COMPANY PROFILE

Chartis Inc.

Chartis
Your world, insured
Our name, Chartis, is the Greek word for map. It is suggestive of our ability to set a course for our clients and help them pursue new possibilities. It also embodies our history and culture, both of which are rooted in exploration and the pursuit of excellence through problem solving and innovation. Our symbol is a compass in the shape of the letter C for Chartis. It symbolizes the pioneering spirit of Chartis and our willingness to be the first to venture into new markets and products. Blue represents the confidence and assurance we provide around the world, and yellow signifies the brighter future we make possible. Our brand line is Your world, insured. The phrase your world helps to personalize our brand and communicate our commitment to clients and partners. It declares that we meet their insurance needslarge or small, individual or commercial. The term insured alludes to the security and assurance that our products and services provide to customers.

Chartis: Your world, insured

Cultural Principles
Innovation We encourage change, always pursuing promising opportunities for clients, our partners and ourselves.

World Citizenship

We embrace diversity and foster a culture that promotes teamwork and inclusion to pursue a common good.

Partnership

We create the future by working together and with our clients in an atmosphere of trust and confidence.

Intergrity

At the heart of everything we do is an unshakable commitment to honesty, fairness and respect.

Chartis: Your world, insured

Chartis Inc.:

>> a world leading property-casualty and general insurance organization; >> serve more than 40 million clients; >> geography: 160 countries and jurisdictions; >> one of the industrys most extensive ranges of products and services, deep claims expertise and excellent financial strength; >> 90-years of history; >> In 2009, Chartis wrote over $40 billion in gross premiums worldwide; >> 2009 operating income was $699 million; >> in 2009, Chartis paid on average, $75 million in claims every business day; >> in July 2009 rebranded non-life operations AIG >> Chartis has granted the Most Client Responsive Insurer of the Year 2010 award (source: StrategicRISK journal)
Chartis: Your world, insured

Chartis key global finance metrics

2009
2009, $ billion Gross Premiums Written Net Premiums Written Chartis US* 22.3 20.5 Chartis International** 18.2 12.3 Chartis Inc. 40.5 32.8

Combined Statutory Surplus

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* Chartis US property and casualty operations in the US and Canada **Chartis International property and casualty operations outside the US and Canada

Chartis: Your world, insured

Chartis Business Profile

The 2nd largest American Insurance Company (Fortune 500*, 2010). 2009 GPW = over $40 billion. Region
Business
Personal Lines; 9%
Africa/MEMSA; 2% Americas; 3% Asia/Australia; 4%

Other; 16%

UK/Ireland; 15% Far East; 10%

Professional Liability/Financial Lines; 10%

Europe; 11%

Commercial Casualty; 32% A&H/Travel; 15% Commercial Property; 18%

USA/Canada; 55%

*List of TOP 500 largest American corporations

Chartis: Your world, insured

Business Overview: Chartis International

Property and Casualty operations outside the US and Canada (45% of Chartis Inc. GPW)
>Product portfolio: personal and commercial general insurance. >Executive team: Average tenure with Chartis = 22 years. > 2006-2009 Average Combined Ratio: 90%. >Leading general insurer in developed markets, including Japan and Europe. > An established leader in developing markets, including first in China, India, Russia, etc.. >Market leader in industry specialties, i.e. Global Marine & Energy and Financial Lines. >Named Best Global Insurer by Euromoney Magazine.

Chartis: Your world, insured

Business Overview: Chartis International

Property and Casualty operations outside US and Canada (45% of Chartis Inc. GPW)
Business

Region
Aviation; 3% Glabal Marine; 4%

Americas; 7% Africa/MEMSA; 4% Europe (includes Western Europe, Central europe and CIS); 24%

Speciality Lines; 17%

Other/Services; 2% Lloyd's; 5% Property; 7%

Asia/Australia; 10%

Casualty; 12%

A&H; 22% Personal Lines; 13% Energy; 15%

Far East; 22%

UK; 33%

Chartis: Your world, insured

Chartis International: GAAP financial results

GAAP Financials, $ mln. 1. 2. 3. Net Premium Written Underwriting Profit (Loss) Operating Income before Net Realized Capital Gains (Losses) Operating Income 2009 12.291 (30) 475 2008 14.390 1.047 1.672 2007 13.051 1.771 3.236 2006 11.401 1.871 3.375

4. 5. 6. 7.

