PRESS-RELEASE

(Translation from Russian)

RA «Expert-Rating» has confirmed the rating of OJSC «Transsib Re» at the highest level according to the national scale

May 10, 2012 the financial stability rating of the reinsurer OJSC «Transsib Re» has been confirmed by the Rating agency «Expert-Rating» at the level uaAAA according to the Ukrainian scale. Confirming the rating of the reinsurance company at such a level, the Agency was based on the analysis results of the company’s activity in the Q1 of 2012.

Table

Key performance indicators of OJSC «Transsib Re» in the Q1 of 2012

Source: data of the Company, calculations by RA «Expert-Rating»

1. As of 31.03.2012 assets of OJSC «Transsib Re» have amounted to RUB 1132,422 mln. Shareholders’ equity has amounted to RUB 629,245 mln that is by 5,96% more than on 31.03.2011. At the same time, total liabilities of the reinsurer have decreased by 25,08% in the period from 31.03.2011 to 31.03.2012. Therefore, on 31.03.2012 total liabilities have amounted to RUB 503,177 mln. As a result, the shareholders’ equity/total liabilities ratio has amounted to 125,05% at the end of the Q1 of 2012 that indicates a redundant capitalization of the company. As of the beginning of the second quarter of 2012, RUB 195,582 mln have been accumulated at the company’s accounts. Therefore, the cash/liabilities ratio has amounted to 38,87% that is considered as a normal level of liquidity in terms of the Russian market.

2. The company «Transsib Re» have collected RUB 170,634 mln of gross premiums in the Q1 of 2012 that is by 26,2% more, than in the Q1 of 2011. At the same time, insurance indemnities have decreased by RUB 10,486 mln or by 11,18% in comparison with the first quarter of 2011, thus, having decreased the ratio between indemnities and gross premiums from 69,37% down to 48,82%, or by 20,55 p.p. The increase of the reinsurer’s gross business is indicative and important for the Russian market. According to the Federal service of the financial markets, in 2011 gross business of the insurers have increased by 20,2%, premiums of «Transsib Re» have increased by 6,2 p.p. in the Q1 of 2012 that has exceeded the results of the market in 2011. The chances of «Transsib Re» to increase its market share are significantly growing after some specialized reinsurance companies in Russia, which couldn’t perform new requirements set by federal legislation in 2011, have descended.

3. The financial result from operating activities of the reinsurer has amounted to RUB 36,472 mln following the results of the Q1 of 2012 that is by 16,83% more, than in the same period of 2011. ROS has amounted to 21,37%. The reinsurance company has finished the first three months of current year with net profit of RUB 10,406 mln that exceeds the same indicator of 2011 by 7,64%.

In the Agency’s opinion, overcapitalization of OJSC «Transsib Re» against the background of the increase in gross business and in profitability indicators of the Company show good financial stability of the reinsurer and high reliability.

Analytical service of RA «Expert-Rating»

Confirmation of OJSC «Transsib Re» (english version) - 10.05.2012