecured (consumer) loans can bring about a serious decline in both lending and borrower’s insurance. Also, the growth of “bad loans” may have a negative impact on the volume of claims for insured financial risks, which increased to 265.5% as of July 1, 2013 compared with the same period last year. Compulsory insurance classes show a stable annual growth dynamics at the level of 20-25%. But the most significant contribution to this growth was provided by two classes - the mandatory liability insurance of car owners (share in the total

KAZAKHSTAN - INSURANCE MARKET

Income and expenses 2012

2011

EUR m

KZT m

Share (%)

EUR m

KZT m

Share (%)

Income from insurance activities

836

166,625

86.1

655

125,661

87.0

Income from investment activities

130

25,956

13.4

18,220

12.6

956

0.5

595

0.4

Total income

971

193,537

100.0

754

144,476

100.0

Net expenses related with insurance claims

308

61,323

39.1

183

35,020

33.4

Income from other activities

Other expenses

479

95,518

60.9

364

69,786

66.6

Total expenses

787

156,840

100.0

547

104,806

100.0

Net profit/loss before income tax

184

36,696

207

39,669

Expenses related with corporate income tax

4,568

5,169

Total net profit/loss after taxes

161

32,128

180

34,500

Structure of assets 2012

2011

EUR m

KZT m

Share (%)

EUR m

KZT m

Share (%)

11,923

2.7

127

24,358

6.3

Deposits placed

528

105,221

23.8

480

92,002

23.7

Securities

1,153

229,721

51.9

951

182,268

47.0

Reverse REPO

3,097

0.7

9,693

2.5

Insurance premiums from insurers and brokers

108

21,521

4.9

108

20,698

5.3

Cash

Fixed assets

8,444

1.9

8,255

2.1

Reinsurance assets

219

43,724

9.9

171

32,828

8.5

Other receivables

10,548

2.4

10,884

2.8

Other assets

8,449

1.8

6,687

1.8

Total assets

2,222

442,648

100.0

2,022

387,672

100.0

Investment portfolio structure 2012 EUR m

2011

KZT m

Share (%)

EUR m

KZT m

Share (%)

Government securities

313

62,383

18.5

256

49,057

17.3

Deposits with TTBs

528

105,221

31.1

480

92,002

32.4

Non-government securities of RK issuers

683

135,985

40.2

525

100,747

35.5

Reverse REPOs

3,097

0.9

9,693

3.4

Other financial instruments

157

31,352

9.3

169

32,464

11.4

1,697

338,039

100.0

1,481

283,962

100.0

Total

1 EUR = 199.22 Tenge - KZT (December 31st 2012)

1 EUR = 191.72 Tenge - KZT (December 31st 2011)

premiums on the market - 16.5% on 1 July 2013) and compulsory insurance against accidents (share in the total premiums on the market - 3, 8% on July 1, 2013).

At the moment, some of the ministries of the Republic of Kazakhstan are considering legislation that provides for the introduction of voluntary insurance in the form of compulsory subjects for a number of industries: in agriculture, construction and health care. Also, there are discussions about the introduction of compulsory property insurance of citizens against catastrophic risks. According to the insurers, the implementation of these bills could give a new impetus to the development of the insurance market in Kazakhstan.

For other classes of compulsory insurance (for the most part are classes of liability insurance), their share does not exceed 7% and according to the regulator, they â&#x20AC;&#x153;are ineffective because of the insignificant volume of insurable risks and inadequate tariffs.â&#x20AC;? Presently, inefficient classes of compulsory insurance are considered for upgrade by being transferred into a voluntary form of insurance on a compulsory basis. www.allinsurance.kz

Special Issue

KAZAKHSTAN - INSURANCE MARKET

FY 2012 - Consolidated insurance portfolio

FY2012 market results

EUR 1.19 b

Life insurance (v) Annuity (v) Accidents (v) Sickness (v) Motor Hull (v) CARGO (v) Property (v) GTPL (v) Financial losses (v) MTPL (c ) Worker against accidents (c) Others (c )+(v)

6.34% 15.78% 7.67% 6.98% 2.84% 1.91% 19.75% 5.10% 5.99% 11.78% 10.94% 4.93%

(V) - Voluntary insurance; (M) - Mandatory insurances

Market porfolio as of December 31st, 2012* GROSS WRITTEN PREMIUMS Business line

2012 EUR m

TOTAL MARKET TOTAL LIFE

KZT m

Nominal change (%)

2011 EUR m

KZT m

Weight in all GWP

PAID CLAIMS 2012

2011

KZT m

EUR m

KZT m

Nominal change (%)

2012

2011

in EUR

in KZT

EUR m

in EUR

in KZT

1,190.36 237,143.23 1,035.38 198,503.34 14.97

19.47

379.97 75,697.24 240.66 46,139.25 57.89

64.06

100.00 100.00

72.06

147.80 29,444.98 73.24 14,041.37 101.81

109.70

22.11

15.35

77.49

84.43

6.34

3.26

263.23

52,440.48

158.98 30,478.83

65.58

Life insurance (v)

75.41

15,023.39

33.76

6,473.35

123.34 132.08

Annuity (v)

187.82

37,417.09

125.21

24,005.48

50.00

55.87

145.54 28,994.03

13,796.86 102.24

110.15

15.78

12.09

927.13 184,702.75 876.41 168,024.51

5.79

9.93

232.17 46,252.27 167.42 32,097.88 38.67

44.10

77.89

84.65

Accidents (v)

91.28

18,185.22

59.86

11,476.64

52.49

58.45

4.44

883.65

2.75

527.84

61.11

67.41

7.67

5.78

Sickness (v)

83.07

16,548.45

64.69

12,402.73

28.40

33.43

54.27

10,811.60

46.95

9,001.20

15.59

20.11

6.98

6.25

Motor Hull (v)

33.81

6,736.36

22.30

4,275.19

51.64

57.57

9.25

1,842.09

7.70

1,476.42

20.07

24.77

2.84

2.15

CARGO (v)

22.68

4,518.16

27.52

5,276.82

-17.60

-14.38

1.83

365.51

2.21

422.89

-16.82

-13.57

1.91

2.66

Property (v)

235.15

46,846.23

242.28

46,450.78

-2.95

0.85

61.35

12,222.54

10.82

2,074.87

466.90

489.07

19.75

23.40

GTPL (v)

60.69

12,091.31

80.38

15,410.05

-24.49

-21.54

9.38

1,868.57

2.59

496.38

262.27

276.44

5.10

7.76

Financial losses (v)

71.36

14,216.67

57.05

10,937.02

25.09

29.99

0.25

49.68

22.42

4,298.02

-98.89

-98.84

5.99

5.51

MTPL (c )

140.17

27,924.46

143.51

27,514.19

-2.33

1.49

46.75

9,312.69

37.41

7,172.21

24.96

29.84

11.78

13.86

Worker against accidents (c)

130.28

25,954.36

117.88

22,600.31

10.52

14.84

35.44

7,059.39

28.32

5,428.76

25.14

30.04

10.94

11.39

Others (c )+(v)

58.64

11,681.54

60.93

11,680.79

-3.76

0.01

9.22

1,836.54

6.26

1,199.29

47.37

53.14

4.93

5.88

TOTAL NON-LIFE

2.26

450.95

1.28 71.96

244.50

(v) - voluntary insurance / (c ) - compulsory insurance * insurance premiums accepted on insurance and reinsurance contracts, summed

Exchange rate for calculations: 1 EUR = 199.22 Tenge - KZT (December 31st, 2012) 1 EUR = 191.72 Tenge - KZT (December 31st, 2011)

Sources: National Bank of Kazakhstan Agency of the Republic of Kazakhstan on Regulation and Supervision of Financial Market and Financial Organizations

KAZAKHSTAN - INSURANCE MARKET

ALL INSURANCE LINES (life and non-life, ADDED-UP) GROSS WRITTEN PREMIUMS

PAID CLAIMS

% in all GWP 2012

2011

1 EURASIA

Nominal Nominal Nominal Nominal change change 2012 2011 change change in EUR in AZN in EUR in AZN EUR m AZN m EUR m AZN m % % EUR m AZN m EUR m AZN m % % 135.94 27,082.15 121.45 23,283.62 11.94 16.31 51.00 10,160.61 20.69 3,966.74 146.50 156.15

% 11.42

% 11.73

2 KASPI Insurance

113.95 22,701.74

43.29

4.18

3 NOMAD Life

92.22 18,371.86

12.55

4 HALYK-KAZAKHINSTRAKH

87.77 17,485.18 126.87

5 NOMAD Insurance

70.75 14,095.48

62.65

12,011.78

6 BTA Life

62.13 12,377.33

22.00

7 PPF Insurance

58.27 11,608.62

28.91

8 KAZKOMMERTS Life

58.09 11,572.25

9 OIL Ins. Company

51.28 10,215.65

10 HALYK Life

No.

Company

2012

2011

8,298.82

163.26

173.55

0.43

84.85

1.71

327.75

-75.08

-74.11

9.57

2,406.57

634.66

663.40

33.80

24,324.25 -30.82

-28.12

28.01

6,733.33

6.03

1,156.09

460.50

482.42

7.75

1.21

5,579.20

24.49

4,696.02

14.33

18.81

7.37

12.25

12.93

17.35

15.28

3,043.46

7.35

1,409.35

107.82

115.95

5.94

6.05

4,217.49

182.43

5,542.14

101.58

193.48

28.57

5,692.18

10.45

2,003.93

173.36

184.05

5.22

2.12

109.46

0.85

168.60

0.50

95.95

69.10

75.71

4.90

2.79

31.99

6,133.76

46.98

9,006.52

81.56

88.66

18.99

3,783.69

12.82

2,457.37

48.18

53.97

4.88

3.09

9.15

13.43

12.50

2,489.75

10.02

1,920.13

24.78

29.67

4.31

50.72 10,104.59

31.01

4.54

5,944.92

63.57

69.97

32.14

6,403.45

15.23

2,919.12

111.10

119.36

4.26

2.99

11 TSESNA GARANT

48.35

9,632.66

12 KAZKOMMERTS-POLICY

41.85

8,336.38

10.42

1,997.69

364.04

382.19

4.09

814.37

0.15

29.01

2,601.80 2,707.49

58.43

11,202.47 -28.39

-25.58

14.71

2,930.52

9.33

1,788.00

13 State Annuity Company

34.22

14 BTA Insurance

32.61

6,817.31

34.17

6,551.73

0.14

4.05

21.49

4,282.04

21.34

4,091.25

6,496.14

22.14

4,244.17

47.30

53.06

12.72

2,533.80

7.10

1,360.69

15 LONDON-ALMATY

24.43

4,866.63

35.67

6,838.39

-31.51

-28.83

5.30

1,055.90

3.05

584.19

16 AMANAT Insurance

23.93

4,768.10

27.12

5,199.91

-11.76

-8.30

4.87

969.27

3.42

17 KAZAKHMYS

23.08

4,598.96

27.28

5,230.60

-15.39

-12.08

7.33

1,460.30

5.05

18 CENTRAS Insurance

17.60

3,505.71

18.14

3,478.76

-3.02

19 VICTORY

16.08

3,203.04

56.24

10,781.40 -71.41

20 ALLIANCE Life

15.70

3,127.40

15.22

2,917.76

21 STANDARD

15.51

3,089.17

11.21

2,148.23

22 CHARTIS Kazakhstan

14.62

2,911.95

19.46

3,730.28

23 KOMMESK-OMIR

14.59

2,907.36

17.28

3,312.98

-15.55

4.06

1.01

63.90

3.52

5.64

0.72

4.66

2.87

3.30

79.20

86.21

2.74

2.14

73.94

80.75

2.05

3.44

656.29

42.13

47.69

2.01

2.62

967.55

45.25

50.93

1.94

2.64

57.73

0.77

5.82

1,159.37

5.79

1,110.59

0.46

4.39

1.48

1.75

-70.29

1.26

251.56

1.35

259.33

-6.65

-2.99

1.35

5.43

7.19

13.69

2,726.87

8.58

1,644.80

59.55

65.79

1.32

1.47

38.39

43.80

2.98

594.28

3.25

622.70

-8.16

-4.56

1.30

1.08

-24.88

-21.94

0.32

63.19

24.08

4,615.75

-98.68

-98.63

1.23

1.88

-12.24

25.94

5,166.95

5.80

1,111.37

347.41

364.92

1.23

1.67

3.15

24 InterTeach

13.80

2,749.53

12.14

2,327.55

13.68

18.13

8.03

1,598.95

7.62

1,460.79

5.34

9.46

1.16

1.17

25 KOMPETENZ

13.14

2,617.35

20.16

3,865.95

-34.85

-32.30

3.39

675.16

2.95

566.22

14.75

19.24

1.10

1.95

26 ALLIANCE-POLICY

12.52

2,493.86

48.29

9,257.89

-74.08

-73.06

9.45

1,882.64

7.81

1,496.58

21.06

25.80

1.05

4.66

27 ALATAU

11.06

2,203.26

11.53

2,210.62

-4.09

-0.33

2.58

513.83

1.77

340.28

45.32

51.00

0.93

1.11

28 ASKO

8.74

1,742.10

9.05

1,734.79

-3.36

0.42

1.99

396.07

1.29

248.00

53.69

59.70

0.73

0.87

29 ARCHIMEDES-KAZAKHSTAN

5.98

1,191.93

3.02

578.41

98.31

106.07

4.51

898.95

3.62

694.65

24.54

29.41

0.50

0.29

30 TransOil

5.69

1,132.63

7.70

1,476.15

-26.16

-23.27

1.66

330.96

1.68

322.10

-1.12

2.75

0.48

0.74

31 GRAIN Ins. Company

5.01

997.32

4.28

820.25

17.01

21.59

3.44

685.15

0.27

51.17

1,188

1,239

0.42

0.41

32 NURPOLICY Ins. Company

3.07

611.21

2.59

497.38

18.26

22.89

1.86

370.15

1.44

276.45

28.85

33.90

0.26

0.25

33 KazExportGarant

2.84

565.16

2.64

506.32

7.42

11.62

0.06

12.52

0.23

44.08

-72.68

-71.61

0.24

0.26

34 TRUST Insurance

2.48

493.84

2.34

448.87

5.88

10.02

0.03

6.68

0.09

17.39

-63.05

-61.60

0.21

0.23

35 SAYA

2.36

469.40

3.67

703.05

-35.75

-33.23

0.90

178.67

1.29

247.54

-30.54

-27.82

0.20

0.35

36 EKO POLICY

11.99

2,299.27

2.99

574.04

1.16

37 TSASO

15.51

2,972.63

0.03

6.01

1.50

TOP 10

781.12 155,614.84 527.70 101,169.87 48.02

53.82

221.56 44,139.11 109.29 20,952.44 102.73

110.66

65.62

50.97

TOTAL

1,190.36237,143.23 1,035.38 198,503.34 14.97

19.47

379.97 75,697.24 240.66 46,139.25 57.89

64.06

100.00

Note: PPF Insurance - former name - „GENERALI Life” KASPI Insurance - former name - „ALMATY International Insurance Group” NOMAD Life - former name - „ASTANA-FINANCE Life” KOMPETENZ - former name - „ALLIANZ Kazakhstan” TSASO - in liquidation procedure EKO POLICY - in liquidation procedure The figures published for ALLIANCE-POLICY for FY2011, represents the added-up value of the results of ALLIANCE-POLICY and PANA Insurance. The two companies merged in October 2011. www.allinsurance.kz

Special Issue

KAZAKHSTAN - INSURANCE MARKET

TOP 10 gross written premiums (EUR m) and market shares (%) in 2012 EURASIA

135.94

KASPI Insurance

113.95

NOMAD Life

92.22

HALYKKAZAKHINSTRAKH NOMAD Insurance

87.77

BTA Life

62.13

PPF Insurance

58.27

KAZKOMMERTS Life

58.09

OIL Ins. Company

51.28

HALYK Life 4.26% OIL Ins. Company 4.31% KAZKOMMERTS Life 4.88% PPF Insurance 4.90% BTA Life 5.22% NOMAD Insurance 5.94% HALYK-KAZAKHINSTRAKH 7.37% NOMAD Life 7.75% KASPI Insurance 9.57% EURASIA 11.42% Other 34.38%

70.75

HALYK Life

EUR 1.19 b

50.72 0

100

120

140

Main financial indicators of of insurance companies as of December 31st, 2012 No.

Company

1 ALATAU 2 ALLIANCE Life 3 ALLIANCE-POLICY 4 AMANAT Insurance 5 ARCHIMEDES-KAZAKHSTAN 6 ASKO 7 BTA Insurance 8 BTA Life 9 CENTRAS Insurance 10 CHARTIS Kazakhstan 11 EURASIA 12 GRAIN Ins. Company 13 HALYK Life 14 HALYK-KAZAKHINSTRAKH 15 InterTeach 16 KASPI Insurance 17 KAZAKHMYS 18 KazExportGarant 19 KAZKOMMERTS Life 20 KAZKOMMERTS-POLICY 21 KOMMESK-OMIR 22 KOMPETENZ 23 LONDON-ALMATY 24 NOMAD Insurance 25 NOMAD Life 26 NURPOLICY Ins. Company 27 OIL Ins. Company 28 PPF Insurance 29 SAYA 30 STANDARD 31 State Annuity Company 32 TransOil 33 TRUST Insurance 34 TSESNA GARANT 35 VICTORY Total

Assets EUR m 13.31 30.99 50.05 29.96 5.82 11.72 148.74 93.45 27.52 13.26 384.57 16.34 54.35 181.80 11.97 126.18 49.75 89.61 39.96 87.81 26.38 23.76 58.51 63.47 71.33 8.80 48.32 28.11 7.62 21.20 76.88 18.75 6.64 37.12 257.86 2,221.90

KZT m 2,651.52 6,174.68 9,971.67 5,969.17 1,159.55 2,333.99 29,632.01 18,617.31 5,482.13 2,641.67 76,614.94 3,255.25 10,827.35 36,218.23 2,384.72 25,137.54 9,911.73 17,852.62 7,960.22 17,493.16 5,254.49 4,734.26 11,655.79 12,644.55 14,209.87 1,753.24 9,625.56 5,599.49 1,518.98 4,222.98 15,316.58 3,734.76 1,323.63 7,394.08 51,369.99 442,647.71

Insurance reserves EUR m 5.98 23.41 13.31 14.30 2.14 4.61 27.64 66.95 10.65 3.19 103.34 4.49 38.29 77.25 3.30 90.11 33.74 2.26 28.70 35.93 12.04 8.05 15.75 39.51 51.07 1.30 28.29 12.25 1.08 10.69 64.72 3.22 1.77 19.75 15.08 874.15

KZT m 1,191.78 4,664.48 2,651.01 2,848.68 426.46 918.98 5,505.76 13,338.59 2,122.02 636.14 20,587.27 893.56 7,627.21 15,388.76 657.72 17,952.24 6,722.33 449.73 5,717.87 7,157.83 2,398.39 1,602.99 3,138.41 7,870.90 10,174.01 258.82 5,635.94 2,441.13 214.23 2,129.71 12,894.02 641.35 352.18 3,934.02 3,003.86 174,148.37

Capital EUR m 7.03 7.16 34.99 11.62 3.44 6.57 112.93 23.46 12.73 9.47 267.49 11.64 13.16 88.13 8.45 29.18 10.20 64.54 8.03 45.50 12.88 11.52 35.76 18.36 15.97 7.31 17.81 12.47 6.26 8.50 11.53 15.32 4.50 15.09 234.32 1,203.33

KZT m 1,400.99 1,425.93 6,969.73 2,315.36 685.34 1,309.03 22,497.46 4,673.49 2,535.29 1,887.44 53,289.75 2,319.27 2,622.18 17,556.46 1,682.51 5,813.91 2,032.64 12,856.81 1,600.27 9,065.36 2,565.31 2,295.79 7,123.39 3,657.71 3,182.47 1,456.05 3,548.84 2,484.58 1,246.67 1,692.53 2,297.55 3,051.61 896.98 3,007.02 46,681.50 239,727.19

Authorized capital EUR m 6.03 10.50 14.54 2.86 4.74 2.29 16.83 2.26 3.55 6.00 231.39 7.01 10.40 23.37 1.81 1.03 3.26 54.91 9.36 1.57 1.51 13.14 7.53 2.03 10.69 4.42 7.53 5.02 4.05 7.52 17.87 6.02 5.07 15.06 2.51 523.67

KZT m 1,200.60 2,091.10 2,896.13 570.00 944.91 455.90 3,352.96 450.00 707.00 1,195.47 46,098.00 1,396.53 2,071.84 4,654.89 360.00 206.00 650.00 10,938.96 1,865.00 312.59 300.00 2,617.52 1,500.00 405.00 2,130.00 880.00 1,500.00 1,000.00 806.00 1,498.00 3,560.30 1,200.00 1,010.21 3,000.00 500.00 104,324.90

Retained income (notcovered loss) EUR m KZT m -0.69 -137.43 -4.98 -991.36 -1.95 -387.67 0.27 54.22 0.18 36.53 1.08 215.75 0.29 58.08 0.48 95.15 0.60 120.08 0.32 63.49 24.78 4,937.08 0.39 77.01 1.60 318.67 14.13 2,814.60 1.14 226.90 16.12 3,212.06 2.05 408.37 4.79 953.71 1.48 294.87 0.47 93.78 0.57 113.87 0.87 173.38 2.57 511.94 15.17 3,022.21 4.42 880.50 -0.39 -76.81 1.35 268.64 4.55 905.62 0.47 94.54 -0.36 -72.01 -0.30 -58.84 3.37 671.59 0.06 11.15 0.19 37.11 22.02 4,387.41 117.13 23,334.18

