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THE INSURANCE SECTOR

A DIRECT INVESTOR AND FACILITATOR FOR INVESTMENTS

Mr. Christoph Wolf February 2008

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Serbia Turkey Croatia Bulgaria Romania

2830

35

61

73

40

100%

Market shares of foreign Insurance Companies, 2006*In percent

Average

*Foreign Insurer as a „dominating“ owner; Shares at 100%, if defined as “foreign Insurer” Source: Market statistics of FSA (Financial Supervisory Authorities) and Insurance associations, own analysis

3

Bulgaria

31

73

69

53

foreigndomestic

Croatia

60 4727

40

Foreign Insurancecompanies

2005 20062006 2005

56% 55%* 61% 78%

Shares of Foreign insurance companies in equity and number of companiesIn Percent

*In 2006 there were 1 domestic insurance company and 2 foreign insurance companies lessSource: Market statistics of FSA (Financial Supervisory Authorities) and Insurance associations, own analysis

4

exemplary

2002 2006

5278

2002 2006

4656

2002 20063

47*

2002 20060 0

2002 2006

1535

2002 2006

4662

Expansion of foreign insurance companies in South-Eastern Europe

In Percent for all insurance companies

* South-Eastern-Europe Insurers own 3 of them there Source: Market statistics of FSA (Financial Supervisory Authorities) and Insurance associations, own analysis

5

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

0,0 0,5 1,0 1,5 2,0 2,5 3,0 3,5

Austria

Croatia

BulgariaSerbiaRomania

Turkey

Expected development

Non-Life

Lif

e

Insurance Penetration on South-Eastern Europe marketsIn Percent of gross domestic product (GDP)

Source: Market statistics of FSA (Financial Supervisory Authorities) and Insurance associations, own analysis