KAZAKHSTAN - INSURANCE MARKET

1H2013 market results 1H 2013 - Consolidated insurance portfolio

ALL INSURANCE LINES (LIFE AND NON-LIFE, ADDED-UP)

Life insurance (v) Annuity (v) Accidents (v) Sickness (v) Motor Hull (v) CARGO (v) Property (v) GTPL (v) Financial losses (v) MTPL (c ) Worker against accidents (c) Others (c )+(v)

EUR 766 m

Gross written premiums (EUR million)

900

9.06% 16.19% 5.79% 9.34% 2.92% 2.31% 19.16% 6.27% 9.00% 10.28% 4.32% 4.93%

766.45

800 700 598.28

600 485.98

500

465.06

400

355.66

300 200 100

(V) - Voluntary insurance; (M) - Mandatory insurances

1H 2009

1H 2010

1H 2011

1H 2012

1H 2013

Market porfolio as of June 30th, 2013* GROSS WRITTEN PREMIUMS Business line

1H2013 EUR m

KZT m

1H2012 EUR m

KZT m

PAID CLAIMS Nominal change (%)

1H2013

in EUR

in KZT

EUR m

KZT m

1H2012 EUR m

KZT m

Weight in all GWP Nominal change (%) in EUR

1H2013 1H2012

in KZT

TOTAL MARKET

766.45 151,681.37 598.28 112,416.07

28.11

34.93

150.45 29,774.05 174.47 32,783.00 -13.77

-9.18

100.00

TOTAL LIFE

193.52

38,297.38 123.14 23,138.82

57.15

65.51

33.45

-48.98

25.25

20.58

6,620.65

69.06 12,975.57 -51.55

Life insurance (v)

69.42

13,738.99

31.02

5,828.27

123.82

135.73

1.55

305.97

1.04

48.97

56.90

9.06

5.18

Annuity (v)

124.09

24,558.39

92.13

17,310.55

34.70

41.87

31.91

6,314.68

68.02

12,780.56 -53.09

-50.59

16.19

15.40

572.94 113,383.99 475.13 89,277.25

20.58

27.00

117.00 23,153.40 105.41 19,807.44 10.99

16.89

74.75

79.42

Accidents (v)

44.35

8,776.55

51.50

9,677.59

-13.89

-9.31

2.44

482.54

2.24

420.66

8.92

14.71

5.79

8.61

Sickness (v)

71.56

14,160.87

60.70

11,405.76

17.88

24.16

30.33

6,001.56

23.23

4,365.19

30.54

37.49

9.34

10.15

TOTAL NON-LIFE

195.01

Motor Hull (v)

22.41

4,433.95

15.79

2,967.13

41.88

49.44

6.02

1,191.23

4.52

849.99

33.06

40.15

2.92

2.64

CARGO (v)

17.74

3,511.02

13.16

2,472.91

34.80

41.98

1.10

217.55

1.18

220.84

-6.47

-1.49

2.31

2.20

Property (v)

146.84

29,060.14

139.93

26,293.23

4.94

10.52

19.73

3,905.44

25.31

4,755.17

-22.02

-17.87

19.16

23.39

GTPL (v)

48.07

9,512.81

29.93

5,624.69

60.58

69.13

2.32

458.93

2.49

468.13

-6.92

-1.96

6.27

5.00

Financial losses (v)

68.97

13,648.75

19.89

3,738.25

246.66

265.11

2.32

458.34

0.12

21.68

MTPL (c )

78.77

15,588.39

85.76

16,114.50

-8.15

-3.26

26.88

5,320.47

26.66

5,009.07

0.85

6.22

1,907.03 2,013.84

9.00

3.33

10.28

14.33

Worker against accidents (c)

41.15

8,144.11

25.04

4,705.03

64.35

73.09

23.74

4,698.21

17.33

3,256.12

37.00

44.29

5.37

4.19

Others (c )+(v)

33.08

6,547.41

33.41

6,278.17

-0.98

4.29

2.12

419.13

2.34

440.59

-9.68

-4.87

4.32

5.58

(v) - voluntary insurance / (c ) - compulsory insurance *insurance premiums accepted on insurance and reinsurance contracts, summed

Sources: National Bank of Kazakhstan Agency of the Republic of Kazakhstan on Regulation and Supervision of Financial Market and Financial Organizations

Exchange rate for calculations: 1 EUR = 197.90 Tenge - KZT (June 30th, 2013) 1 EUR = 187.90 Tenge - KZT (June 30th, 2012) www.allinsurance.kz

Special Issue

KAZAKHSTAN - INSURANCE MARKET

Total market (life and non-life insurances, added-up) GROSS WRITTEN PREMIUMS Nominal No. Company 1H2013 1H2012 change in EUR EUR m. KZT m. EUR m. KZT m. % 1 KASPI Insurance 97.56 19,306.58 45.15 8,484.49 116.05 2 EURASIA 86.73 17,162.99 100.42 18,869.09 -13.64 3 HALYK-KAZAKHINSTRAKH 77.77 15,391.13 64.96 12,205.55 19.73 4 KAZKOMMERTS Life 49.68 9,831.60 28.19 5,297.42 76.21 5 PPF Insurance 43.08 8,525.88 24.88 4,675.67 73.13 6 HALYK Life 40.72 8,057.96 22.01 4,135.22 85.02 7 NOMAD Insurance 39.00 7,719.00 31.72 5,960.31 22.96 8 TSESNA GARANT 34.25 6,778.00 19.89 3,736.71 72.22 9 NOMAD Life 31.82 6,296.21 31.02 5,829.50 2.55 10 OIL Ins. Company 30.45 6,026.10 28.52 5,359.55 6.76 11 State Annuity Company 25.93 5,131.59 14.36 2,699.02 80.52 12 BTA Life 24.23 4,795.80 24.53 4,609.19 -1.21 13 KAZKOMMERTS-POLICY 20.73 4,102.21 26.74 5,025.36 -22.49 14 AMANAT Insurance 20.57 4,070.83 11.03 2,072.96 86.45 15 BTA Insurance 18.14 3,589.46 23.13 4,345.30 -21.57 16 LONDON-ALMATY 15.31 3,028.93 11.16 2,096.49 37.18 17 STANDARD 13.81 2,733.77 7.48 1,406.30 84.57 18 InterTeach 10.76 2,128.55 7.67 1,441.73 40.18 19 ALLIANCE Life 9.57 1,894.05 5.81 1,091.71 64.73 20 KAZAKHMYS 9.49 1,877.89 1.47 276.20 545.54 21 CENTRAS Insurance 9.44 1,868.98 7.83 1,470.91 20.64 22 KOMPETENZ 9.17 1,815.51 7.37 1,384.16 24.54 23 KOMMESK-OMIR 8.94 1,769.83 9.38 1,762.58 -4.66 24 VICTORY 6.96 1,378.22 3.50 657.05 99.16 25 ALLIANCE-POLICY 5.61 1,109.53 9.83 1,846.42 -42.95 26 ALATAU 5.52 1,092.02 5.06 950.83 9.05 27 CHARTIS Kazakhstan 4.89 967.62 6.33 1,189.99 -22.80 28 ASKO 4.23 837.36 4.78 897.91 -11.46 29 ARCHIMEDES-KAZAKHSTAN 2.75 544.06 3.30 619.24 -16.58 30 TransOil 2.72 537.43 3.18 598.09 -14.68 31 GRAIN Ins. Company 2.35 465.75 1.51 284.46 55.46 32 KazExportGarant 2.11 416.92 1.64 307.30 28.82 33 NURPOLICY Ins. Company 1.19 234.62 2.15 403.47 -44.79 34 TRUST Insurance 0.92 181.41 0.77 145.30 18.54 35 SAYA 0.07 13.59 1.55 291.29 -95.57 36 TSASO -0.06 -10.71 TOP 10 531.05 105,095.44 396.77 74,553.51 33.84 TOP 20 699.59 138,448.52 530.16 99,617.78 31.96 TOTAL 766.45 151,681.37 598.28 112,416.07 28.11

PAID CLAIMS Nominal change 1H2013 in KZT % EUR m. KZT m. 127.55 0.69 136.90 -9.04 25.92 5,130.28 26.10 15.84 3,135.57 85.59 5.48 1,084.66 82.35 1.23 243.87 94.86 10.19 2,015.64 29.51 8.96 1,773.35 81.39 6.87 1,360.18 8.01 8.23 1,629.30 12.44 8.13 1,608.47 90.13 9.06 1,793.08 4.05 5.11 1,010.48 -18.37 5.75 1,137.28 96.38 1.80 356.31 -17.39 3.88 768.80 44.48 1.77 350.80 94.39 4.20 830.49 47.64 3.11 615.30 73.49 2.54 502.04 579.90 3.42 676.63 27.06 2.64 522.33 31.16 1.45 286.69 0.41 2.51 496.72 109.76 0.58 114.36 -39.91 3.05 603.50 14.85 1.57 310.38 -18.69 0.50 98.69 -6.74 1.52 301.37 -12.14 2.25 445.82 -10.14 0.99 196.90 63.73 0.08 15.94 35.67 0.12 24.40 -41.85 0.58 114.21 24.85 0.00 0.83 -95.33 0.42 82.47 40.97 91.55 18,118.23 38.98 132.19 26,159.44 34.93 150.45 29,774.05

1H2012 EUR m. 0.19 25.64 11.78 12.03 0.43 11.85 6.67 1.04 16.40 6.40 11.23 13.55 11.71 2.15 6.67 2.17 1.38 3.56 4.08 2.84 3.65 2.80 2.85 0.83 5.29 1.34 0.22 0.99 2.34 0.87 0.03 0.03 0.93 0.03 0.49 92.44 151.78 174.47

KZT m. 35.61 4,818.10 2,214.22 2,260.64 81.16 2,227.20 1,253.89 195.06 3,080.73 1,203.04 2,109.98 2,545.20 2,200.05 403.57 1,252.44 408.68 260.23 669.47 766.22 534.53 684.93 525.91 536.09 155.82 994.36 251.97 41.30 185.65 440.37 162.98 5.97 6.19 174.38 5.70 91.38 17,369.65 28,520.02 32,783.00

Nominal change in EUR % 265.00 1.10 34.46 -54.44 185.31 -14.07 34.28 562.09 -49.79 26.94 -19.31 -62.30 -50.92 -16.17 -41.72 -18.50 203.01 -12.74 -37.79 20.19 -27.59 -48.24 -12.03 -30.32 -42.37 16.95 126.90 54.13 -3.88 14.71 153.71 274.52 -37.81 -86.12 -14.31 -0.96 -12.91 -13.77

Nominal change in KZT % 284.43 6.48 41.61 -52.02 200.49 -9.50 41.43 597.33 -47.11 33.70 -15.02 -60.30 -48.31 -11.71 -38.62 -14.16 219.14 -8.09 -34.48 26.58 -23.74 -45.49 -7.34 -26.61 -39.31 23.18 138.98 62.33 1.24 20.81 167.21 294.45 -34.50 -85.38 -9.75 4.31 -8.28 -9.18

Market share (%) 1H2013 12.73 11.32 10.15 6.48 5.62 5.31 5.09 4.47 4.15 3.97 3.38 3.16 2.70 2.68 2.37 2.00 1.80 1.40 1.25 1.24 1.23 1.20 1.17 0.91 0.73 0.72 0.64 0.55 0.36 0.35 0.31 0.27 0.15 0.12 0.01 69.29 91.28 100.00

1H2012 7.55 16.79 10.86 4.71 4.16 3.68 5.30 3.32 5.19 4.77 2.40 4.10 4.47 1.84 3.87 1.86 1.25 1.28 0.97 0.25 1.31 1.23 1.57 0.58 1.64 0.85 1.06 0.80 0.55 0.53 0.25 0.27 0.36 0.13 0.26 -0.01 66.32 88.62 100.00

Note: PPF Insurance - former name - „GENERALI Life”; KASPI Insurance - former name - „ALMATY International Insurance Group”; NOMAD Life - former name - „ASTANA-FINANCE Life”; KOMPETENZ former name - „ALLIANZ Kazakhstan”; TSASO - in liquidation procedure

TOP 10 gross written premiums (EUR m) and market shares (%) in 1H 2013 KASPI Insurance

97.56

EURASIA

86.73

HALYKKAZAKHINSTRAKH

77.77

KAZKOMMERTS Life

49.68

PPF Insurance

43.08

HALYK Life

40.72

NOMAD Insurance

39.00

TSESNA GARANT

34.25

NOMAD Life

31.82

OIL Ins. Company

30.45 0

EUR 766 m

100

OIL Ins. Company 3.97% NOMAD Life 4.15% TSESNA GARANT 4.47% NOMAD Insurance 5.09% HALYK Life 5.31% PPF Insurance 5.62% KAZKOMMERTS Life 6.48% HALYK-KAZAKHINSTRAKH 10.15% EURASIA 11.32% KASPI Insurance 12.73% Other 30.71%

KAZAKHSTAN - INSURANCE MARKET

Total life GROSS WRITTEN PREMIUMS No.

Company

1 KAZKOMMERTS Life

PAID CLAIMS

% in the own ins. portfolio

Nominal Nominal 1H2013 1H2012 change change 1H2013 1H2012 in EUR in KZT 1H2013 1H2012 EUR m. KZT m. EUR m. KZT m. % % EUR m. KZT m. EUR m. KZT m. 90.11 86.38 44.77 8,859.27 24.35 4,575.70 83.83 93.62 4.95 979.44 11.89 2,234.10

2 PPF Insurance

92.07

3 HALYK Life

70.11

39.67

7,849.75

17.44 3,277.91 127.37 139.47

0.45

88.80

0.40

75.06

Market Nominal Nominal share (%) change change in EUR in KZT % % 1H2013 1H2012 -58.37 -56.16 23.13 19.78 12.32

18.30

20.50

14.17

87.53

78.54

35.64

7,053.08

17.29 3,247.89 106.19 117.16

9.15

1,810.56 11.63 2,185.37 -21.34 -17.15

18.42

14.04

4 State Annuity Company 97.04

98.58

25.16

4,979.61

14.16 2,660.72

77.70

87.15

8.96

1,772.94 11.14 2,092.52 -19.55 -15.27

13.00

11.50

5 NOMAD Life

77.74

23.09

4,568.63

24.12 4,531.92

-4.28

0.81

3.46

685.22

16.40 3,080.73 -78.88 -77.76

11.93

19.59

72.56

6 BTA Life

69.72

91.76

16.90

3,343.56

22.51 4,229.17

-24.94 -20.94

4.12

815.27

13.53 2,541.73 -69.55 -67.92

8.73

18.28

7 ALLIANCE Life

86.77

56.38

8.30

1,643.48

3.28

153.52 167.01

2.37

468.42

4.08

4.29

2.66

TOTAL

25.25

20.58 193.52 38,297.38 123.14 23,138.82 57.15

615.52

65.51

766.06

-41.94 -38.85

33.45 6,620.65 69.06 12,975.57 -51.55 -48.98 100.00 100.00

Life insurance GROSS WRITTEN PREMIUMS No.

Company

1 PPFInsurance 2 KAZKOMMERTSLife

PAID CLAIMS

% in the own ins. portfolio

Market Nominal Nominal Nominal Nominal share (%) 1H2013 1H2012 change change 1H2013 1H2012 change change in EUR in KZT in EUR in KZT 1H2013 1H2012 EUR m. KZT m. EUR m. KZT m. % % EUR m. KZT m. EUR m. KZT m. % % 1H2013 1H2012 92.01 68.90 39.64 7,845.07 17.15 3,221.72 131.20 143.51 0.41 81.71 0.36 66.91 15.95 22.12 57.10 55.28 49.49

39.08

24.59

4,865.48

11.02 2,070.11 123.16

135.04

0.35

69.15

0.08

14.94

339.43

362.82

35.41

35.52

3 NOMADLife

8.70

0.77

2.77

547.86

0.24

45.04

1,055

1,116

0.01

1.66

3.99

0.77

4 BTALife

8.37

8.42

2.03

401.48

2.07

388.09

-1.78

3.45

0.37

73.85

0.34

63.28

10.82

16.72

2.92

6.66

5 HALYKLife

0.90

2.33

0.37

72.45

0.51

96.39

-28.64

-24.84

0.40

78.25

0.26

49.20

51.01

59.04

0.53

1.65

6 ALLIANCELife

0.30

0.61

0.03

5.75

0.04

6.68

-18.22

-13.87

0.01

1.35

0.00

0.69

85.51

95.38

0.04

0.11

7 StateAnnuityCompany

0.02

0.01

0.00

0.90

0.00

0.25

245.82

264.23

0.01

0.00

TOTAL

9.06

5.18

69.42 13,738.99 31.02 5,828.27 123.82 135.73

1.55

305.97

1.04

195.01

48.97

56.90

100.00 100.00

Annuities GROSS WRITTEN PREMIUMS No.

Company

1 HALYK Life

PAID CLAIMS

% in the own ins. portfolio

Market Nominal Nominal Nominal Nominal share (%) 1H2013 1H2012 change change 1H2013 1H2012 change change in EUR in KZT in EUR in KZT 1H2013 1H2012 EUR m. KZT m. EUR m. KZT m. % % EUR m. KZT m. EUR m. KZT m. % % 1H2013 1H2012 86.63 76.21 35.27 6,980.64 16.77 3,151.50 110.31 121.50 8.75 1,732.32 11.37 2,136.17 -23.00 -18.91 28.42 18.21

2 State Annuity Company 97.02

98.57

25.16

4,978.71

14.16 2,660.47

77.68

87.14

8.96

1,772.94 11.14 2,092.52

-19.55

-15.27

20.27

15.37

3 NOMAD Life

76.97

20.32

4,020.77

23.88 4,486.89

-14.92

-10.39

3.45

683.55

16.40 3,080.73

-78.93

-77.81

16.37

25.92

63.86

4 KAZKOMMERTS Life

40.62

47.30

20.18

3,993.79

13.33 2,505.60

51.34

59.39

4.60

910.29

11.81 2,219.16

-61.05

-58.98

16.26

14.47

5 BTA Life

61.35

83.34

14.87

2,942.08

20.44 3,841.08

-27.28

-23.40

3.75

741.42

13.19 2,478.45

-71.60

-70.09

11.98

22.19

6 ALLIANCE Life

86.47

55.77

8.28

1,637.73

3.24

608.84

155.40

168.99

2.36

467.07

4.07

765.37

-42.06

-38.97

6.67

3.52

7 PPF Insurance

0.05

1.20

0.02

4.68

0.30

56.19

-92.10

-91.68

0.04

7.09

0.04

8.16

-17.45

-13.05

0.02

0.32

TOTAL

16.19

15.40 124.09 24,558.39 92.13 17,310.55 34.70

41.87

31.91 6,314.68 68.02 12,780.56 -53.09

www.allinsurance.kz

-50.59 100.00 100.00

Special Issue

KAZAKHSTAN - INSURANCE MARKET

Total non-life insurance GROSS WRITTEN PREMIUMS No.

Company

1 KASPI Insurance 2 EURASIA 3

HALYKKAZAKHINSTRAKH

PAID CLAIMS

% in the own ins. portfolio

Market Nominal Nominal Nominal Nominal share (%) 1H2013 1H2012 change change 1H2013 1H2012 change change in EUR in KZT in EUR in KZT 1H2013 1H2012 EUR m. KZT m. EUR m. KZT m. % % EUR m. KZT m. EUR m. KZT m. % % 1H2013 1H2012 100.00 100.00 97.56 19,306.58 45.15 8,484.49 116.05 127.55 0.69 136.90 0.19 35.61 265.00 284.43 17.03 9.50 100.00 100.00

86.73

17,162.99 100.42 18,869.09 -13.64

-9.04 25.92

5,130.28

25.64 4,818.10

1.10

6.48

15.14

21.14

100.00 100.00

77.77

15,391.13 64.96 12,205.55

26.10 15.84

3,135.57

11.78 2,214.22

34.46

41.61

13.57

13.67

34.28

41.43

6.81

6.68

195.06 562.09 597.33

5.98

4.19

5.31

6.00

19.73

4 NOMAD Insurance

100.00 100.00

39.00

7,719.00 31.72

5,960.31

22.96

29.51

8.96

1,773.35

6.67 1,253.89

5 TSESNA GARANT

100.00 100.00

34.25

6,778.00 19.89

3,736.71

72.22

81.39

6.87

1,360.18

1.04

6 OIL Ins. Company

100.00 100.00

30.45

6,026.10 28.52

5,359.55

6.76

12.44

8.13

1,608.47

6.40 1,203.04

7 KAZKOMMERTS-POLICY 100.00 100.00

20.73

4,102.21 26.74

5,025.36 -22.49 -18.37

5.75

1,137.28

8 AMANAT Insurance

20.57

4,070.83 11.03

2,072.96

1.80

356.31

9 BTA Insurance

100.00 100.00

86.45

96.38

26.94

33.70

11.71 2,200.05 -50.92 -48.31 2.15

403.57 -16.17 -11.71

3.62

5.63

3.59

2.32

100.00 100.00

18.14

3,589.46 23.13

4,345.30 -21.57 -17.39

3.88

768.80

6.67 1,252.44 -41.72 -38.62

3.17

4.87

10 LONDON-ALMATY

100.00 100.00

15.31

3,028.93 11.16

2,096.49

37.18

44.48

1.77

350.80

2.17

408.68 -18.50 -14.16

2.67

2.35

11 STANDARD

100.00 100.00

13.81

2,733.77

7.48

1,406.30

84.57

94.39

4.20

830.49

1.38

260.23 203.01 219.14

2.41

1.58

1,441.73

40.18

47.64

3.11

615.30

3.56

669.47 -12.74

-8.09

1.88

1.61

276.20 545.54 579.90

3.42

676.63

2.84

534.53

26.58

1.66

0.31

2.64

522.33

3.65

684.93 -27.59 -23.74

1.65

12 InterTeach

100.00 100.00

10.76

2,128.55

7.67

13 KAZAKHMYS

100.00 100.00

9.49

1,877.89

1.47

14 CENTRAS Insurance

100.00 100.00

9.44

1,868.98

7.83

1,470.91

20.64

27.06

20.19

15 KOMPETENZ

100.00 100.00

9.17

1,815.51

7.37

1,384.16

24.54

31.16

1.45

286.69

2.80

525.91 -48.24 -45.49

1.60

1.55

16 KOMMESK-OMIR

100.00 100.00

8.94

1,769.83

9.38

1,762.58

-4.66

0.41

2.51

496.72

2.85

536.09 -12.03

1.56

1.97

1,297.58

26.41

-7.34

17 NOMAD Life

27.44

22.26

8.73

1,727.58

6.91

33.14

4.77

944.09

1.52

1.45

18 BTA Life

30.28

8.24

7.34

1,452.24

2.02

380.03 262.83 282.14

0.99

195.21

0.02

3.47

5,241

5,526

1.28

0.43

19 VICTORY

100.00 100.00

6.96

1,378.22

3.50

657.05

99.16 109.76

0.58

114.36

0.83

155.82 -30.32 -26.61

1.22

0.74

20 ALLIANCE-POLICY

100.00 100.00

5.61

1,109.53

9.83

1,846.42 -42.95 -39.91

3.05

603.50

5.29

994.36 -42.37 -39.31

0.98

2.07

21 ALATAU

100.00 100.00

5.52

1,092.02

5.06

1.57

310.38

1.34

251.97

0.96

1.07

22 HALYK Life

950.83

9.05

14.85

16.95

23.18

12.47

21.46

5.08

1,004.88

4.72

887.33

7.53

13.25

1.04

205.08

0.22

41.84 365.43 390.20

0.89

0.99

9.89

13.62

4.91

972.33

3.84

721.72

27.92

34.72

0.53

105.23

0.14

26.54 276.41 296.45

0.86

0.81

24 CHARTIS Kazakhstan

100.00 100.00

4.89

967.62

6.33

1,189.99 -22.80 -18.69

0.50

98.69

0.22

41.30 126.90 138.98

0.85

1.33

25 ASKO

100.00 100.00

23 KAZKOMMERTS Life

26 PPF Insurance 27

ARCHIMEDESKAZAKHSTAN

28 TransOil

4.23

837.36

4.78

-6.74

1.52

301.37

0.99

185.65

54.13

62.33

0.74

1.01

29.89

3.42

676.13

7.44

1,397.76 -54.07 -51.63

0.78

155.07

0.03

6.09

2,317

2,445

0.60

1.57

100.00 100.00

2.75

544.06

3.30

619.24 -16.58 -12.14

2.25

445.82

2.34

440.37

-3.88

1.24

0.48

0.69

100.00 100.00

2.72

537.43

3.18

598.09 -14.68 -10.14

0.99

196.90

0.87

162.98

14.71

20.81

0.47

0.67

7.93

897.91 -11.46

29 GRAIN Ins. Company

100.00 100.00

2.35

465.75

1.51

284.46

55.46

63.73

0.08

15.94

0.03

5.97 153.71 167.21

0.41

0.32

30 KazExportGarant

100.00 100.00

2.11

416.92

1.64

307.30

28.82

35.67

0.12

24.40

0.03

6.19 274.52 294.45

0.37

0.34

31 ALLIANCE Life

43.62

1.27

250.57

2.53

476.20 -50.04 -47.38

0.17

33.62

0.00

0.16 19,604 20,652

0.22

0.53

NURPOLICY Ins. 32 Company

100.00 100.00

1.19

234.62

2.15

403.47 -44.79 -41.85

0.58

114.21

0.93

174.38 -37.81 -34.50

0.21

0.45

33 TRUST Insurance

100.00 100.00

145.30

34 State Annuity Company 35 SAYA 36 TSASO TOTAL

13.23

0.92

181.41

0.77

24.85

0.00

0.83

0.03

0.16

1.42

0.77

151.99

0.20

38.31 276.70 296.75

0.10

20.14

0.09

17.47

9.50

15.33

0.13

0.04

100.00 100.00

0.07

13.59

1.55

291.29 -95.57 -95.33

0.42

82.47

0.49

91.38 -14.31

-9.75

0.01

0.33

- 100.00

-0.06

-10.71

-0.01

79.42 572.94 113,383.99 475.13 89,277.25

20.58

2.96

74.75

18.54

5.70 -86.12 -85.38

27.00 117.00 23,153.40 105.41 19,807.44

10.99

16.89 100.00 100.00

KAZAKHSTAN - INSURANCE MARKET

Accidents GROSS WRITTEN PREMIUMS No.

Company

1 KASPIInsurance 2 PPFInsurance

PAID CLAIMS

% in the own ins. portfolio

Market Nominal Nominal Nominal Nominal share (%) 1H2013 1H2012 change change 1H2013 1H2012 change change in EUR in KZT in EUR in KZT 1H2013 1H2012 EUR m. KZT m. EUR m. KZT m. % % EUR m. KZT m. EUR m. KZT m. % % 1H2013 1H2012 36.13 77.93 35.24 6,974.79 35.19 6,612.06 0.16 5.49 0.13 25.12 0.07 13.59 75.44 84.78 79.47 68.32 7.93

29.89

3.42

676.13

7.44

1,397.76 -54.07 -51.63 717.10 -61.51 -59.46

3 EURASIA

1.69

3.80

1.47

290.71

3.82

4 BTAInsurance

6.04

0.16

1.10

216.90

0.04

5 HALYKLife

1.23

5.15

0.50

99.26

1.13

6 OILIns.Company

1.63

1.48

0.50

98.09

0.42

7 KAZKOMMERTS-POLICY

2.11

2.58

0.44

86.74

0.69

0.78

155.07

0.03

6.09

2,317

2,445

7.70

14.44

0.71

141.27

1.27

238.52 -43.77 -40.77

3.31

7.41

3,055

0.00

0.12

0.03

5.39 -97.97 -97.86

2.47

0.07

212.96 -55.74 -53.39

0.24

47.40

0.21

1.13

2.20

23.64

0.09

17.57

129.75 -36.52 -33.15

0.04

7.84

10.55

6.88 79.34

2,895 17.39

40.20

11.94

17.89

0.10

18.76 -11.07

-6.34

1.12

0.82

0.16

29.28 -74.58 -73.22

0.99

1.34

8 AMANATInsurance

1.47

1.52

0.30

60.01

0.17

31.51

80.80

90.43

0.06

0.68

0.33

9 NOMADInsurance

0.72

0.55

0.28

55.75

0.17

32.79

61.42

70.01

0.01

2.09

0.00

0.80 148.52 161.75

0.64

0.34

10 TSESNAGARANT

0.77

1.31

0.26

51.88

0.26

49.09

0.35

5.69

0.00

0.02

0.01

2.49 -99.39 -99.36

0.59

0.51

11 LONDON-ALMATY

1.31

1.13

0.20

39.77

0.13

23.66

59.64

68.13

0.01

2.80

0.01

1.06 150.24 163.56

0.45

0.24

HALYK12 KAZAKHINSTRAKH

0.22

0.49

0.17

33.91

0.32

60.20 -46.52 -43.68

0.03

6.54

0.04

7.55 -17.67 -13.29

0.39

0.62

13 VICTORY

2.43

0.40

0.17

33.51

0.01

14 KAZKOMMERTSLife

0.31

0.75

0.15

30.56

0.21

2.62

1,115

1,180

0.00

0.34

0.01

1.67 -80.52 -79.49

0.38

0.03

39.75 -27.01 -23.13

0.03

5.52

0.02

3.56

0.35

0.41

47.23

55.07

15 CHARTISKazakhstan

2.89

2.95

0.14

28.00

0.19

35.15 -24.38 -20.35

0.24

47.68

0.04

7.12 535.80 569.63

0.32

0.36

16 ASKO

2.57

3.44

0.11

21.48

0.16

30.88 -33.94 -30.42

0.06

12.42

0.04

8.03

0.24

0.32

54.66

17 KAZAKHMYS

0.84

4.95

0.08

15.83

0.07

13.66

15.89

0.01

1.49

0.01

2.13 -33.55 -30.01

0.18

0.14

18 CENTRASInsurance

0.71

1.64

0.07

13.24

0.13

24.11 -47.87 -45.09

0.00

0.29

0.02

3.89 -92.86 -92.48

0.15

0.25

NURPOLICYIns. Company

5.45

1.70

0.06

12.79

0.04

86.46

0.00

0.65

0.00

0.05

1,043

1,104

0.15

0.07

0.33

5.38

0.05

9.02

0.40

75.69 -88.69 -88.09

0.00

0.52

0.01

2.46 -80.10

-79.04

0.10

0.78

20 STANDARD

6.86

10.03

46.85

77.04

21 KOMMESK-OMIR

0.51

1.08

0.05

8.98

0.10

19.00 -55.13 -52.74

0.01

1.03

0.00

0.50

93.66 103.97

0.10

0.20

22 KOMPETENZ

0.48

1.20

0.04

8.72

0.09

16.60 -50.10 -47.45

0.02

3.95

0.01

2.20

70.41

79.48

0.10

0.17

23 TransOil

1.22

1.03

0.03

6.56

0.03

6.35

0.00

0.39

0.00

0.76 -52.03 -49.48

0.07

0.06

3.47 -95.59 -95.36

6.17

0.98

24 BTALife

0.13

0.23

0.03

6.36

0.06

10.38 -41.84 -38.75

0.00

0.16

0.02

25 KazExportGarant

1.13

2.28

0.02

4.70

0.04

7.01 -36.36 -32.98

0.07

0.11

0.05

0.07

26 ALLIANCE-POLICY

0.35

0.23

0.02

3.84

0.02

4.21 -13.39

-8.78

0.00

0.20

0.04

27 InterTeach

0.13

0.22

0.01

2.68

0.02

3.17 -19.66 -15.39

0.00

0.05

0.03

28 NOMADLife

0.01

0.00

0.34

0.00

29 TRUSTInsurance

0.02

0.07

0.00

0.03

0.00

0.11 -72.23 -70.75

0.00

30 StateAnnuityCompany

0.00

0.02

0.00

0.06 -63.25 -61.29

0.00

31 ALLIANCELife

0.00

0.02

0.00

0.02

0.00

0.17 -90.39 -89.88

0.00

32 SAYA

-8.37

1.66

-0.01

-1.14

0.03

4.85

0.00

-0.01

0.05

-10.34

2.53

-0.57

-112.93

0.13

24.05

0.01

2.23

0.05

10.33 -79.47 -78.38

-1.29

0.25

5.79

8.61

44.35

8,776.55 51.50 9,677.59 -13.89

-9.31

2.44

482.54

2.24

33 ALATAU TOTAL

www.allinsurance.kz

420.66

8.92

14.71 100.00 100.00

Special Issue

KAZAKHSTAN - INSURANCE MARKET

Sickness GROSS WRITTEN PREMIUMS No.

Company

1 HALYK-KAZAKHINSTRAKH 2 InterTeach 3 EURASIA 4 NOMAD Insurance 5 BTA Insurance 6 OIL Ins. Company 7 ARCHIMEDES-KAZAKHSTAN 8 ALLIANCE-POLICY 9 KAZKOMMERTS-POLICY 10 TSESNA GARANT 11 CENTRAS Insurance 12 AMANAT Insurance 13 STANDARD 14 KOMPETENZ 15 KOMMESK-OMIR 16 TRUST Insurance 17 CHARTIS Kazakhstan 18 KAZAKHMYS 19 SAYA 20 NURPOLICY Ins. Company 21 ASKO 22 HALYK Life 23 VICTORY 24 ALATAU 25 ALLIANCE Life TOTAL

% in the own ins. portfolio 1H2013 32.57 91.44 8.46 13.48 24.33 14.34 100.00 32.44 8.67 4.83 16.02 6.11 7.33 9.64 8.78 77.78 6.63 2.91 119.37 5.69 1.12 0.08 0.03 0.01 9.34

1H2012 29.81 87.81 6.87 16.13 12.48 16.87 100.00 31.10 5.73 3.02 5.21 8.82 6.06 9.98 12.29 57.63 4.50 4.70 21.75 63.20 0.14 0.01 0.36 2.74 10.15

1H2013

1H2012

EUR m. KZT m. EUR m. 25.33 5,012.61 19.36 9.83 1,946.32 6.74 7.34 1,452.25 6.90 5.26 1,040.57 5.12 4.41 873.38 2.89 4.37 863.84 4.81 2.75 544.06 3.30 1.82 359.98 3.06 1.80 355.76 1.53 1.65 327.36 0.60 1.51 299.50 0.41 1.26 248.59 0.97 1.01 200.25 0.45 0.88 174.99 0.74 0.79 155.46 1.15 0.71 141.09 0.45 0.32 64.15 0.28 0.28 54.68 0.07 0.08 16.23 0.34 0.07 13.36 1.36 0.05 9.42 0.01 0.03 6.50 0.00 0.39 0.00 0.00 0.15 0.02 0.16 71.56 14,160.87 60.70

KZT m. 3,638.65 1,265.93 1,296.23 961.29 542.45 904.40 619.24 574.21 288.02 112.66 76.61 182.91 85.20 138.18 216.55 83.74 53.53 12.97 63.35 255.00 1.24 0.10 3.39 29.90 11,405.76

PAID CLAIMS

Nominal Nominal change change 1H2013 1H2012 in EUR in KZT % % EUR m. KZT m. EUR m. KZT m. 30.80 37.76 10.66 2,109.22 6.17 1,160.23 45.98 53.75 2.82 557.85 3.38 634.30 6.37 12.04 4.41 873.27 3.86 724.89 2.78 8.25 2.01 397.02 0.60 113.46 52.87 61.01 1.73 342.89 1.08 202.36 -9.31 -4.48 1.83 361.39 1.50 282.18 -16.58 -12.14 2.25 445.82 2.34 440.37 -40.48 -37.31 1.35 267.29 1.40 263.31 17.28 23.52 0.32 62.68 0.49 91.21 175.88 190.56 0.56 110.85 0.04 8.13 271.18 290.93 0.38 75.23 0.17 32.30 29.04 35.91 0.47 93.20 0.22 41.14 123.15 135.03 0.19 37.44 0.03 4.94 20.24 26.64 0.26 50.57 0.31 58.91 -31.84 -28.21 0.48 95.80 0.62 116.38 59.97 68.48 13.77 19.83 0.09 17.53 0.11 21.57 300.34 321.64 0.08 16.58 0.06 11.93 -75.68 -74.39 0.06 11.50 0.06 11.11 -95.03 -94.76 0.35 68.41 0.77 144.82 622.73 661.20 0.01 1.06 0.01 1.50 0.00 0.37 284.73 305.21 -95.83 -95.61 0.00 0.51 0.03 5.09 0.00 0.16 17.88 24.16 30.33 6,001.56 23.23 4,365.19

Market Nominal Nominal share (%) change change in EUR in KZT % % 1H2013 1H2012 72.61 81.79 35.40 31.90 -16.50 -12.05 13.74 11.10 14.38 20.47 10.26 11.36 232.23 249.91 7.35 8.43 60.88 69.45 6.17 4.76 21.60 28.07 6.10 7.93 -3.88 1.24 3.84 5.43 -3.62 1.51 2.54 5.03 -34.75 -31.27 2.51 2.53 1,194 1,263 2.31 0.99 121.13 132.89 2.11 0.67 115.09 126.54 1.76 1.60 619.43 657.72 1.41 0.75 -18.49 -14.15 1.24 1.21 -21.84 -17.68 1.10 1.90 1.00 0.73 -22.81 -18.71 0.45 0.47 31.91 38.93 0.39 0.11 -1.72 3.51 0.11 0.56 2.24 -55.15 -52.76 0.09 -32.85 -29.28 0.07 0.01 0.05 0.00 0.00 0.00 0.03 2,884 3,043 0.26 30.54 37.49 100.00 100.00

Motor hull GROSS WRITTEN PREMIUMS No.

Company

1 EURASIA 2 KASPI Insurance 3 LONDON-ALMATY 4 OIL Ins. Company 5 TSESNA GARANT 6 NOMAD Insurance 7 HALYK-KAZAKHINSTRAKH 8 BTA Insurance 9 KOMMESK-OMIR 10 CENTRAS Insurance 11 KAZKOMMERTS-POLICY 12 AMANAT Insurance 13 ALLIANCE-POLICY 14 STANDARD 15 ASKO 16 KOMPETENZ 17 TransOil 18 KAZAKHMYS 19 ALATAU 20 VICTORY 21 NURPOLICY Ins. Company 22 InterTeach 23 TRUST Insurance 24 SAYA TOTAL

% in the own ins. portfolio 1H2013 5.57 3.86 18.31 6.43 5.65 4.14 1.36 4.79 8.32 6.92 2.70 2.07 4.52 1.59 4.88 1.60 4.00 1.11 1.67 0.38 1.78 0.07 0.73 -9.86 2.92

1H2012 3.19 0.02 20.93 4.93 8.66 4.54 1.74 3.39 7.71 8.44 2.79 3.05 2.98 2.59 3.97 3.08 2.04 0.56 4.19 0.40 1.98 0.15 0.38 2.23 2.64

1H2013

1H2012

EUR m. KZT m. EUR m. 4.83 955.83 3.20 3.76 744.93 0.01 2.80 554.65 2.33 1.96 387.48 1.41 1.94 383.11 1.72 1.61 319.34 1.44 1.06 209.68 1.13 0.87 171.83 0.78 0.74 147.30 0.72 0.65 129.29 0.66 0.56 110.91 0.75 0.43 84.34 0.34 0.25 50.10 0.29 0.22 43.59 0.19 0.21 40.83 0.19 0.15 29.14 0.23 0.11 21.47 0.07 0.11 20.94 0.01 0.09 18.29 0.21 0.03 5.18 0.01 0.02 4.17 0.04 0.01 1.57 0.01 0.01 1.33 0.00 -0.01 -1.34 0.03 22.41 4,433.95 15.79

KZT m. 601.39 1.97 438.71 264.29 323.65 270.52 212.47 147.49 135.97 124.14 140.11 63.33 54.99 36.41 35.63 42.59 12.22 1.56 39.82 2.60 8.00 2.23 0.56 6.49 2,967.13

PAID CLAIMS

Market Nominal Nominal Nominal Nominal share (%) change change 1H2013 1H2012 change change in EUR in KZT in EUR in KZT % % EUR m. KZT m. EUR m. KZT m. % % 1H2013 1H2012 50.91 58.94 0.74 145.91 0.66 124.38 11.38 17.31 21.56 20.27 35,766 37,675 0.32 63.08 0.00 0.17 36,200 38,132 16.80 0.07 20.04 26.43 0.69 135.85 0.45 84.74 52.22 60.32 12.51 14.79 39.20 46.61 0.68 133.73 0.60 113.15 12.22 18.20 8.74 8.91 12.39 18.37 0.79 155.52 0.12 23.08 539.84 573.90 8.64 10.91 12.08 18.04 0.59 117.35 0.35 65.57 69.93 78.97 7.20 9.12 -6.30 -1.31 0.43 84.23 0.34 63.30 26.34 33.07 4.73 7.16 10.62 16.50 0.23 44.77 0.19 36.45 16.61 22.82 3.88 4.97 2.86 8.33 0.49 96.72 0.44 83.61 9.84 15.68 3.32 4.58 -1.12 4.15 0.39 76.75 0.30 56.72 28.49 35.33 2.92 4.18 -24.84 -20.84 0.15 29.66 0.23 43.98 -35.97 -32.56 2.50 4.72 26.44 33.17 0.14 28.15 0.19 35.13 -23.92 -19.88 1.90 2.13 -13.50 -8.89 0.08 15.18 0.22 40.77 -64.64 -62.76 1.13 1.85 13.68 19.73 0.08 15.41 0.19 36.23 -59.60 -57.45 0.98 1.23 8.80 14.59 0.05 9.41 0.06 11.16 -19.94 -15.68 0.92 1.20 -35.05 -31.59 0.07 13.72 0.05 8.81 47.88 55.75 0.66 1.44 66.80 75.68 0.02 4.35 0.03 6.48 -36.30 -32.91 0.48 0.41 1,178 1,246 0.00 0.17 0.47 0.05 -56.39 -54.07 0.07 13.14 0.04 7.54 65.54 74.35 0.41 1.34 0.09 89.46 99.54 0.00 0.05 0.02 4.68 -98.99 -98.93 0.12 -50.51 -47.87 0.01 2.02 0.00 0.14 1,248 1,320 0.09 0.27 -33.04 -29.48 0.01 2.03 0.04 0.08 127.05 139.14 0.03 0.02 0.02 4.19 0.02 3.77 5.60 11.22 -0.03 0.22 41.88 49.44 6.02 1,191.23 4.52 849.99 33.06 40.15 100.00 100.00

KAZAKHSTAN - INSURANCE MARKET

CARGO GROSS WRITTEN PREMIUMS No.

Company

% in the own ins. portfolio

1H2013

1H2013 1H2012 EUR m. 1 TSESNA GARANT 15.86 18.01 5.43 2 NOMAD Insurance 12.22 2.50 4.77 3 KAZKOMMERTS-POLICY 9.00 8.98 1.87 4 EURASIA 1.16 1.97 1.01 5 OIL Ins. Company 3.04 1.78 0.93 6 LONDON-ALMATY 5.58 9.37 0.85 7 KOMMESK-OMIR 8.26 11.52 0.74 8 GRAIN Ins. Company 17.08 0.40 9 AMANAT Insurance 1.63 1.12 0.34 10 HALYK-KAZAKHINSTRAKH 0.37 0.79 0.29 11 ALATAU 5.24 0.21 0.29 12 CENTRAS Insurance 3.01 3.49 0.28 13 BTA Insurance 1.20 1.09 0.22 14 KOMPETENZ 1.62 2.08 0.15 15 CHARTIS Kazakhstan 1.67 1.19 0.08 16 KazExportGarant 2.03 3.59 0.04 17 ALLIANCE-POLICY 0.55 2.19 0.03 18 ASKO 0.50 0.65 0.02 19 TransOil 0.68 0.38 0.02 20 STANDARD 0.13 0.31 0.02 21 VICTORY 0.23 0.12 0.02 22 TRUST Insurance 1.16 2.08 0.01 23 KAZAKHMYS 0.05 0.00 24 KASPI Insurance 0.00 0.03 0.00 25 NURPOLICY Ins. Company 0.03 0.00 26 InterTeach 0.00 0.01 0.00 27 SAYA -95.81 0.02 -0.07 TOTAL 2.31 2.20 17.74

KZT m. 1,075.23 943.28 369.14 199.74 183.20 169.14 146.16 79.56 66.55 57.55 57.22 56.23 43.20 29.33 16.20 8.48 6.13 4.15 3.65 3.47 3.11 2.10 0.95 0.16 0.08 0.05 -13.03 3,511.02

PAID CLAIMS

Market Nominal Nominal Nominal Nominal share (%) 1H2012 change change 1H2013 1H2012 change change in EUR in KZT in EUR in KZT EUR m. KZT m. % % EUR m. KZT m. EUR m. KZT m. % % 1H2013 1H2012 3.58 673.13 51.66 59.74 - 0.00 0.85 - 30.62 27.22 0.79 149.05 500.90 532.88 0.24 47.17 0.02 4.61 871.02 922.70 26.87 6.03 2.40 451.46 -22.37 -18.23 0.05 9.53 0.04 8.28 9.27 15.08 10.51 18.26 1.97 370.83 -48.86 -46.14 0.15 28.84 0.22 41.77 -34.44 -30.95 5.69 15.00 0.51 95.35 82.42 92.13 0.57 113.57 0.22 41.25 161.43 175.34 5.22 3.86 1.05 196.36 -18.22 -13.87 0.04 7.14 0.11 21.53 -68.53 -66.85 4.82 7.94 1.08 203.03 -31.65 -28.01 0.01 1.83 0.39 74.04 -97.65 -97.53 4.16 8.21 2.27 0.12 23.30 171.19 185.63 - 0.00 0.37 1.90 0.94 0.51 96.14 -43.16 -40.14 0.00 0.18 0.05 8.97 -98.08 -97.98 1.64 3.89 0.01 2.03 2,576 2,719 1.63 0.08 0.27 51.29 4.09 9.63 0.02 4.04 0.04 7.00 -45.23 -42.31 1.60 2.07 0.25 47.57 -13.78 -9.19 0.00 0.22 0.01 1.60 -87.23 -86.55 1.23 1.92 0.15 28.73 -3.06 2.10 0.01 1.66 0.03 4.70 -66.58 -64.80 0.84 1.16 0.08 14.15 8.69 14.48 0.01 1.79 0.02 4.60 -63.02 -61.05 0.46 0.57 0.06 11.03 -26.95 -23.06 0.24 0.45 0.22 40.45 -85.60 -84.84 - 0.00 0.38 0.17 1.64 0.03 5.83 -32.49 -28.89 0.00 0.35 0.00 0.90 -62.98 -61.01 0.12 0.24 0.01 2.26 53.20 61.35 0.10 0.09 0.17 0.02 4.29 -23.21 -19.12 0.00 0.21 0.10 0.00 0.77 281.51 301.81 0.01 1.03 0.09 0.03 0.02 3.03 -34.17 -30.67 0.06 0.12 0.03 0.01 2.68 -94.36 -94.06 0.00 0.11 0.00 0.00 0.11 -59.18 -57.01 0.00 0.00 0.00 0.05 - -0.37 0.00 13.16 2,472.91 34.80 41.98 1.10 217.55 1.18 220.84 -6.47 -1.49 100.00 100.00

Property GROSS WRITTEN PREMIUMS No.

Company

1 EURASIA 2 HALYK-KAZAKHINSTRAKH 3 KAZKOMMERTS-POLICY 4 NOMAD Insurance 5 STANDARD 6 AMANAT Insurance 7 KAZAKHMYS 8 LONDON-ALMATY 9 KASPI Insurance 10 OIL Ins. Company 11 VICTORY 12 BTA Insurance 13 TSESNA GARANT 14 CHARTIS Kazakhstan 15 KOMMESK-OMIR 16 KazExportGarant 17 CENTRAS Insurance 18 KOMPETENZ 19 ASKO 20 GRAIN Ins. Company 21 ALLIANCE-POLICY 22 ALATAU 23 NURPOLICY Ins. Company 24 TransOil 25 TRUST Insurance 26 InterTeach 27 TSASO 28 SAYA TOTAL www.allinsurance.kz

% in the own ins. portfolio 1H2013 73.01 29.80 42.13 19.83 39.94 26.13 51.91 30.00 4.57 13.30 53.96 12.94 6.05 41.71 17.64 42.24 8.76 6.45 5.75 7.65 2.76 2.52 9.50 1.31 0.78 0.06 -21.66 19.16

1H2012 71.54 28.74 58.78 14.06 3.60 18.56 3.48 21.45 6.43 20.70 40.78 12.67 14.72 60.80 12.73 17.75 10.20 7.83 7.04 22.33 6.83 1.56 6.94 1.21 10.82 0.01 100.00 2.61 23.39

1H 2013

1H 2012

EUR m. KZT m. EUR m. KZT m. 63.32 12,530.44 71.84 13,498.69 23.17 4,586.11 18.67 3,507.50 8.73 1,728.19 15.72 2,954.00 7.74 1,530.76 4.46 837.84 5.52 1,091.95 0.27 50.64 5.37 1,063.54 2.05 384.64 4.93 974.85 0.05 9.62 4.59 908.76 2.39 449.67 4.45 881.63 2.91 545.92 4.05 801.66 5.90 1,109.46 3.76 743.70 1.43 267.95 2.35 464.44 2.93 550.76 2.07 410.26 2.93 550.18 2.04 403.62 3.85 723.49 1.58 312.22 1.19 224.30 0.89 176.09 0.29 54.54 0.83 163.75 0.80 150.08 0.59 117.15 0.58 108.43 0.24 48.19 0.34 63.18 0.18 35.62 0.34 63.52 0.15 30.57 0.67 126.03 0.14 27.49 0.08 14.87 0.11 22.28 0.15 28.01 0.04 7.06 0.04 7.21 0.01 1.41 0.08 15.73 0.01 1.37 0.00 0.09 -0.06 -10.71 -0.01 -2.94 0.04 7.61 146.84 29,060.14 139.93 26,293.23

PAID CLAIMS

Nominal Nominal change change 1H 2013 1H 2012 in EUR in KZT % % EUR m. KZT m. EUR m. KZT m. -11.86 -7.17 15.03 2,974.37 13.62 2,558.72 24.14 30.75 1.56 308.33 1.18 221.45 -44.45 -41.50 2.11 417.25 6.02 1,130.44 73.47 82.70 0.02 4.35 0.02 3.81 1,948 2,056 0.01 1.83 0.01 1.75 162.53 176.50 0.10 20.31 0.27 51.67 9,525 10,038 91.88 102.09 0.31 61.79 0.80 149.48 53.33 61.49 0.00 0.60 0.00 0.57 -31.39 -27.74 0.22 43.92 0.26 47.98 163.53 177.55 0.00 0.67 0.00 0.52 -19.93 -15.67 0.19 36.96 0.15 27.40 -29.20 -25.43 0.02 3.05 0.03 5.96 -47.03 -44.21 0.02 4.44 0.04 6.69 32.16 39.19 0.00 0.42 0.00 0.32 206.57 222.89 0.04 7.91 0.03 4.82 3.60 9.11 0.00 0.15 0.99 186.28 2.59 8.05 0.02 4.75 1.85 348.26 -27.59 -23.73 0.00 0.30 0.00 0.17 -46.76 -43.92 0.04 7.33 -76.97 -75.74 0.02 3.07 0.04 8.33 75.58 84.92 -24.48 -20.46 0.02 3.21 -7.03 -2.08 0.00 0.32 0.00 0.06 -91.50 -91.05 1,325 1,401 0.00 0.12 0.00 0.49 4.94 10.52 19.73 3,905.44 25.31 4,755.17

Market Nominal Nominal share (%) change change in EUR in KZT % % 1H2013 1H2012 10.37 16.24 43.12 51.34 32.20 39.23 15.78 13.34 -64.95 -63.09 5.95 11.23 8.24 14.00 5.27 3.19 -0.94 4.33 3.76 0.19 -62.69 -60.70 3.66 1.46 3.35 0.04 -60.75 -58.66 3.13 1.71 -1.25 4.01 3.03 2.08 -13.08 -8.46 2.76 4.22 21.09 27.53 2.56 1.02 28.07 34.88 1.60 2.09 -51.45 -48.87 1.41 2.09 -37.04 -33.69 1.39 2.75 23.13 29.69 1.07 0.85 56.02 64.32 0.61 0.21 -99.92 -99.92 0.56 0.57 -98.71 -98.64 0.40 0.41 72.16 81.33 0.17 0.24 0.24 0.12 -64.99 -63.13 0.11 0.48 0.09 0.06 0.08 0.11 428.76 456.90 0.02 0.03 0.00 0.06 0.00 0.00 -0.04 -76.26 -75.00 -0.01 0.03 -22.02 -17.87 100.00 100.00 Special Issue

KAZAKHSTAN - INSURANCE MARKET

GTPL GROSS WRITTEN PREMIUMS No.

% in the own ins. portfolio

Company

1 AMANAT Insurance 2 KOMPETENZ 3 OIL Ins. Company 4 LONDON-ALMATY 5 TSESNA GARANT 6 KAZKOMMERTS-POLICY 7 HALYK-KAZAKHINSTRAKH 8 NOMAD Insurance 9 ALATAU 10 STANDARD 11 EURASIA 12 BTA Insurance 13 KOMMESK-OMIR 14 CENTRAS Insurance 15 CHARTIS Kazakhstan 16 VICTORY 17 GRAIN Ins. Company 18 ALLIANCE-POLICY 19 TRUST Insurance 20 NURPOLICY Ins. Company 21 InterTeach 22 KazExportGarant 23 ASKO 24 KAZAKHMYS 25 SAYA 26 TransOil 27 KASPI Insurance TOTAL

1H2013 37.35 74.23 20.62 29.80 10.68 15.00 3.28 6.39 43.47 15.43 1.54 7.38 12.37 6.16 10.76 4.89 12.86 4.49 18.40 13.13 1.04 4.48 0.85 0.20 20.11 0.31 6.27

1H2013

1H2012

1H2012 EUR m. KZT m. EUR m. 23.68 7.68 1,520.49 2.61 66.42 6.81 1,347.64 4.89 5.10 6.28 1,242.88 1.46 31.93 4.56 902.71 3.56 10.78 3.66 724.21 2.14 5.14 3.11 615.23 1.37 3.49 2.55 504.26 2.27 4.70 2.49 493.15 1.49 12.86 2.40 474.71 0.65 4.70 2.13 421.94 0.35 2.26 1.34 265.08 2.27 9.97 1.34 264.92 2.30 9.20 1.11 218.97 0.86 13.50 0.58 115.16 1.06 8.00 0.53 104.12 0.51 10.30 0.34 67.38 0.36 2.29 0.30 59.89 0.03 11.35 0.25 49.86 1.12 27.50 0.17 33.37 0.21 4.77 0.16 30.80 0.10 0.64 0.11 22.15 0.05 8.27 0.09 18.68 0.14 0.60 0.04 7.13 0.03 4.28 0.02 3.66 0.06 0.01 2.73 0.81 0.01 1.69 0.03 0.00 0.00 5.00 48.07 9,512.81 29.93

KZT m. 490.95 919.40 273.52 669.34 402.85 258.14 426.40 280.12 122.27 66.09 426.98 433.02 162.09 198.53 95.23 67.68 6.53 209.54 39.96 19.23 9.28 25.42 5.43 11.83 4.84 0.04 5,624.69

PAID CLAIMS

Market Nominal Nominal Nominal Nominal share (%) change change 1H2013 1H2012 change change in EUR in KZT in EUR in KZT % % EUR m. KZT m. EUR m. KZT m. % % 1H2013 1H2012 194.05 209.70 0.16 31.39 0.10 17.88 66.69 75.56 15.98 8.73 39.17 46.58 0.34 67.99 0.03 6.05 967.75 1,024.58 14.17 16.35 331.44 354.40 0.09 18.07 0.01 1.93 789.47 836.81 13.07 4.86 28.05 34.87 0.07 13.26 0.01 1.82 592.69 629.55 9.49 11.90 70.69 79.77 0.04 7.09 0.01 2.66 152.93 166.39 7.61 7.16 126.29 138.33 0.15 28.74 1.52 285.26 -90.44 -89.93 6.47 4.59 12.28 18.26 0.24 46.59 0.05 10.20 333.68 356.76 5.30 7.58 67.15 76.05 0.57 113.61 0.42 78.97 36.59 43.86 5.18 4.98 268.64 288.26 0.15 29.63 0.08 15.48 81.71 91.38 4.99 2.17 506.20 538.46 0.20 39.78 0.04 7.62 395.49 421.86 4.44 1.17 -41.06 -37.92 0.01 2.90 0.07 13.23 -79.19 -78.09 2.79 7.59 -41.91 -38.82 0.02 4.66 0.09 16.27 -72.83 -71.38 2.78 7.70 28.26 35.09 0.01 2.90 0.00 0.82 235.90 253.78 2.30 2.88 -44.92 -41.99 0.02 3.81 0.00 0.21 1,637 1,729 1.21 3.53 3.81 9.34 0.14 27.24 0.00 0.01 369,311 388,971 1.09 1.69 -5.47 -0.44 0.71 1.20 771.31 817.68 0.63 0.12 -77.41 -76.20 0.07 13.18 0.03 4.80 160.72 174.60 0.52 3.73 -20.70 -16.48 0.03 4.80 0.35 0.71 0.34 52.07 60.16 0.32 126.67 138.74 0.00 0.12 0.23 0.16 -30.25 -26.54 0.20 0.45 24.70 31.34 0.07 0.10 -70.61 -69.04 0.00 0.15 0.04 0.21 0.04 7.95 0.03 -66.79 -65.02 0.02 0.09 0.00 60.58 69.13 2.32 458.93 2.49 468.13 -6.92 -1.96 100.00 100.00

Financial losses GROSS WRITTEN PREMIUMS No.

Company

1 KASPI Insurance 2 HALYK-KAZAKHINSTRAKH 3 NOMAD Insurance 4 CHARTIS Kazakhstan 5 OIL Ins. Company 6 BTA Insurance 7 KAZKOMMERTS-POLICY 8 KazExportGarant 9 CENTRAS Insurance 10 KOMMESK-OMIR 11 LONDON-ALMATY 12 EURASIA 13 STANDARD 14 ALATAU 15 KOMPETENZ 16 NURPOLICY Ins. Company 17 ALLIANCE-POLICY 18 AMANAT Insurance 19 TSESNA GARANT TOTAL

% in the own ins. portfolio 1H2013 53.82 10.80 9.19 36.16 3.64 4.08 3.24 3.85 0.59 0.25 0.11 0.01 0.06 0.10 0.04 0.00 -0.05 9.00

1H2012 15.54 12.52 0.07 22.48 2.42 0.00 0.82 18.26 0.10 0.08 0.20 0.00 0.00 18.42 0.12 3.33

1H2013

1H2012

EUR m. KZT m. EUR m. 52.51 10,391.08 7.01 8.40 1,662.64 8.14 3.58 709.15 0.02 1.77 349.85 1.42 1.11 219.42 0.69 0.74 146.54 0.00 0.67 133.08 0.22 0.08 16.05 0.30 0.06 10.99 0.02 4.38 0.01 0.02 3.44 0.01 0.01 2.07 0.01 1.54 0.02 0.01 1.09 0.00 0.74 0.00 0.00 0.00 0.00 2.03 -0.02 -3.32 0.02 68.97 13,648.75 19.89

KZT m. 1,318.07 1,528.63 4.24 267.47 129.95 0.11 41.11 56.10 1.75 1.71 2.85 0.06 0.00 381.84 4.35 3,738.25

PAID CLAIMS

Market Nominal Nominal Nominal Nominal share (%) change change 1H2013 1H2012 change change in EUR in KZT in EUR in KZT % % EUR m. KZT m. EUR m. KZT m. % % 1H2013 1H2012 648.52 688.36 0.00 0.81 0.10 19.34 -96.01 -95.80 76.13 35.26 3.27 8.77 0.31 60.36 0.00 0.29 19,663 20,715 12.18 40.89 15,773 16,617 5.20 0.11 24.19 30.80 0.00 0.02 0.01 1.31 -98.91 -98.85 2.56 7.16 60.32 68.85 1.09 215.11 1.61 3.48 126,388 133,120 0.00 0.73 1.07 0.00 207.35 223.70 0.98 1.10 -72.84 -71.40 0.04 7.70 0.12 1.50 0.08 137.64 150.29 0.00 0.02 0.03 0.05 91.00 101.17 0.03 0.05 0.68 135.00 0.02 -48.82 -46.09 0.00 0.80 0.01 0.08 0.01 1,169 1,236 0.19 38.55 0.01 0.00 0.00 0.00 10.21 -0.02 0.12 246.66 265.11 2.32 458.34 0.12 21.68 1,907.03 2,013.84 100.00 100.00

KAZAKHSTAN - INSURANCE MARKET

Motor TPL GROSS WRITTEN PREMIUMS No.

Company

1 TSESNA GARANT 2 NOMAD Insurance 3 OIL Ins. Company 4 HALYK-KAZAKHINSTRAKH 5 CENTRAS Insurance 6 STANDARD 7 ASKO 8 KOMMESK-OMIR 9 ALATAU 10 KAZKOMMERTS-POLICY 11 AMANAT Insurance 12 BTA Insurance 13 ALLIANCE-POLICY 14 TransOil 15 KASPI Insurance 16 LONDON-ALMATY 17 VICTORY 18 KAZAKHMYS 19 InterTeach 20 NURPOLICY Ins. Company 21 EURASIA 22 KOMPETENZ 23 GRAIN Ins. Company 24 SAYA 25 TRUST Insurance TOTAL

% in the own ins. portfolio 1H2013 52.49 28.68 26.02 5.71 46.23 29.91 76.67 35.51 52.06 13.21 11.76 13.27 42.85 85.77 1.63 6.66 14.18 9.73 6.79 60.13 0.80 2.41 9.36 86.47 0.92 10.28

1H2012 40.82 45.94 28.95 7.42 52.06 66.54 77.10 34.23 69.19 12.10 17.96 53.83 39.04 89.45 0.05 8.02 32.55 57.51 10.84 19.85 0.91 2.76 17.60 41.87 0.44 14.33

1H2013

1H2012

EUR m. KZT m. 17.98 3,557.86 11.19 2,213.86 7.92 1,567.77 4.44 878.12 4.37 863.97 4.13 817.63 3.24 641.96 3.18 628.38 2.87 568.46 2.74 542.02 2.42 478.61 2.41 476.33 2.40 475.47 2.33 460.95 1.59 313.99 1.02 201.78 0.99 195.43 0.92 182.73 0.73 144.52 0.71 141.07 0.69 136.65 0.22 43.82 0.22 43.61 0.06 11.76 0.01 1.66 78.77 15,588.39

EUR m. 8.12 14.57 8.26 4.82 4.08 4.98 3.68 3.21 3.50 3.24 1.98 12.45 3.84 2.85 0.02 0.89 1.14 0.85 0.83 0.43 0.91 0.20 0.27 0.65 0.00 85.76

KZT m. 1,525.42 2,738.15 1,551.48 905.36 765.70 935.70 692.31 603.25 657.84 608.23 372.21 2,338.88 720.80 535.01 4.57 168.05 213.89 158.85 156.21 80.08 171.67 38.19 50.06 121.97 0.64 16,114.50

PAID CLAIMS

Nominal Nominal change change 1H2013 1H2012 in EUR in KZT % % EUR m. KZT m. EUR m. KZT m. 121.45 133.24 5.24 1,036.28 0.74 138.12 -23.23 -19.15 4.96 981.33 4.31 809.45 -4.06 1.05 2.53 500.23 2.64 496.84 -7.91 -3.01 1.27 250.93 1.23 230.28 7.13 12.83 1.77 350.33 1.77 332.07 -17.03 -12.62 1.56 308.32 0.85 159.04 -11.96 -7.27 1.01 198.99 0.72 134.41 -1.10 4.17 1.07 212.70 1.00 188.83 -17.95 -13.59 1.22 240.93 1.15 215.77 -15.39 -10.89 0.74 147.03 0.89 167.42 22.09 28.59 0.80 157.38 0.96 179.54 -80.66 -79.63 1.06 210.27 3.81 715.83 -37.37 -34.04 0.85 167.29 1.65 309.48 -18.20 -13.84 0.70 139.50 0.75 140.27 6,417.71 6,764.58 0.21 41.21 0.00 0.53 14.01 20.07 0.36 72.00 0.29 55.09 -13.25 -8.63 0.29 57.71 0.29 54.23 9.22 15.04 0.23 45.91 0.22 42.18 -12.16 -7.49 0.28 54.70 0.17 31.05 67.27 76.17 0.20 38.72 0.09 17.56 -24.43 -20.40 0.22 42.78 2.71 508.88 8.97 14.76 0.05 9.72 0.09 16.33 -17.29 -12.88 0.04 8.61 0.03 5.97 -90.85 -90.36 0.24 47.61 0.32 59.91 145.27 158.32 -8.15 -3.26 26.88 5,320.47 26.66 5,009.07

Market Nominal Nominal share (%) change change in EUR in KZT % % 1H2013 1H2012 612.35 650.27 22.82 9.47 15.11 21.23 14.20 16.99 -4.41 0.68 10.06 9.63 3.46 8.97 5.63 5.62 0.17 5.50 5.54 4.75 84.07 93.86 5.25 5.81 40.57 48.05 4.12 4.30 6.95 12.64 4.03 3.74 6.02 11.66 3.65 4.08 -16.62 -12.18 3.48 3.77 -16.77 -12.34 3.07 2.31 -72.11 -70.63 3.06 14.51 -48.68 -45.95 3.05 4.47 -5.57 -0.55 2.96 3.32 7,227.63 7,617.60 2.01 0.03 24.09 30.70 1.29 1.04 1.05 6.43 1.25 1.33 3.35 8.85 1.17 0.99 67.28 76.19 0.93 0.97 0.50 109.38 120.52 0.90 -92.02 -91.59 0.88 1.07 -43.49 -40.48 0.28 0.24 36.99 44.28 0.28 0.31 -24.56 -20.54 0.08 0.76 0.01 0.00 0.85 6.22 100.00 100.00

Insurance of the worker upon accidents GROSS WRITTEN PREMIUMS No.

Company

1 NOMAD Life 2 BTA Life 3 KAZKOMMERTS Life 4 HALYK-KAZAKHINSTRAKH 5 HALYK Life 6 BTA Insurance 7 OIL Ins. Company 8 ALLIANCE Life 9 AMANAT Insurance 10 VICTORY 11 State Annuity Company 12 KAZAKHMYS 13 KazExportGarant 14 STANDARD 15 ALLIANCE-POLICY 16 EURASIA 17 CENTRAS Insurance 18 KOMMESK-OMIR 19 ALATAU 20 KAZKOMMERTS-POLICY 21 TSESNA GARANT 22 KASPI Insurance 23 LONDON-ALMATY 24 ASKO 25 KOMPETENZ 26 SAYA 27 TransOil 28 NOMAD Insurance 29 NURPOLICY Ins. Company TOTAL www.allinsurance.kz

% in the own ins. portfolio 1H2013 27.43 30.15 9.58 6.07 11.16 14.09 6.87 13.23 5.88 17.30 2.96 7.52 23.42 2.12 4.53 0.14 0.50 0.45 0.54 0.02 0.01 -0.00 5.37

1H2012 22.26 8.02 12.87 4.54 16.31 2.49 1.50 40.86 0.03 9.08 1.42 -0.08 18.44 1.25 1.51 0.17 -0.09 -0.31 2.02 -0.85 -0.01 -0.56 -0.05 -0.12 -0.13 -0.03 5.12 -0.04 4.19

1H2013

1H2012

EUR m. KZT m. EUR m. 8.73 1,727.24 6.91 7.31 1,445.88 1.97 4.76 941.78 3.63 4.72 933.98 2.95 4.54 899.12 3.59 2.56 505.81 0.58 2.09 413.97 0.43 1.27 250.56 2.37 1.21 239.35 0.00 1.21 238.49 0.32 0.77 151.96 0.20 0.71 141.28 -0.00 0.49 97.63 0.30 0.29 58.00 0.09 0.25 50.31 0.15 0.12 24.43 0.18 0.05 9.38 -0.01 0.04 7.94 -0.03 0.03 5.85 0.10 0.00 0.72 -0.23 0.00 0.45 -0.00 -0.06 -0.00 -0.01 -0.00 -0.00 1.62 -0.00 -0.01 -0.00 41.15 8,144.11 25.04

KZT m. 1,297.58 369.65 681.97 553.96 674.36 108.10 80.39 446.13 0.59 59.68 38.25 -0.21 56.66 17.57 27.80 33.00 -1.34 -5.48 19.25 -42.66 -0.77 -11.77 -0.43 -1.65 -0.37 -0.16 305.11 -0.17 4,705.03

PAID CLAIMS

Nominal Nominal change change 1H2013 1H2012 in EUR in KZT % % EUR m. KZT m. EUR m. KZT m. 26.39 33.11 4.77 944.09 271.38 291.15 0.99 195.05 31.12 38.10 0.50 99.70 0.12 22.98 60.08 68.60 1.13 223.95 1.69 317.02 26.59 33.33 0.79 157.31 0.01 1.63 344.27 367.91 0.60 117.89 1.30 245.20 388.91 414.93 0.94 186.40 0.96 181.23 -46.68 -43.84 38,747 40,814 0.11 22.06 0.33 62.05 279.40 299.59 0.16 32.52 0.50 94.64 277.25 297.33 0.10 20.14 0.09 17.47 3.09 612.50 2.54 478.13 63.61 72.32 0.03 6.90 0.01 1.37 213.35 230.02 2.15 425.61 0.25 47.68 71.82 80.97 0.64 127.13 1.88 353.76 -29.69 -25.95 2.92 578.02 2.27 426.26 -766.26 -801.72 0.02 3.15 0.34 63.21 -237.47 -244.78 0.43 84.44 0.38 71.42 -71.16 -69.62 0.12 23.69 0.01 2.50 -101.61 -101.69 2.08 410.98 2.32 436.41 0.20 38.99 0.06 10.80 0.01 1.14 0.01 1.40 0.29 57.96 0.51 94.90 0.40 78.41 0.16 29.49 0.48 95.60 0.43 80.17 0.01 2.79 0.08 15.48 0.26 51.81 0.08 14.93 0.50 98.80 0.93 175.02 0.01 1.21 0.04 6.95 64.35 73.09 23.74 4,698.21 17.33 3,256.12

Market Nominal Nominal share (%) change change in EUR in KZT % % 1H2013 1H2012 21.21 27.58 17.75 7.86 311.93 333.85 11.56 14.49 -32.93 -29.36 11.47 11.77 9,052 9,539 11.04 14.33 -54.35 -51.92 6.21 2.30 -2.34 2.85 5.08 1.71 3.08 9.48 -66.25 -64.45 2.94 0.01 -67.37 -65.64 2.93 1.27 9.50 15.33 1.87 0.81 21.63 28.10 1.73 -0.00 378.06 403.50 1.20 1.20 747.58 792.69 0.71 0.37 -65.88 -64.06 0.62 0.59 28.75 35.60 0.30 0.70 -95.27 -95.02 0.12 -0.03 12.25 18.22 0.10 -0.12 800.65 848.58 0.07 0.41 -10.59 -5.83 0.01 -0.91 242.74 260.98 0.01 -22.77 -18.66 -0.02 -42.01 -38.93 -0.25 152.44 165.88 -0.01 13.22 19.25 -0.03 -82.87 -81.95 -0.01 229.61 247.15 -0.00 -46.40 -43.55 6.48 -83.47 -82.59 -0.00 -0.00 37.00 44.29 100.00 100.00 Special Issue

KAZAKHSTAN - INSURANCE MARKET

INSURANCE COMPANIES PORTFOLIOS IN 1H2013 LIFE INSURANCE

No.

Company

1 ALATAU 2 ALLIANCE Life 3 ALLIANCE-POLICY 4 AMANAT Insurance ARCHIMEDES5 KAZAKHSTAN 6 ASKO 7 BTA Insurance 8 BTA Life 9 CENTRAS Insurance CHARTIS 10 Kazakhstan 11 EURASIA GRAIN Ins. 12 Company 13 HALYK Life HALYK14 KAZAKHINSTRAKH 15 InterTeach 16 KASPI Insurance 17 KAZAKHMYS 18 KazExportGarant 19 KAZKOMMERTS Life KAZKOMMERTS20 POLICY 21 KOMMESK-OMIR 22 KOMPETENZ 23 LONDON-ALMATY 24 NOMAD Insurance 25 NOMAD Life NURPOLICY Ins. 26 Company 27 OIL Ins. Company 28 PPF Insurance 29 SAYA 30 STANDARD State Annuity 31 Company 32 TransOil 33 TRUST Insurance 34 TSESNA GARANT 35 VICTORY TOTAL (%) TOTAL (EUR m) TOTAL (KZT m) (V) - Voluntary

NON-LIFE INSURANCE WORKER OTHER ACCIDENTS SICKNESS MOTOR PROPERTY FINACIAL MTPL AGIANST CARGO (V) GTPL (V) NON-LIFE (M) (V) HULL (V) (V) LOSSES (V) (M) ACCIDENTS (M+V) (M)

TOTAL

LIFE (V)

ANNUITY (M)

TOTAL

% 86.77 -

% 0.30 -

% 86.47 -

% 100.00 13.23 100.00 100.00

% -10.34 0.00 0.35 1.47

% 0.01 32.44 6.11

% 1.67 4.52 2.07

% 5.24 0.55 1.63

% 2.52 2.76 26.13

% 43.47 4.49 37.35

% 0.10 -

% 52.06 42.85 11.76

% 0.54 13.23 4.53 5.88

% 4.73 7.51 7.60

100.00

69.72 -

8.37 -

61.35 -

100.00 100.00 30.28 100.00

2.57 6.04 0.13 0.71

1.12 24.33 16.02

4.88 4.79 6.92

0.50 1.20 3.01

5.75 12.94 8.76

0.85 7.38 6.16

4.08 0.59

76.67 13.27 46.23

14.09 30.15 0.50

7.67 11.87 11.10

100.00

2.89

6.63

1.67

41.71

10.76

36.16

0.17

100.00

1.69

8.46

5.57

1.16

73.01

1.54

0.01

0.80

0.14

7.61

100.00

17.08

7.65

12.86

9.36

53.05

87.53

0.90

86.63

12.47

1.23

0.08

11.16

100.00

0.22

32.57

1.36

0.37

29.80

3.28

10.80

5.71

6.07

9.83

90.11

49.49

40.62

100.00 100.00 100.00 100.00 9.89

0.13 36.13 0.84 1.13 0.31

91.44 2.91 -

0.07 3.86 1.11 -

0.00 0.00 0.05 2.03 -

0.06 4.57 51.91 42.24 -

1.04 0.20 4.48 -

53.82 3.85 -

6.79 1.63 9.73 -

7.52 23.42 9.58

0.46 0.00 25.72 22.86 -

100.00

2.11

8.67

2.70

9.00

42.13

15.00

3.24

13.21

0.02

3.91

72.56

8.70

63.86

100.00 100.00 100.00 100.00 27.44

0.51 0.48 1.31 0.72 0.01

8.78 9.64 13.48 -

8.32 1.60 18.31 4.14 -

8.26 1.62 5.58 12.22 -

17.64 6.45 30.00 19.83 -

12.37 74.23 29.80 6.39 -

0.25 0.04 0.11 9.19 -

35.51 2.41 6.66 28.68 -

0.45 27.43

7.91 3.52 8.21 5.35 -

100.00

5.45

5.69

1.78

0.03

9.50

13.13

0.00

60.13

-0.00

4.30

92.07 -

92.01 -

0.05 -

100.00 7.93 100.00 100.00

1.63 7.93 -8.37 0.33

14.34 119.37 7.33

6.43 -9.86 1.59

3.04 -95.81 0.13

13.30 -21.66 39.94

20.62 20.11 15.43

3.64 0.06

26.02 86.47 29.91

6.87 2.12

4.11 9.75 3.16

97.04

0.02

97.02

2.96

0.00

2.96

100.00 1.22 4.00 0.68 1.31 0.31 100.00 0.02 77.78 0.73 1.16 0.78 18.40 100.00 0.77 4.83 5.65 15.86 6.05 10.68 -0.05 100.00 2.43 0.03 0.38 0.23 53.96 4.89 25.25 9.06 16.19 74.75 5.79 9.34 2.92 2.31 19.16 6.27 9.00 193.52 69.42 124.09 572.94 44.35 71.56 22.41 17.74 146.84 48.07 68.97 38,297.38 13,738.99 24,558.39 113,383.99 8,776.55 14,160.87 4,433.95 3,511.02 29,060.14 9,512.81 13,648.75 (M) - Mandatory

85.77 6.71 0.92 0.23 52.49 0.01 3.70 14.18 17.30 6.61 10.28 5.37 4.32 78.77 41.15 33.08 15,588.39 8,144.11 6,547.41

KAZAKHSTAN - INSURANCE MARKET

Main financial indicators of of insurance companies as of June 30th, 2013 No.

Assets

Company

1 ALATAU

EUR m 14.28

Insurance reserves

KZT m 2,825.88

EUR m 5.54

KZT m 1,095.88

Capital EUR m 7.92

Authorized capital

KZT m 1,566.50

EUR m 6.07

KZT m 1,200.60

Retained income (notcovered loss) EUR m 0.91

KZT m 179.77

2 ALLIANCE Life

39.89

7,893.43

32.13

6,358.60

7.43

1,470.52

12.89

2,551.10

-1.36

-268.95

3 ALLIANCE-POLICY

44.68

8,842.17

12.00

2,374.72

31.14

6,161.62

22.31

4,415.81

-3.10

-613.03 -140.40

4 AMANAT Insurance

35.74

7,073.30

21.19

4,192.64

10.86

2,149.03

2.88

570.00

-0.71

5 ARCHIMEDES-KAZAKHSTAN

6.00

1,186.64

2.35

464.52

3.50

693.06

4.73

937.00

0.26

51.39

6 ASKO

12.36

2,445.22

4.72

933.84

7.25

1,435.31

2.48

490.90

0.54

106.96

7 BTA Insurance

152.37

30,154.67

28.55

5,650.15

116.69

23,093.45

16.94

3,352.96

5.41

1,071.21

8 BTA Life

105.73

20,924.89

78.35

15,504.60

24.07

4,763.49

2.27

450.00

0.81

159.33

9 CENTRAS Insurance

28.18

5,576.89

14.13

2,796.10

11.76

2,327.24

3.57

707.00

-0.18

-36.31

10 CHARTIS Kazakhstan

13.48

2,666.76

2.73

541.15

9.92

1,963.36

6.04

1,195.47

0.31

61.78

11 EURASIA

414.84

82,096.41

140.53

27,811.11

265.08

52,460.21

245.73

48,629.16

17.06

3,376.59

12 GRAIN Ins. Company

18.18

3,598.11

3.47

685.85

14.55

2,879.77

7.06

1,396.53

2.88

569.08

13 HALYK Life

83.04

16,433.83

65.10

12,882.50

14.60

2,890.00

10.49

2,076.05

0.64

127.24

14 HALYK-KAZAKHINSTRAKH

216.91

42,926.45

98.40

19,472.67

96.02

19,001.80

23.62

4,674.16

6.54

1,294.44

15 InterTeach

17.82

3,526.30

6.78

1,341.53

10.55

2,088.04

1.82

360.00

2.46

486.30

16 KASPI Insurance

197.24

39,034.18

140.03

27,712.07

53.30

10,547.71

1.04

206.00

37.34

7,389.69

17 KAZAKHMYS

43.26

8,560.46

20.93

4,142.78

17.36

3,435.32

3.28

650.00

5.11

1,011.58

18 KazExportGarant

85.48

16,916.02

2.77

547.87

58.78

11,632.68

55.28

10,938.96

-3.71

-733.57

19 KAZKOMMERTS Life

58.73

11,623.49

45.71

9,046.68

9.44

1,868.56

9.42

1,865.00

1.25

246.74

20 KAZKOMMERTS-POLICY

93.34

18,471.09

38.58

7,634.35

46.06

9,115.04

1.58

312.59

1.10

218.52

21 KOMMESK-OMIR

28.54

5,648.42

13.79

2,728.49

11.71

2,318.37

1.52

300.00

0.18

35.03

22 KOMPETENZ

25.51

5,047.51

10.49

2,075.87

11.17

2,209.97

13.23

2,617.52

-0.55

-109.19

23 LONDON-ALMATY

64.02

12,669.24

19.07

3,773.48

36.55

7,233.59

7.58

1,500.00

2.34

462.52

24 NOMAD Insurance

80.64

15,959.43

47.99

9,496.85

24.76

4,900.04

10.54

2,085.00

1.28

252.91

25 NOMAD Life

77.34

15,305.81

56.28

11,136.98

18.61

3,682.33

10.76

2,130.00

3.48

688.23

26 NURPOLICY Ins. Company

8.48

1,678.35

1.37

271.06

6.84

1,354.51

4.45

880.00

-0.33

-65.06

27 OIL Ins. Company

54.45

10,775.32

33.76

6,681.42

18.68

3,696.31

7.58

1,500.00

0.31

61.80

28 PPF Insurance

37.49

7,419.54

18.81

3,722.09

15.96

3,158.97

5.05

1,000.00

3.33

658.84

29 SAYA

6.54

1,294.48

6.38

1,262.94

4.07

806.00

0.93

183.54

30 STANDARD

26.60

5,264.51

15.32

3,030.86

10.04

1,986.89

10.10

1,998.62

-0.64

-126.65

31 State Annuity Company

112.48

22,259.58

100.05

19,799.90

12.13

2,399.72

17.99

3,560.30

0.86

170.97

32 TransOil

18.30

3,621.09

3.19

631.61

14.64

2,896.63

6.06

1,200.00

0.01

1.46

33 TRUST Insurance

5.97

1,182.30

1.50

295.87

4.40

870.50

5.10

1,010.21

0.10

20.15

34 TSESNA GARANT

46.97

9,294.96

24.74

4,896.94

18.77

3,713.67

18.29

3,620.00

0.06

12.16

35 VICTORY

254.84

50,433.82

23.81

4,712.08

230.08

45,533.25

2.53

500.00

-4.10

-812.31

2,529.71

500,630.51

1,134.12

224,443.08

1,257.00

248,760.38

564.36

111,686.93

80.81

15,992.76

Total

www.allinsurance.kz

Special Issue

KAZAKHSTAN - INSURANCE MARKET

Motor insurance–great achievements and great prospects In the Republic of Kazakhstan civil liability compulsory insurance of vehicle owners (MTPL) was introduced on 1 January 1997. The order and its conditions today are governed by the Law of the Republic of Kazakhstan “On mandatory insurance of civil liability of vehicle owners.” As of 01/01/13, 24 of 28 insurance companies (non-life insurance) operating in Kazakhstan had the license for the implementation of compulsory civil liability insurance of vehicle owners. At present, the number of vehicles in Kazakhstan is about 4 million units and compulsory civil liability insurance of vehicle owners is one of the most popular types of retail insurance. Policyholders for this type of insurance are almost all vehicle owners (80%), so the number of potential customers of insurance companies is quite wide. The fact that the number of insurance organizations that have received licenses for that particular class of insurance and the possibility to cover quite a large number of consumers of insurance services is rather good evidence of its attractiveness and profitability. In addition, the implementation of this type of insurance allows insurance organizations to attract customers also to other types of

The share of claims in GWP 66%

70%

The share of claims in GWP

60% 50% 49% 40%

33%

39%

34%

30% 26%

25%

20%

19% 10%

2005

2006

2007

2008

2009

21% 2010

2011

2012

1H 2013

Evolution of insurance premiums and paid claims on MTPL (KZT million)

15,588

2008

2009

2010

Insurance premiums

Paid claims

2011

2012

5,320

2007

7,172

4,349

8,311

3,375

2006

4,244

2005

3,261

5,770 2,804

5.000

4,839 3,182

10.000

9,313

15.000

17,447

16,868

20.000

20,954

25.000

27,924

27,514

30.000

1H 2013

insurance, such as accident and CASCO voluntary insurance. The collection of premiums for MTPL has always shown a good evolution. Until 2008, the loss ratio for this class had grown up to 90%, as the tariffs established by the legislative acts in the statistics do not take into account the actual losses. Starting 1st January 2008 new tariffs were established, a bonus-malus system was introduced, allowing differentiation of the insurance policy prices depending on the vehicle damage. Since 1st January 2011 a single form of insurance policy and new rules were introduced for its filling up – only online from the United Insurance Database. Despite the fact that practically all of the company’s general insurance is licensed under the class of MTPL, there is a significant concentration. As of July 1st 2013, ten companies collect 79% of premiums, and there are three leading companies: JSC Insurance Company “TSESNAGARANT”, JSC “IC” NOMAD Insurance “,” OIL Insurance Company “- 47%. Neither company in Kazakhstan has a single product in motor insurance; besides the existing system of guarantees through JSC, the “Insurance Payment Guarantee Fund” protects policyholders in the event of default of the insurer. The legislative changes concerning the increased insurance rates are not the only cause of the growth of the insurance premiums. Kazakhstan is a country with a developing economy and for the past few years vehicle-assembling factories have been opened, which naturally led to update the vehicle fleet. The development of the credit system for the purchasing of motor vehicles also plays an important role in the expansion of the country’s fleet, and the development of the car loans is an additional incentive for the development of such areas such as MOTOR HULL insurance. The expansion of the vehicle fleet increases the density of the flow of vehicles in major cities and therefore the risk of accidents. But despite these factors, the proportion of insurance payments on MTPL is slightly rising. Also, this fact has nothing with the accident rate. According to the statistics of insurance companies, less than 40% of all accident cases are reported to police authorities. Most road accidents are settled by the participants themselves, without the involvement of traffic police. This is due to the fact that today there is a rigid enough system of administrative liability, provided for the guilt in traffic accidents. On the one hand, the over-regulated system of obtaining insurance payments hinders insurance fraud, and on the other hand, it does not create a cost-effective environment for policyholders in the small settlement of damages. At present, the average insurance payment for one claim is about USD 2 thousand. In order to simplify the procedure for paying for small losses, in autumn 2013 a law that liberalizes conditions for receiving payments for minor losses will be adopted. On October 31st 2013 17 years of Kazakh MTPL will be celebrated. And despite the constant improvement of the law, through which Kazakhstan has taken the leading position in the CIS MTPL segment under the terms of insurance and at the level of infrastructure development, there are still problems and tasks that are necessary for all members of the compulsory insurance system. Today the Kazakh insurers are discussing a number of issues: 1. The introduction of an electronic policy (rejection of print formats of the insurance contract) - which will lead to a more rapid conclusion of the insurance contract, insurance coverage can be in any place at any time. 2. The issuance of the policy for the vehicle without the driver’s parameters. Any driver can buy the policy (not only the owner of

KAZAKHSTAN - INSURANCE MARKET vehicle). This introduction will help to implement the electronic monitoring of the availability of insurance coverage by means of surveillance cameras located in the cities, and also to avoid situations in which the driver is driving without insurance (not specified in the insurance policy). 3. The exclusion of the requirement regarding the insurance policy validity until the first insurance (accident) case. In order to avoid conflict situations, when committed by accident, the guilt is determined in a few months’ time, and the driver can make more than one accident in the absence of insurance coverage (if guilt is proven by the first accident occurring, the policy is terminated). 4. The use of assessment of damage to property on the basis of replacement costs, excluding amortization; 5. The organization of the electronic flow documents based on the insurance database for direct settlement; The solving of these issues will take the operating MTPL system to a new level and to fully embody the classic formula of “civilized market quality insurance.”

Leaders on MTPL segment in 1H2013 No.

Company

Insurance premiums KZT ths.

Market Share

1 TSESNA Garant JSC

3,557,855

23%

2 NOMAD Insurance JSC

2,213,858

14%

3 OIL Insurance Company JSC

1,567,773

10%

4 HALYK – Kazakhinstrakh

878,124

5 CENTRAS Insurance JSC

863,970

6 STANDARD Insurance JSC

817,626

7 ASKO JSC

641,960

8 КОMMESK-ОMIR JSC

628,378

9 ALATAU JSC

568,457

542,023

15,588,391

79%

10 KAZKOMMERTS-Policy JSC Total on MTPL

The Directorof the Department of control and supervision methodology of the National Bank of the Republic of Kazakhstan, Nurlan ABDRAHMANOV, commented on the questions regarding the introduction of a simplified procedure for the settlement of losses in an accident In Russia, Belarus and Ukraine there is a simplified procedure for the registration of an accident - Amicable agreement. In Kazakhstan there have been discussions around this issue so far. Are insurers and car owners ready to use “Amicable agreement”?

the traffic police, who act as guarantors that the accident will be properly assessed.

In Kazakhstan, the simplified procedure of accidents registration was introduced in 2007. According to this, participants in an accident, by mutual agreement in the assessment of the circumstances of the incident and the amount of damages to property, the estimated size which is not more than 50 MCI - The monthly calculation index (in 2013 - 86 550 KZT), are free to chart the incident and to sign it, by going to the nearest office or division of internal affairs. The procedures and standard forms for the transport accident scheme are established by the Ministry of Internal Affairs.

It should be noted that in Russia the “amicable report” procedure was introduced in 2009. However, to date, this procedure is not very popular in Russia among participants in an accident, who, in most cases, in order to avoid disputes, prefer to wait for the Russian traffic police officers.

The difference in Kazakhstan’s requirements from the procedure of “Amicable agreement” consists of recording an accident with the traffic police authorities. Thus, the simplified procedure for registration of an accident in Kazakhstan is already in force. This simplified procedure for the registration of an accident prescribed by the Law is not widely used. Oftentimes, the participants in accidents, despite minor damages, prefer to wait for the traffic police. This is due to the fact that the majority of participants in accidents do not know how to deal with an accident and what documents they need to prepare, and also to the fact that accidents must be later recorded with the traffic police bodies. Therefore, in order to avoid disputes, participants in an accident prefer to wait for www.allinsurance.kz

Another reason is the insignificance of the amount for which the participants in an accident can use the “amicable report” system. Therefore, many fear that the amount of repair for the vehicle may exceed the limit and the net amount of insurance payments will not cover the repair costs.

Do you plan on further improving the mechanism of Kazakhstan’s “Amicable agreement?” In Kazakhstan, in order to further develop the traffic system, the Ministry of Internal Affairs drafted a bill containing amendments which aim at the introduction of the “Amicable report” procedure. In particular, the draft of law specifies the conditions for the “Amicable agreement” procedure, which increased the amount at which the procedure is applied (up to 100 MCI, in 2013 the sum is 173100 KZT), and also the possibility of recording an accident without the involvement of the traffic police, and its registration with the traffic police. In our opinion, after the introduction of the “amicable agreement” procedure, the participants in an accident will initially be wary of such an order of settlement due to fears related to receiving compensation. Insurance companies can also impeach participants in an accident, for fear of fraud on their part. Therefore, in order to increase

the popularity of this procedure among the participants in an accident, insurance companies need to “get used” to these innovations and we believe that after some time, the participants in accident will start using this mechanism much more actively. In general, we believe that the “Amicable agreement” procedure will have a positive impact on the situation related to the settlement of accidents. Moreover, this procedure will significantly reduce the accident settlement time and will make it faster to get insurance money, and so participants in an accident will not have to wait for the arrival of the traffic police, a law suit, etc.

Will the “amicable agreement” lead to the increase in insurance fraud? We believe that the introduction of the “amicable agreement” procedure will not lead to a significant fraud increase in the field of civil liability compulsory insurance of vehicle owners. Limiting factors in this case are the ability to increase the value of the MTPL insurance policy for the guilt of the insured event, so for accident guilt any other insurance policy will be more expensive. In this case, it does not make sense to engage in fraudulent schemes. Another limiting factor for fraud is the requirements of the draft law, under which the guilty part can use the procedure of “amicable agreement” no more than 1 time per year. Also, in order to avoid fraud, the insurance company provides the right to an independent expert for vehicles involved in the accident, in the event of contradictions regarding the nature and the list of visible damages to vehicles and (or) the circumstances of the injury. Special Issue

KAZAKHSTAN - INSURANCE MARKET

Kazakhstan United Insurance Database

The first and most successful experience of the CIS region About the five-year history of the United Insurance Database talks Vitaliy GARSTEA, General Director, Actuarial Bureau of Statistics. In 2007, along with the introduction of changes and amendments to the governing legislation about the Motor Third Party Liability Insurance (MTPL), the United Insurance Database was created. The first operator of the United Insurance Database was the Actuarial Bureau of Statistics. Since 2008, all information about the concluded MTPL insurance policies has been transmitted to the United Insurance Database. By means of the United Insurance Database were implemented the “bonus-malus” system and the online issuance of an insurance policy. The transition to the issuance of insurance policies by the United Insurance Database significantly increased the level of coverage of vehicle owners with motor liability insurance and reduced the level of fraud. Moreover, the record of accident-free driving through the use of the bonus-malus system has also become very handy because it offers an advantage during the acquisition of insurance policy. Since 2011 the United Insurance Database has started to receive information about contracts of all mandatory insurance classes, and since 2012 – for all voluntary personal insurance classes. The United Insurance Database keeps the statistics of the 25 insurance classes and it’s the most comprehensive database of insurance contracts. Our system can be flexibly tuned. By the choice of the insurer, we can operate in several modes: input of insurance policies in the United Insurance Database and the automatic upload of data into the accounting system of the insurer or, on the contrary - issuance of the insurance policy in the accounting system of the insurer with automatic data transfer to the United Insurance Database. On average, the United Insurance Database receives about 25,000 insurance contracts daily, and the bonus-malus class is calculated based on the more than 10,000 insured people. The customer support received from 200 of 500 complaints from users of the database. There are more than 5,000 users, employees of insurance companies that have access to the United Insurance Database. The future plans are to develop a module for the insured people that will allow accessing the United Insurance Database, where they could see their insurance history and additional services. This will enhance the data quality (due to the additional controls) and satisfaction of consumers of the insurance services, and consequently, increase the credibility of the insurance services. The electronic archive will be used to store electronic copies of the documents in the United Insurance Database required by the insurer at the conclusion of the insurance contracts, which will reduce maintenance time and simplify the process of issuance policy. More so, it will improve data quality in United Insurance Database. Today integration with the external systems is an urgent necessity as well as getting information about identifiers of individuals and entities from the authorities in order to improve the quality control of the data transmitted in the United Insurance Database.

In addition, this project may provide data that are available in the United Insurance Database to the interested authorities (Ministry of Internal Affairs, Ministry of Labor, the Committee of Financial Supervision, etc.) to control the coverage, legitimacy, etc. There is preparation for integration with the e-government. Every citizen of the Republic of Kazakhstan having access to e-government services will be able to access the United Insurance Database to control information about themselves, receipt of reports, etc. Security Officer - a project that we are developing to enhance information security, as well as to improve the transparency of organization activity and confidence of the insurance market participants.

KAZAKHSTAN - INSURANCE MARKET

Guaranteeing insurance claims

A guarantee of confidence of the insurance market Kulbanu MUSAEVA, General Director of JSC Guaranty Fund of the Insurance Payments In 2003, one of the important events on the financial market in Kazakhstan was the creation by the National Bank of Kazakhstan of the Guaranty Fund of the Insurance Payments. The Fund has become the basis of guarantee insurance payments and its main task is to protect the legitimate rights and interests of creditors in case of the forced liquidation (insolvency) of an insurance company - member of the Fund. First of all, the guarantee insurance payment system is designed to protect policy holders on the insurance market. The Fund serves as the final authority for the protection of holders of insurance policies, when, in spite of all the possible supervisory and regulatory arrangements, the insurance company is forced towards liquidation. Currently the guarantee payment of the Fund is covering the following types of insurance: 1. Civil Liability Insurance of Motor Vehicles Owners 2. Civil liability of the carrier before passengers 3. Civil liability of the tour operator and travel agent 4. Retirement annuities (in accordance with the Law “On pension provision in the Republic of Kazakhstan”) 5. Annuity insurance (in accordance with the Law “On mandatory insurance of employees against accidents in the performance of labor (official) duties”) For each type of insurance the Guaranty Fund forms a guarantee reserve through the collection of compulsory contributions from members of the Fund, as a percentage of the amount of insurance premiums. The Fund’s financial sources are used to perform warranty payments and the payment of the insurance portfolio of a liquidated insurance company in the manner and subject to the conditions provided by the legislation of the Republic of Kazakhstan about insurance and insurance activities. The participants of the Fund and the Fund’s shareholders are the 32 insurance companies licensed and have a right to perform the above-mentioned types of insurance. g JSC Insurance Company, ECOPOLICY - in the amount of KZT 242 million to 852 creditors.

During its years of operation, the fund has successfully made payments to the creditors of 5 compulsorily liquidated insurance companies in the amount of KZT 1,121.7 million, including:

Along with this, the priority direction in the social activities of the Fund is to protect the victims, the life and health of the injured in cases where individuals are not identified, hit and ran, being responsible for causing harm to the victim.

g JSC Insurance Company, CURRENCY-TRANSIT POLICY - in the amount of KZT 1.9 million to 14 creditors; g JSC Insurance Company, ALTYN-POLICY - in the amount of KZT 696.2 million to 1,932 creditors; g JSC Insurance Company, NASCO Kazakhstan - in the amount of KZT 8.8 million to 35 creditors;

This additional function is assigned to the Fund starting 1 October 2008. Since that time on, payments amounting to more than KZT 7.1 million have been made to the victims and their relatives.

g JSC PREMIER INSURANCE - in the amount of KZT 165.7 million to 575 creditors.

On 1 January 2013 the total assets of the Fund amounted to KZT 4,598.7 million (USD 30.6 million).

www.allinsurance.kz

Special Issue

KAZAKHSTAN - INSURANCE MARKET

Reinsurance in Kazakhstan a quality change in course In May 2012, the Kazakh authorities have reinforced the conditions for reinsurance ceding of the local companies, the amendments aiming at the calculation base and the rating and minimum capital requirements. Until these changes took place the insurance companies were assigning the risks to lower rating or to unrated reinsurers, while the minimum requirements for capital increase were calculated according to the underwritings volume. According to the new legislative amendments, the calculation formula for capital increases currently depends on the amount of liability assumed under the insurance contract multiplied by the default probability of the reinsurer, according to the calculation of the rating agency Standard & Poor’s. In addition, different approaches are applied to resident and non-resident reinsurers of the Republic of Kazakhstan.

The increase of the minimum capital on the amount of transferred liability, depending on the reinsurer’s rating For non-resident reinsurers of Kazakhstan On the international scale “AA” or higher - 0 %

For resident reinsurers of Kazakhstan On the international scale On the national scale “В” or higher - 0 % “kzВВ” or higher - 0 % Under “В” or is missing Under “kzВВ” or is missing From “А+” to “А-” - 0 % 0.21% 0.21% From “ВВВ+” to “ВВВ-” - 0.21 % MSM * > 1.75 - 0 % MSM > 1.75 - 0 % From “ВВ+” to “ВВ-” - 0.75 % MSM > 1.5 - 0.05 % MSM > 1.5 - 0.05 % From “В+” to “В-” - 3.8 % MSM > 1.25 - 0.1 % MSM > 1.25 - 0.1 % Under “В-” or is missing - 22 % MSM > 1.0 - 0.2 % MSM > 1.0 - 0.2 % MSM > 0.9 - 5 % MSM > 0.9 - 5 % MSM - Minimum Solvency Margin

Despite the fact that at first glance the rates for the calculation were significantly reduced, the change in the calculation basis from premiums to liability has changed the situation radically. For example, the average portfolio that Kazakh insurers ceded to reinsurance was focused on the reinsurers with ratings from “BBB +” to “BBB-”, and for this category the minimum capital requirements increased slightly. But the next step (ratings from “BB +” to “BB-”) implies a significant increase in the capital requirements – by almost a few times. In addition, the share of the risks retained by the insurance companies is calculated on the insurance portfolio, and not for separate insurance contracts and eliminate major risks. In particular, the share of the risks retained by the insurance companies at the end of each financial year must not be less than 40%, while the premiums ceded to non-resident reinsurers must not exceed a 25% share. Thus, according to the regulator, these limits should not restrict insurance companies to determine the amount of reinsurance, separately for each contract. Perhaps by adopting these measures, the supervisory authority is aiming at encouraging insurers to buy higher quality reinsurance services from top rating reinsurers. If we analyze the results of 2012 in comparison with 2011,

KAZAKHSTAN - INSURANCE MARKET

Structure of GWP, ceded to reinsurance by countries, % (darker colour 01.01.2011, lighter colour 01.01.2012) The Russian Federation

29.5

The Republic of Kazakhstan

14.1

11.4 9.3

Germany Ukraine

18.7

21.5

Great Britain

2.5

USA Bermuda Islands

5.2

The Republic of Kazakhstan The Russian Federation

19.7

17.6

Other

Structure of GWP, ceded to reinsurance by countries, % (darker colour 01.01.2012, lighter colour 01.01.2013) 21.9 19.7

5.8

Switzerland

9.6

Ukraine

4.4

USA

3.0 3.7

8.6 4.2

9.6

4.0

4.4 2.3 16.6

Other 01.01.2011

24.1

7.9

Germany

7.9

19.1

14.1

Great Britain

21.9

26.0

11.7

01.01.2012

01.01.2013

risks were reinsured mainly by Russian insurance companies as they have sufficient capacity of aviation risks reinsurance, including reinsurance liability of aircraft owners. Unfortunately, European reinsurers do not intend to accept aviation risks, which are dominated mainly by planes and helicopters made in Russia.

the legislative changes significantly altered the structure of Kazakhstan’s reinsurance. In 2010, the main volume of reinsurance accounted for by the Russian Federation (29.5%), followed by a decrease to 19.7% in 2011 and to 19.1% in 2012. The structure of reinsurance significantly changed in regard to the United Kingdom. If in 2010 the volume of reinsurance in this area was 21.5%, in 2011 it dropped to 14.1%, and in 2012 increased again to 24.1%.

GWP

Thus, it is clear that, with the introduction of the new requirements in reinsurance, the share of high rating insurance has increased significantly. Also, the share of the domestic reinsurance increased steadily from 11.4% in 2010 to 21.9% in 2011, while in 2012 the share of premiums ceded in the country increased to 26%.

Total ceded to reinsurance, including: Non-residents Residents Total accepted for reinsurance from non-residents

However, in accordance with the new legislative amendments, the calculation formula for capital increases now depends on the amount of liability assumed under the insurance contract multiplied by the default probability of the reinsurer. According to the calculation of the rating agency Standard & Poor’s, in spite of the fact that the rate for capital increases for the non-resident reinsurance with ratings not lower than “B-” ranges from 0% to 3.8%, and for the resident reinsurers - from 0% to 5%, the actual increase in capital can be significant, considering the amount of transferred responsibility for reinsurance.

01.01.2012 m KZT %*

01.01.2013 m KZT %*

Growth %

64,822.5

36.9 65,161.7

30.8

0.5

50,619.8 14,202.7

28.8 48,211.8 8.1 16,949.9

22.8 8.0

-4.8 19.3

8,153.9

4.6 10,182.1

4.8

24.9

* as percent under direct insurance contracts

Also, one should take into consideration the fact that many insurance companies in the Republic of Kazakhstan do not have obligatory reinsurance on the international market, respectively, they have limited access to high-quality reinsurance and are forced to use Kazakhstan’s capacity. Based on this, we can conclude that the local content of risk reinsurance is increasing, and so is the accumulation of risks, including catastrophic risk, which is an “alarming” trend.

In order to respect the requirements of the regulator according to the minimum capital and the share of the risks retained by the insurance companies, there is a new trend, that of increase in the share of non-proportional reinsurance, which is leading to a gradual risk accumulation in the country.

However, some positive aspects in this process should be mentioned. In particular, in order to fulfill their potential on the local market and have an active participation in it, insurers are seeking to increase their capitalization, to get the international rankings and they are taking steps to purchase reinsurance from reinsurers with a high rating.

In addition, there is a decrease in the effectiveness of reinsurance, which can be estimated by the share of reinsurers in the insurance payments. With the growth of gross premiums in 2011-2012 to 16.9% and 57.7% of claims, participation of reinsurers in pay damages has decreased from 15.1% in 2011 to 12.2% in 2012. Any significant changes in the rates of reinsurance for Kazakh companies are not observed, given that the global reinsurance market is characterized by excessive capitalization. At the same time, due to the partial closure of access to the Russian market, there are some problems with the placement of the risks associated with aviation. Previously, most of these www.allinsurance.kz

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KAZAKHSTAN - INSURANCE MARKET

Threats and benefits of international integration In connection with the formation of the Customs Union by Russia, Belarus and Kazakhstan, and the declaration of the Common Economic Space, the governments of the member states are working to harmonize legislation. The process will be carried out in two stages: the main phase of the legal harmonization process will be completed by 2015, while the deadline for the full integration of the three insurance markets was settled for 2019. Marina SHIPOVALOVA, General Director, INTERCONSULT Info, Kazakhstan talks about the perspectives which might arise from this market integration for the Kazakh insurance market.

The first priority for foreign insurers is the corporate insurance segment, which has the transparent structure of corporate governance. And I think that entering the World Trade Organization (WTO) opens a barrier for foreign companies. XPRIMM: How do you evaluate this initiative: advantages - disadvantages? Marina SHIPOVALOVA: In fact, the previous entry of foreign insurance companies on the market of Kazakhstan has already taken place, with companies such as ALLIANZ SE and AIG. Using the example of these companies, we can conclude that the most interesting segment is the corporate one, which is obvious. So, the first priority for foreign insurers is the corporate insurance segment, which has the transparent structure of corporate governance. And I think that entering the World Trade Organization (WTO) opens a barrier for foreign companies. The real danger, in my opinion, could be the entering of the bank holdings on the local market, through which insurance companies will develop their business in the retail segment, in particular voluntary insurance.

XPRIMM: Is the Kazakh insurance market ready for potential fundamental changes, in particular the legal framework, the development of common capital requirements, of supervisory procedures, etc.? Marina SHIPOVALOVA: With regard to the legislative framework, Kazakhstan’s regulatory requirements are the most similar to the European standards and the requirements of Solvency compared with all the countries of the Customs Union. And as it has already been said, the best practices of legislative regulation of the participating countries will be accepted as the basis of the legislation of the Customs Union. In such circumstances, the Kazakh insurers will not struggle to adapt to such innovation. One of the main problems that can seriously reduce the number of players on Kazakhstan’s insurance market can be the

Kazakhstan’s regulatory requirements are the most similar to the European standards and the requirements of Solvency compared with all the countries of the Customs Union requirement to increase the capitalization of insurers, as the transition to the principles of Solvency II.

XPRIMM: Does this affect the activity of the local insurance companies? And, is there any possibility of competition from other companies (Russia, Belarus)? Marina SHIPOVALOVA: Today, the main competitive advantage of our closest neighbors - the Russian companies - still remains the capitalization and assessment of insurance risks at a lower cost. As for the insurance companies in Belarus, their participation in the competition for today’s Kazakhstan market is not considered serious. After the mutual markets’ opening and depending on the conditions in which this event is taking place, we can make more accurate forecasts.

KAZAKHSTAN - INSURANCE MARKET

The 7th edition of the International Conference “Insurance in Central Asia”

Competitiveness of local markets in the context of globalization On April 11-12th, in Alma-Ata, Kazakhstan was held the 7th edition of the International Conference “Insurance in Central Asia”. The organizing company was INTERCONSULT Info with the support of the Association of Financiers of Kazakhstan and the active participation of the Association of Insurance Companies of Kazakhstan. The general partner of the conference was the JSC Insurance Company TSESNAGARANT , strategic partner – the Company UNITY Re, special partner – the Eurasian Congress of insurance companies (EKSO), partners KazExportGarant, the Insurance Company BTA Insurance, NSC and NOVELTY. More than 150 representatives of the local and international companies, reinsurers, IT and brokerage firms, members of the supervision authority and international associations discussed current issues of the state and the development of the insurance market.

order to find optimal solutions for an efficient interaction between the insurance markets framework of the Common economic Space (CES). Speakers discussed about the current trends in the global reinsurance market of the Custum Union members in the reinsurance section. A number of topics were devoted to the problems of reinsurers ratings and reinsurance of catastrophic risks as well to the insurance of financial guarantee and liability. A separate topic addressed the issue of competitiveness of reinsurance portfolios in Kazakhstan, Russia and Belarus within the CES and on the international market.

The central topic: “The competitiveness of local insurance markets in the context of globalization: regulation, capitalization of the infrastructure.” was’t an accident. Taking into account the international integration of several countries in the Eurasian Economic Community’s Customs Union, as well as Russia’s and, later on, Kazakhstan’s joining World Trade Organization (WTO), it’s a must to discuss this subject by referring to the globalization context. At the same time, the solutions for an efficient interaction between the members of the Customs Union must be found.

A special section was dedicated to Kazakhstan’s experience of export credit insurance and investments insurance. Within the section dealing with the infrastructure of the insurance market, participants discussed the perspectives to develop information technology to create an efficient system of information security and legal support to the insurance company. Intense discussion was centered around the

opportunities offered by the Kazakh Unified Insurance database. The key event of the second day of the conference was the “round table” on “insurance of catastrophic risk. Is the market ready? .“ On the eve of passing a law on compulsory insurance against catastrophic risk , the discussion between international experts, the Kazakh insurers and representatives of the Ministry of Economy and Budget Planning - the main drafter of the law - allowed to identify the main issues that require some optimal solutions based on the international experience in solving similar problems and realities of the Kazakh market. According to the participants, the conference became a platform for in-depth discussion of the current problems of insurance markets, on the basis of which decisions will be taken for extensive steps to ensure the integration of markets within the Common Economic Space. The 8th international conference will be held in Alma-Ata on 11-12 April 2014.

In close connection with the current realities of the conference, an open dialogue was held between representatives of the professional insurance markets and regulators of the Customs Union on topical issues of crossborder insurance and reinsurance. Also, development issues of compulsory insurance within the infrastructure were discussed in www.allinsurance.kz

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KAZAKHSTAN - INSURANCE MARKET

The Subsidiary of TSESNABANK JSC Insurance Company TSESNA GARANT is a young, promising universal insurance company in Kazakhstan, operates in the market since 2009. The company operates in the market on “general insurance” segment and is licensed by: g 8 types of compulsory insurance g 7 types of voluntary insurance g reinsurance activity

The insurance company TSESNA GARANT has long-term credit rating of counterparty and financial strength rating “B” from the agency Standart & Poor’s (outlook - stable) and rating “kzBB +” on the national scale. MTPL insurance holds the major share in the company’s insurance portfolio. The company also has an extended network of agencies over the country, thus assuring an excellent coverage of the entire Republic. Once achieving the insurance rating, TSESNA is actively entering on corporate insurance market. At the same time, strong financial performance and reliable reinsurance partners allow the insurer to cover important risks.The company has implemented a quality management system ISO 9001:2008 (international certificate).

Financial indicators, KZT thousands Structure Assets Reserves Owned capital Insurance premiums

01.01.2013

01.07.2013

7,628,679 4,017,925 3,103,497 9,619,973

9,294,958 4,896,936 3,713,670 6,777,998

01.01.2013

01.07.2013

36,970,000 19,670,000 15,035,000, 48,164,955

46,474,790 24,454,000 18,568,000 33,889,000

Financial indicators, EUR Structure Assets Reserves Owned capital Insurance premiums

Collected premiums, KZT Business line 1.Property insurance 2. Liability insurance 3. Motor vehicle insurance 4. Cargo 5. Personal 6. MTPL

Management Dauren JAKSYBEK - Chairman of the Management Board Education: 1996 - 2000 – American University, Washington Specialty “International Finance and Marketing”, Bachelor of Business Administration. 2000 - 2002 — New York University, New York, USA. Credit Analysis

01.01.2013

01.07.2013

1,780,890 1,076,185 719,171 1,031,936 361,535 4,337,053

410,259 724,296 383,111 1,075,231 379,246 3,557,855

The Joint Stock Company Subsidiary of “TSESNABANK” Insurance company TSESNA GARANT

Head office: Address: Almaty 050013, 19, Al-Farabi аv., Tel: +7 727 311.13.00/01/03 Fax: +7 727 311.13.02 E-mail: info@tsgarant.kz Website: www.tsgarant.kz

2000 - 2002 – Kazakh State Law Academy, Astana, Specialty “Jurisprudence”, Lawyer. Work experience: From October 5, 2006 - Chairman of the Board of TSESNABANK, Astana 2005-05.10.2006 - Member of the Board of Directors of TSESNABANK, Astana 2003-2005 - Manager of the Financial Trade, Raiffeisen Zentralbank (RZB) AG, Vienna, Austria. 2000-2003 - Loan Officer - Project Finance, RZB Finance LLC, New York, USA. **** Zhanil SMAILOV - Chairman of the Board Vladimir SHEVCHENKO - Deputy Chairman of the Board Aizhan SHUKATAEVA - Director of Finance Tatiana SADVAKASOVA - Managing Director, Member of the Board

KAZAKHSTAN - INSURANCE MARKET

Management Indira Nurmambetova Chairman of the Board g Education: Higher in Economics g Major – Finance and Credit

About company: NOMAD Insurance

Recent Positions held:

“NOMAD Insurance” JSC has been operating in the insurance market since January 2004. The company is licensed to conduct insurance business under 6 compulsory and 17 voluntary types of insurance, as well as to carry out reinsurance activity. “NOMAD Insurance” is one of the leaders in general insurance, including compulsory vehicle owner’s liability insurance. Reinsurance partners are the companies with high financial strength ratings from the leading international rating agency “Standard & Poor’s” as of 2013.01.01: Hannover Re, Germany, “AA-” rating, Munich Re, Germany, “AA-” rating, ACE European Group Ltd, United Kingdom, “AA-” rating’, SCOR Perestrakhovaniye LLC, “A +” rating In March 2013 the Company renewed the Catastrophe Excess of Loss Treaty. The reinsurance program leader is Munich Re. “NOMAD Insurance” is member of the European Business Association of Kazakhstan (EUROBAK), the American Chamber of Commerce in Kazakhstan and holds OHSAS 18001-2008, ISO 14001-2006 certificates of conformity.

g July 2013 – Present: Chairman of the Board of JSC “NOMAD Insurance” Insurance Company g July 2010 – July 2013: Deputy Chairman of the Board for Financal Issues of JSC “NOMAD Insurance” Insurance Company

Irina Rozdina - Deputy Chairman of the Board Farida Ualieva - Deputy Chairman of the Board

Financial trends of JSC “NOMAD Insurance” (KZT bn.) 14.0

12,6

12.0 9,5

10.0 6,0

6.0

Address: 101 Tole Bi street, “Dalich” Business Center, Almaty, 050012, Kazakhstan Tel.: +7(727) 321 20 00; Fax: +7(727) 321 21 23 Email: info@icn.kz Website: http://www.icn.kz http://nomadpolis.kz

1,4

0,3 0,7

2006

1,8 0,7

2007

Total assets

5,6

4,1

3,5

4.0 2.0

9,5 7,9

7,4

8.0

Head office:

www.allinsurance.kz

16,0

16.0

2,7

1,2 1,1

2008

4,1 2,4

1,3

2009

2010

Actuarial reserves

3,2

2011

3,7

2012

4,9

1H 2013

Shareholders’ equity

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KAZAKHSTAN - INSURANCE MARKET

Management Galym AMERKHODZHAEV – Chairman of the Board

About company: BTA Insurance BTA Insurance is one of the three leaders of the insurance market in terms of capital and the fifth largest insurance companies in terms of assets. Today, the company is licensed to conduct insurance business for 25 classes of insurance and reinsurance lines of activity. The regional network operates 17 branches and has points of sale in 24 cities of the Republic of Kazakhstan. The growth rate of gross premiums of BTA Insurance exceeds the market average by far. In 2012, the growth in gross premiums of BTA Insurance was 45.66%, while the market of non-life insurance has increased by 9.93% compared with 2011. The growth of company payments was ahead of the market growth: in 2012, the payment of the company grew by 81% compared with 2011, while the market for the same year grew by 44.1%.

Prior to this position, from 1999 to 2007, he held key positions at the JSC OIL Insurance Company; from 2007 till 2012 he served as Chairman of the State Institute of the JSC Export Credit Insurance Corporation KazExportGarant; since 21.01.2013 - Chairman of the Board at JSC BTA Insurance. *** Erjan ELSHIBAEV – Deputy Chairman of the Board Assel NURGOJAEVA - Deputy Chairman of the Board Raushan SAYBULATOVA – Financial Director Insurance line Motor third party liability Property Insurance of Waterborne Vehicles Railway transport, cargo, aircraft Insurance, civil liability insurance

The actual solvency margin of the company on July 1 2013 was 13,470,593,000 tenge (1 USD = 151.13 tenge). The maximum size of the equity holding company under a separate contract of insurance or reinsurance was 80% of the ASM (actual solvency margin). The company has a mandatory reinsurance contract on the basis of excess of loss on property risks (Risk XL) – a USD 10 million limit. With a focus on major reinsurance protection of their own insurance portfolio, the company BTA Insurance has been cooperating with leading reinsurance companies with high international credit rating: MUNICH Re, PARTNER Reinsurance Europe Plc., HANNOVER Re, SCOR Re, LLOYD’s Syndicate, POLISH Re, BERKSHIRE Hathaway International Insurance Limited.

Net capacity, USD up to 365,000 (KZT 55,000,000 ) up to 2,000,000 (KZT 3,200,000,000) up to 3,600,000 (KZT 550,000,000) up to 16,600,000 (KZT 2,500,000,000)

Head office: Address: The Republic of Kazakhstan, Almaty 050026, 187 Aiteke by str. Phone: + (727) 250.22.22, Fax: +7 (727) 250.14.87 E-mail: info@i-bta.kz, reinsurance@i-bta.kz Website: www.i-bta.kz

KAZAKHSTAN - INSURANCE MARKET

Management Oleg KHANIN – Chairman of the Management Board since June 13, 2013; he was the Deputy Chairman of the Management Board of Business Development since 2009. Prior to joining the company, he worked as Deputy Chairman of the Management Board of JSC ALLIANCE Policy and as Director of the insurance department of KBS Garant.

About KOMMESK-OMIR The Joint Stock Company KOMMESK-OMIR established in November 19, 1991 is the first insurance company of independent Kazakhstan. It is licensed by the first number with the right to practice insurance business in “general insurance” (non-life insurance) for mandatory and voluntary insurance and for the reinsurance activity. More than 20 years of experience in insuring risks of varying complexity, a well-organized system of examination and assessment of damage, the partnerships with local and foreign reinsurance companies allow insurance companies to provide high quality services to improve the classical types of insurance, and to build modern insurance products. The extensive regional network present in 19 major cities across the country allows providing services all over Kazakhstan. In 2009, the company has strengthened its reputation as a reliable business partner providing the financial stability rating B3, the “Stable” outlook from the international rating agency Moody’s Investors Service and in 2013 the company has confirmed this rating. Since June 2007, the company’s shares have been included in the official list of Kazakhstan Stock Exchange. In 2012 more than 229.4 thousand of insurance contracts were concluded. The growth of gross premiums for all contracts was increased by 24%. The positive results have been achieved due the sales growth for voluntary classes. The number of big customers exceeded 200. At the end of 2012, KOMMESK-Omir was included in the top 3 players in terms of payments to insurance companies in Kazakhstan on general insurance (non-life), taking the 3rd place with a market share of 11.2%.

www.allinsurance.kz

Members of the Board Vladimir AKENTIYEV - First Deputy Chairman of the Management Board Elina AKHMEDOVA - Deputy Chairman of the Management Board for Finance Affairs Vadim SLIZKOUKHIY - Managing Director

Head office: Address: Almaty 050000, 19 Nauryzbay Batyr str. Phone: +7(727) 244 74 00; Fax: +7(727) 244 74 13 E-mail: almaty@kommesk-omir.kz Website: www.kommesk.kz

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KAZAKHSTAN - INSURANCE MARKET

Management Gaukhar Kassymkanova Managing Director

About MOI Insurance Broker MOI Insurance Broker, LLP is an independent Kazakhstanian insurance/reinsurance broker. Date of foundation - October 29, 2005. 25% of capital (portfolio investment) belongs to one of the Lloyd’s associate brokers (London), 75% is owned by the company’s management. Since 2008 MOI Insurance Broker has been a member of the International Association of Insurance Brokers «Assurex Global». The company’s mission is to anticipate our clients’ expectations, masterfully managing risks and making common cause, achieving overall success, recognizing our own mistakes, and what is more, remaining true to ourselves and loving all life’s manifestations.

Gaukhar Kassymkanova - is a founder and self-perpetuating head of the company since 2005. An experienced figure on the insurance market – 15 years, including executive positions in major insurance companies in Kazakhstan, she has built an extensive experience in placement of property, energy, aerospace and other specific risks on the international markets. Alexandr Pererva – Director Dinara Turlybekova – Financial Director Financial ratios, 2012

During the 8 years of development the company has been setting the goal of achieving the leading position among insurance brokers for direct insurance and reinsurance operations in Kazakhstan. In 2009 the goal was achieved and today MOI Insurance Broker is consistently ranked among the top three insurance brokers in Kazakhstan.

Equity Premiums Revenues

The company serves large corporate customers in Kazakhstan and Central Asia, these are now more than 170 companies. Partners are the leading Kazakhstanian insurance companies, and leaders of the international insurance and reinsurance market.

Head office:

Thousands tenge 138,964 5,879,535 217,420

Adress: Entrance 2, office 241, “Sarkand” Business center 248 Furmanov str., Almaty, The Republic of Kazakhstan Tel./Fax: +7 727 313 77 13/11/33 E-mail: info@mobroker.kz Web: www.moibroker.kz

One of the breakthrough projects of the company was the idea to establish the First Kazakhstanian reinsurance pool which initiated launch of the Aviation Reinsurance Pool in May 2012.

KAZAKHSTAN - INSURANCE MARKET

Management Berik ABUOV – Chairman of the Board Since January 2012, Berik ABUOV has been Chairman of the Board of JSC KAZKOMMERTS-Policy. From September 2009 to 16th January 2012 he held the position of Deputy Chairman of the Board of JSC APF GRANTUM. From March 2007 to August 2009 he held the position of Deputy Chairman of the Board of JSC Accumulative Pension Fund “GNPF”. From August 2003 to February 2007 he worked on the position of Deputy Chairman of the Board of JSC “Housing Construction Savings Bank of Kazakhstan”. ** Atina BEKTUREYEVA – Managing Director Nurlybek TOLYKBAEV – Financial Director

About KAZKOMMERTS-Policy KAZKOMMERTS-Policy was founded in 1996. During its existence, it has won its reputation as a reliable and stable partner among numerous clients. The sole shareholder of the company is one of the largest banks in Kazakhstan - JSC KAZKOMMERTSBANK. The company has licenses for 24 classes of insurance, providing coverage of all the areas of activity of individuals and legal entities. In the corporate segment, KAZKOMMERTS-Policy provides property insurance, transport insurance, cargo and oil operations insurance, as well as insurance against construction risks, etc. KAZKOMMERTS-Policy has an extensive branch network, through which the company is represented in all regions of Kazakhstan.

Financial results for 2012

The financial sustainability of the company is ensured through justified tariff policies, a high level of professionalism of employees, an optimal system of reinsurance protection achieved in partnership with world leaders - international insurance and reinsurance companies, and sufficient insurance reserves to secure the obligations under insurance contracts and own funds.

Collected premiums Paid indemnities Assets Own capital

55,275 19,463 115,647 59,403

Head office:

The insurance reserves and own funds are secured by assets, by the relevant requirements of diversification, liquidity, repayment and profitability.

Address: The Republic of Kazakhstan, Almaty 050013, 24 Satpaev street Phone: +7 (727) 258-48-07; Fax: +7 (727) 292-73-97 E-mail: info@kkp.kz Website: www.kkp.kz

The rating agency Standart & Poors in July 2013 raised the credit rating of KAZKOMMERTS-Policy from “B” to “B +”. Forecast – “negative”. The national scale rating was “kzBBB-“.

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USD Thousand

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KAZAKHSTAN - INSURANCE MARKET

LIFE INSURANCE COMPANIES Company

Address

ALLIANCE Life JSC

Almaty 050010, 79 Kaldayakov str.

BTA Life JSC

Almaty 050026 , 187 Aiteke by str.

HALYK –Life JSC

Almaty 050000, 26 Masanchi str.

KAZKOMMERTS-Life JSC

Almaty, 258v Gagarin str.

NOMAD LIFE JSC

Аlmaty 050000, 30A Satpayev str., Tenghiz Towers center, 4 floor

PPF Insurance

Almaty 050059, 248 Furmanov str.

State Annuity Company JSC

Astana 010000, 11 Imanov str.

Contact

Management

Phone: +7 (727) 379.92.36,Fax: +7 (727) 379.92.35 e-mail: info@alliancelife.kz, www.alliance-life.kz Phone: +7 (727) 295.22.33, Fax: +7 (727) 250.14.87 e-mail: info@btalife.kz, www.btalife.kz Phone: +7 (727) 244.62.22; 244.62.23, Fax: +7 (727) 244.62.23 e-mail: halyklife@halykbank.kz, www.halyklife.kz Phone: +7 (727) 244.56.06, Fax: +7 (727) 244.56.09 e-mail: info@kklife.kz, www.kklife.kz Phone: +7 (727) 378.00.08; 378.00.10; 378.00.02; 320.10.60 (61-65) Fax: +7 (727) 320.10.59, e-mail: info@aflife.kz, www.nomadlife.kz Phone: +7 (727) 244.36.80, Fax: +7 (727) 244.36.84 e-mail: info@generali.kz, www.generali.kz Phone: +7 (717) 290.17.22, Fax: +7 (717) 290.17.23 e-mail: info@gak.kz, www.gak.kz

Chairman: Gulnara ALIMGAZIEVA Chairman: Аiman MUKHTYBAYEVA Chairman: Erlan KAMBETBAEV Chairman: Oxana RADCHENKO Chairman: Svetlana KIZATOVA Chairman: Dmitriy NADIROV Chairman: a.c. Nazguli SAGHIDYKOVA

Contact

Management

Phone: +7 (727) 258.13.17, Fax: +7 (727) 258.24.75 e-mail: arman_boranbay@aon.kz, olga_khokhlova@aon.kz Phone: +7 (727) 295.43.26; 295.43.28 (29), Fax: +7 (727) 295.43.27 e-mail:reception@ibroker.kz Phone: +7 (327) 250.58.58; 250.58.59, Fax: +7 (327) 250.36.61 e-mail: info@axiom.kz, www.axiom.kz Phone: +7 (727) 279.60.20, e-mail: director.cincikz@gmail.com, www.cinco.ru Phone: +7 (727) 338.41.74; 338.42.21 (23,24,25), Fax: +7 (727) 338.42.11 e-mail: info@cis-riskconsultant.com

Chairman: Aigerim IGILMANOVA Chairman: Arman BORANBAY Chairman: Bahtiar KADYRBEKOV Chairman: Petr LUBYANCEV Chairman: Tair DZHANBAKIEV Chairman: Elena NAKCHRATOVA

INSURANCE BROKERS Company

Address

A - BROKERS Insurance Broker LLP

Almaty 050002, А2, 162 Dostyk str.

AON Kazakhstan LLP

Аlmaty, 25 Samal - 3

Аlmaty 050043, 59 Han-Tenghery district, 59 Аlmaty 050013, 1-2 appart., AXIOM LLP 152 Nauryzbay batyr str. CINCO Group Central Almaty 050012, 25 Office, Asia LLP 8 Nauryzbay Batyr st. CIS Risk Consultant & Almaty 050026, 24/3, New World Insurance Broker Complex, Samal – 3 Dstr. Almaty 050002, 22 f., 10, Phone: +7 (727) 264.56.59, Fax:+7 (727) 262.78.77 E-Kz.Com Insurance Buzurbaev str.; Almaty 050051, e-mail: broker@e-kz.com Broker LLP ofis 1, 168, Samal-2 Аlmaty 050013, 111 office, Phone: +7 (727) 267.25.39; 250.47.11, Fax: +7 (727) 258.40.04 GrECo JLT Kazakhstan LTD 15 Republic square e-mail: a.orynov@greco.kz, www.greco.eu Phone: +7 (327) 298.08.58, Fax: +7 (327) 298.08.59 MARSH Insurance Brokers Аlmaty 050020, 17 Mitin str. e-mail: Andrei.komarkovsky@marsh.com, www.marsh.kz LLP MOI Insurance Broker. Almaty, Business center 'Sarkand', Phone: +7 (727) 313.77.13; 313.77.33, Fax: +7 (727) 313.77.11 kz LLP 248 Furmanov str. e-mail: info@moibroker.kz, www.moibroker.kz RISK MANAGEMENT Almaty city 050026, Samal 3, Phone: +7 (727) 338.41.74; 338.42.21 (23,24,25), Fax: +7 (727)338.42.11 Consulting Group LLP 24/3 New World Complex e-mail: info@cis-riskconsultant.com Almaty, 412,410 office, 84-а, Phone: +7 (327) 259.65.97; 258.84.97; 266.39.58; 266.39.57; 266.39.59 Gogol str. (off.) SP-MALAKUT Insurance e-mail: d.odnogurova@sp-malakut.kz, e.jussupov@sp-malakut.kz, mail@sp-malakut. Broker LLP Almaty 050000, Office 18, 127/91 kz , www.sp-malakut.kz Gagarin aven., (act.) Almaty 050002, 17 of., 3 fl., Phone: +7 (727) 273.08.89, Fax: +7 (727) 273.92.63 UIB Kazakhstan LLP Bussines centr Forum, 50 Zhibek e-mail: uib_kz@mail.ru zholi str. АVANGARD LLP

Presse Internationale des Assurances

Published by: InterConsult Info Media XPRIMM

ISSN 1841-740X

Coordinators: Marina SHIPOVALOVA, Oleg DORONCEANU

Member since 2003

Editors: Vlad BOLDIJAR, Oleseea ADONEV, Alina CIOBANU

President Sergiu COSTACHE

CEO Adriana PANCIU

Chairman: а.c. Elena KALCHENKO Chairman: Azat ORYNOV Chairman: Andrei KOMARKOVSKYI Chairman: Gauhar KASSYMKANOVA Chairman: Elena NAHRATOVA Chairman: Erlan DZHUSUPOV Chairman: Rysbek KARSYBAYEV

Insurance PROFILE KAZAKHSTAN

InterConsult Info

Media XPRIMM

General Director: Marina SHIPOVALOVA Adress: Kazakhstan, 050004, Almaty, Panfilova Street, 80/36 Phone: (727) 334-00-18; Fax: (727) 266-74-46 e-mail: editor@wfin.kz

Editorial Director: Daniela GHETU Adress: Romania, 021377 Bucharest, Horei Street, 15-17; Phone: 0040 21 252 46 72, Fax: 0040 21 252 46 73 e-mail: media@xprimm.com

KAZAKHSTAN - INSURANCE MARKET

NON-LIFE INSURANCE COMPANIES Company

Address

Contact

Management

Almaty 050008, 402 Office, 109B Abay aven., ,”Globus” Business center Almaty 050010, Medeuskiy district, 79 Kaldayakov str. Almaty 050000, 63 Tole bi str.

Chairman: Baurzhan SEKEYEV Chairman: a.c. Shuhrat GAPPAROV Chairman: Zaure SEITOVA

Karaganda, 15 Bukhar Zhirau str. Almaty 050026, 187 Aiteke by str. Almaty 050008, 157В Shevchenko str. Almaty 050059, 202 office, 2A, Nurlytau, 5 Al-Faraby Av. Almaty 050004, 59 Zheltoksan str. Almaty, 109B, Abay aven./Almaty 050004, 141 Kurmangazy str. Almaty 050059, 275D Furmanov str. Almaty 050013, 154A Nauryzbuy batyr str. Almaty 050000, 88 Aiteke bi str. Almaty 050010, 2 floor, 80 Zenkov str., Almaty 050013, 24 Satpaev str. Almaty 050059, 155 Jamakaeva str.

Phone: +7 (727) 356.26.26, Fax: +7 (727) 356.12.26 e-mail: office@alatau-ins.kz, www.alatau-ins.kz Phone: +7 (727) 258.48.48; 258.47.47, Fax: +7 (727) 258.59.57 e-mail: alp@alp.kz, www.alp.kz Phone: +7 (727) 244.33.44, Fax: +7 (727) 258.58.08 e-mail: mail@amanatinsurance.kz, www.a-i.kz Phone: +7(727) 600.699; 278.41.11 Fax: +7(727 )444.689; +7(727) 916.723 e-mail: lyazzat.buranbayeva@archimedes.kz Phone: +7 (7212) 42.51.91; 50.55.55; 50.66.66, Fax: +7 (7212) 42.51.21 e-mail: info@acko.kz, www.asko.kz Phone: +7 (727) 295.22.33, Fax: +7 (727) 250.14.87 e-mail: info@btainsurance.kz, www.btainsurance.kz Phone: +7(727) 259.77.55, 237.83.83 (85, 86, 87, 95, 96), Fax: +7 (727) 259.77.66 e-mail: insurance@centras.kz, www.centras.kz Phone: +7 (727) 259.93.22, Fax: +7 (727) 259.93.23 e-mail: chartis.kazakhstan@chartisinsurance.com, www.chartisinsurance.com Phone: +7 (727) 258.43.36, Fax: +7 (727) 258.43.38 e-mail: info@theeurasia.kz, www.theeurasia.kz Phone: +7 (727) 259.98.48, Fax: +7 (727) 244.81.82 e-mail: info@kis.com.kz, www.kazakhinstrakh.kz Phone: +7 (727) 3.200.200 (201-216), Fax: +7 (727) 320.02.00 e-mail: interteach@interteach.kz, www.interteach.kz Phone: +7 (727) 250.12.31; , 250.16.81; 250.76.86 Fax: +7 (727) 273.88.27 e-mail: office@aiig.kz, www.aiig.escort.kz Phone: +7 (727) 279.41.41, Fax: +7 (727) 279.41.41 e-mail: info@kazmysstrah.kz, www.kazakhmys.com Phone: +7 (727) 250.00.21, Fax: +7 (727) 293.88.37 e-mail: info@kecic.kz, www.kecic.kz Phone: +7 (727) 258.48.08, Fax: +7 (727) 292.73.97 e-mail: info@kkp.kz, www.kkp.kz Phone: +7(727) 227-31-61, Fax: +7(727) 227.31.53 e-mail: office@kompetenz.kz, www.kompetenz.kz

КОMMESK-ОMIR JSC

Almaty 050000, 19 Nauryzbay Batyr str.

Phone: +7 (727) 244.74.00; 279.06.12, Fax: +7 (727) 279.10.13 e-mail: almaty@kommesk-omir.kz, www.kommesk.kz

LONDON-ALMATY JSC

Almaty, 9 floor, 3B Block, Business Center Nurly Tau, 19/1, Аl-Farabi av.

NOMAD Insurance JSC

Аlmaty, 101 Tole bi str.

Phone: +7 (727) 311.07.77 , Fax: +7 (727) 311.07.77 e-mail: info@laic.kz, www.laic.kz Phone: +7 (727) 321.21.21; (23) ,321.20.00, Fax: +7 (727) 321.21.21 e-mail: info@icn.kz, marketing@icn.kz, pr@icn.kz, www.icn.kz Phone: +7 (727) 266.40.90, Fax: +7 (727) 266.40.94 e-mail: office@nurpolicy.kz, www.nurpoliсy.kz Phone: +7 (727) 258.18.00 (01,02), Fax: +7 (727) 258.18.01 (1591) e-mail: info@nsk.kz, www.nsk.kz Phone: +7 (727) 295.44.10; 295.44.11, Fax: +7 (727) 295.44.10; 295.44.11 e-mail: info@saya.kz, www.sksaya.kz Phone: +7 (727) 335.60.70, Fax: +7 (727) 335.60.71 e-mail: sk@stdi.kz, www.stdi.kz Phone: +7 (727) 394.88.36, Fax: +7 (727) 394.88.35 e-mail: transoil@itte.kz, www.transoil.vibor.kz Phone: +7 (727) 390.11.59; 390.11.60; 390.11.61 , Fax: +7 (727) 390.11.58 e-mail: office@trustinsurance.kz, www.trustinsurance.almaata.kz

Chairman: Natalya JURKINA Chairman: Galym AMERKHODZHAEV Chairman: Beibyt ТURYSBEKOV Chairman: Oybek KHALILOV Chairman: Boris UMANOV Chairman: Marat SATUBALDIN Chairman: Ernst KURLEUTOV Chairman: Tolkyn ABDRAKHMANOVA Chairman: Amina KASYMOVA Chairman: Erkyn SADYKOV Chairman: Berik ABUOV Chairman: Anna ROZHKOVA Chairman of the Management Board: Oleg KHANIN Chairman: Yergali BEGIMBETOV Chairman: Indira NURMAMBETOVA Chairman: Marat TAYSHIBAEV Chairman: Zharkyn ALZHANOV Chairman: Svetlana GUGUCHKINA Chairman: Damyr KHAYBULLIN Chairman: Myrzagali ISMAGULOV Chairman: a.c. Aiman ZHANDAGULOVA

Phone: +7 (727) 311.13.00, Fax: +7 (727) 311.13.02 e-mail: T.sadvokasova@Tsgarant.kz ,www.tsgarant.kz

Chairman: Zhanil SMAILOV

Phone: +7 (727) 250.69.36; 250.69.29; 279.55.97, Fax: +7 (727) 250.69.36; 250.69.29 e-mail: inbox@vic.kz, www.vic.kz Phone: +7 (7172) 20.01.23, Fax: +7(7172) 20.01.41 e-mail: Zsk2003@mail.ru

Chairman: Raushan ЕRZHANOVA Chairman: Erik JUMAGAZIEV

ALATAU JSC ALLIANCE-Policy JSC AMANAT Insurance JSC ARCHIMEDES Kazakhstan JSC ASKO JSC BTA Insurance JSC CENTRAS Insurance JSC CHARTIS Kazakhstan JSC EURASIA Insurance JSC HALYK–KAZAKHINSTRAKH JSC INTERTEACH JSC KASPI Insurance JSC KAZAKHMYS JSC KazExportGarant JSC KAZKOMMERTS-Policy JSC KOMPETENZ

NURPOLICY JSC OIL Insurance Company JSC SAYA JSC STANDARD Insurance JSC TRANSOIL JSC TRUST Insurance JSC TSESNA Garant JSC VICTORIA JSC ZERNOVAYA Insurance JSC

www.allinsurance.kz

Almaty, 83 Pushkin str.

Almaty 050000, 102/55a Panfilov str. Almaty, 186 Kabanbay Batyr str. Almaty 050040, 7 office, 30a Satpayev str. Almaty 050040, 26/11a Markov str. Almaty, 7-а М.Оzturk str. Almaty 050004, 38 Tulebayev str. Almaty 050013, 6 floor, 4В block, Business center “Nurly Tau”, 15, Al-Farabi аv. Аlmaty 050000, 521 Seifullin str. Astana, Office 7, 4/2 Otyrar str.

Chairman: Lyazat BURANBAEVA

Special Issue

KAZAKHSTAN - INSURANCE MARKET

Kazakhstan Besides business Located in Central Asia region, Kazakhstan is a unique region in the world, because of its history, geographical position and size. Being the world’s 9th largest country and located in the centre of Eurasia, it is also the largest landlocked country in the world. These resulted in a specific climate and a peculiar natural system of the country, which seems to absorb the brightest examples of landscape of both continents. In addition, the complicated history of Kazakh people and the constant interaction of the nomadic lifestyle with the people settled in South Kazakhstani ancient cities, have lead to a unique and authentic culture of Kazakhstan. These peculiarities have created the opportunity to develop various and diverse offers in Kazakhstan’s travel and tourism industry, which include authentic cultural tourism, nature-based activities, among which ecotourism, bird watching, etc. in national parks and protected areas, skiing or trekking in the mountains, water sports, sunbathing and swimming in lakes and rivers of Kazakhstan, and many others.

Astana – a city built in the steppe Since 1997, when the capital of Kazakhstan was moved here from Almaty, Astana has been the “new” capital as well as the main business center of the country. Located in AKMOLA oblast, Astana city lies along ISHIM River at the junction of TransKazakhstan and South Siberian railways. In fact, its location, at the crossroads of caravan ways which attracted inhabitants of the Steppe for a long time and closer to Russia, was the main reason for the change, besides the lesser exposure of the area to the earthquake risk. Astana city is becoming a new cosmopolitan western-style city with skyscrapers and offices that headquarter intercontinental oil corporations. The famous Japanese architect Kisho KUROKAWA worked on the master plan of the city, while many of the buildings were designed by the famous architect Norman FOSTER.

Among the main places of interest of Astana city are: AK-ORDA - the residence of the Kazakhstan Republic President; BAITEREK monument – a symbol of the new Astana. The glass bowl (diameter – 22 meters) has a bar and a panoramic area; THE INDEPENDENCE PALACE - the building where diplomatic and other international affairs take place; THE PALACE OF PEACE AND CONCORD the building where Congresses of the world and traditional religious leaders are held.

Almaty – a city close to the sky The largest city in Kazakhstan, ALMATY is the historical capital of the country and a well known cultural center of Central Asia. The city is located in the center of the Eurasian continent, in the south-east of Kazakhstan, at the foot of the mountains of Trans-Ili Alatau – the most northern ridge of Tien Shan mountains, at an altitude of 600 to 1650 meters above the sea level. Rendering a good service to its historic names which derive from the Kazakh word for “apple”, Almaty is a garden-city, rich in green areas and full of fountains, which, along with an extensive network of channels, create a single set of ponds and streams in the city. Spots worth seeing/Places of interest/ Landmarks:

KAZAKHSTAN - INSURANCE MARKET

Zenkov Cathedral - Built entirely in wood without any nails - this church is one of the few buildings to survive the big earthquake of 1911. Today it is a colorful part of the Panfilov Park in Almaty. The big circle glowing fountain in Dendra Park of the First President Nursultan Nazarbayev The Green Bazaar - on the Silk Road, it is Kazakhstan’s biggest market and brings to life all the finest traditions of the Asian bazaar, buying, selling and meeting people. The Arasan Baths - a beautifull place which offers the opportunity of a memorable experience with a Russian (Russkaya), Finnish (Finskaya) or Turkish (Vostochnaya) bath.

Trekking and winter sports in the mountains A range of high, middle and low mountains, such as TIEN SHAN, ALTAY, ULYTAU, KAZYGURT, have beautiful nature attracting tourists from all over the world. TIEN SHAN Mountains are the highest among them (with the highest peak of about 7000 meters), and ALMATY, the largest city of Kazakhstan, is located at its bottom. Thus, an easy access to the marvelous landscapes for tourists interested in trekking and winter sports is available from Almaty city. The most popular climbing routes are located in the Small Almaty Valley and Bogdanovich Glacier. Attractions of these places include Pogrebetsky Glacier (4,231 meters), Tuyuc Su (4,100 m), Ordzhonikidze (3,980 m) peaks, and many others. In addition, the high mountains of Kazakhstan are ideal for winter sports. There is no wonder that Kazakhstan hosted the Winter Asian Games in 2011: one of the priorities of the country has been the

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propaganda of winter sports. A unique sport complex, MEDEU, with a skating rink popular among tourists, was built in the 1950’s, at 1691 meters above sea level, which makes it the highest skating rink in the world. A sophisticated artificial refrigeration system enables to keep the high quality ice coverage over 8-months of the year. Another major winter sport attraction in Kazakhstan is SHYMBULAK ski resort, also located not far from ALMATY. Snow lies in these places from November till May; however, sunny weather is usually recorded there during more than three hundred days each year. The resort hotel can accept up to 114 tourists.

Water sports, sunbathing and health resorts Kazakhstan means not only steppes and mountains; it is also a country of rivers and lakes. Lakes among the steppes are usually like an oasis among empty deserts. The coast of the biggest lake in the world – the Caspian Sea - is perfect for sunbathing, swimming and fishing. The largest number of reservoirs is concentrated in the south-east part of the country, in the region with a symbolic name ZHETYSU - “Seven Rivers”. Almost

all the rivers of ZHETYSU belong to the basin of the Lake Balkhash, which is also a popular tourist destination for its health centers and recreation camps. Besides the health resorts, rafting in mountain rivers for extreme tourists, boating and sailing in lakes are only a few examples of activities Kazakhstan offers to tourists.

Special Issue

KAZAKHSTAN - INSURANCE MARKET

Culture: Ethnotourism The unique culture of Kazakhstan is a good reason to travel to Kazakhstan for many tourists. In almost every corner of the republic a visitor, interested in the real life of the Kazakh people - their traditions, rituals, art and culture, will find many things of interest. These include museum complexes, ethno villages, depicting the traditional lifestyle of Kazakh people, historical sites of medieval cities and many others. For example, tourists are offered to experience the traditional lifestyle of the Kazakhs, to try national dishes and to interact with the local people in Shabanbay Bi Village, situated in the Kyzylaray Mountains, in Central Kazakhstan. The Zhambyl Zhabayev museum complex in ALMATY region includes a house with a garden, where the poet lived in the XIXXX centuries and a mausoleum. This is a visual representation of not only Zhambyl’s life, but also of a whole era in which the poet lived and worked. Southern Kazakhstan is famous for the ancient cities located at the routes of the Great Silk Road with historical monuments and other sites.

The ethno-memorial complex Map of Kazakhstan - ATAMEKEN, located in ASTANA, is the largest ethnographic park in Kazakhstan and a unique outdoor museum. Cities and landscapes of the country, as well as mini copies of main attractions and historical sites, can be found on the map.

If you eat Kuirdak and drink Kumiss, then you are in Kazakhstan Hospitality has always been a main character trait of the Kazakh people. A hospitable owner would offer their guest a seat at a place of honor. Traditionally, the meal is served at a low round table, called dastarkhan. First of all, the guest of a Kazakh family serves kumiss (a drink based on mare milk), shubat or airan, the next meal is tea with milk or cream, baursaks, raisins, irimshik, and kurt. Then the guest tastes horse-flesh or mutton snacks - kazi, shuzhuk, zhal, zhaya, sur-et, karta, kabirga. Wheat flour cookies are very common too. The main meal of every Dastarkhan and one of the most delicious for the Kazakh

people is Kazakh-style cooked meat. Boiled meat is served in large uncut pieces. The host cuts the meat themselves and treats every guest: pelvic bones and shank for honorable old people, brisket for the sonin-law or daughter-in-law, neck-bone for girls and so on. The most honorable guests receives the head of the ram cooked in a particular way. The guest should part the head between people around the Dastarkhan, obeying to an ancient ritual and thus showing a respectful attitude to guests, old people, and kids, as well as near and distant relatives. The delicious aromatic meat is eaten with thin boiled pieces of pastry. an excellent addition to this dish is the rich-flavored meat bouillon - Shorpa, served in phials. Kumiss and tea are the last dishes of the meal. Kazakhstan’s cuisine includes not only the traditional national Kazakh dishes, but also the best dishes of Uzbek, Russian, Tatar, Korean and other cookeries. That’s why the Kazakh cuisine, while saving its national characteristic features, has also some international features.

Sources: AboutKazakhstan.com VisitKazakhstan.kz