624

592

3.070

3.317

Loss Ratio Expense Ratio Combined Ratio

59.4% 40.8% 100.2%

55.6% 36.9% 92.5%

50.6% 35.1% 85.7%

49.9% 34.3% 83.2%

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Business Overview: Chartis US

Property and Casualty operations in the US and Canada (55% of Chartis Inc. GPW)
>Product portfolio: over 400 products and services. >Executive team: Average tenure with Chartis = 20 years. > 2006-2009 Average Combined Ratio: 98%. >Regional offices: Atlanta, Boston, Chicago, Cleveland, Dallas, Houston, Los Angeles, New York, Philadelphia, San Francisco, Toronto. 22 branches > Customer Segmentation: National Accounts (>$500M revenue), Corporate Accounts ($10M-$500M), Small Business (<$10M) >2009 Best Insurer overall, National Underwriter

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Business Overview: Chartis US

Property and Casualty operations in the US and Canada (55% of Chartis Inc. GPW)
Business
Private Client Group; 5% Healthcare; 3%

Market Segment
Other; 8%

Aviation; 2% Worker's Compensation; 13% Environmental; 2%

Consumer; 7% Small Business; 8% National Accounts; 39%

A&H Products; 6%

Multinational P&C; 6% General Liability/Auto Liability; 25%

Programs; 5%

Management/Professio nal Liability; 9%

Property; 19%

Corporate Accounts; 38%

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Chartis US: Stat financial results

Stat Financials, $ mln. 1. 2. 3. 4. 5. Net Premiums Written Net Income (after tax) Loss Ratio Expense Ratio Combined Ratio 2009 20.264 2.531 85.2% 24.7% 109.9% 2008 23.651 2.194 77.8% 24.0% 101.8% 2007 26.174 5.460 67.3% 20.4% 87.7% 2006 26.319 3.949 69.5% 20.8% 90.3%

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MAP Global Clients

Chartis: Your world, insured

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European Risk Management Clients

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Chartis Europe S.A.

Wholly owns CJSC Chartis Insurance Company (100% stockholder)
>> S&P financial strength rating A+; !! Headquarter Paris, France >> Total assets by the end of 2008 7,8 billion euro; >> GPW 2008 3,25 billion euro; >> Capital funds 2008 1,39 billion euro; >> Combined ration 2008 86%; >> Underwriting results, 2008 165 million euro; !! &KDUWLV(XURSH6$surplus exceeds the minimum requirement by 4.5 times

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CJSC Chartis Insurance Company

CJSC Chartis
16 years in Russia

>>Central office in Moscow

Branch in St. Petersburg >> 2 point-of-sales offices in Moscow >> Agencies in Moscow and St. Petersburg >> General agents in Kaliningrad, Yekaterinburg, Rostov-on-Don, Cheboksari >> Number of employees - 130

Year 1994 1998

Form and legal entity name AOZT RUS AIG (AIG share - 49%) Renamed to CJSC AIG Russia (AIG share - 49%) As a result of the amendments to the insurance law about composite companies, AIG Insurance and Reinsurance Company, a specialized general insurance company was established. The new company has been fully capitalized

2005

by shareholder and licensed by the Federal Service from Insurance Supervision. (wholly owned by AIG Europe S.A.). AIG Russia continues to underwrite and service life and pension insurance policies.

2009

Renamed to CJSC Chartis Insurance Company (wholly owned by Chartis Europe S.A. /previously AIG Europe S.A./). Licenses FSSN RF C 3947 77, P 3947 77.

2010

16 years in Russia

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CJSC Chartis
Advantages for cooperation
1. Financial strength CJSC Chartis is a financially strong, stable and flexible organization. The capital and reserves of Chartis Insurance Company are protected and closely regulated by Federal Service of Insurance Supervision (FSSN), Russia. Parents company S&P rating A+. The Company continues to meet the reserve requirements necessary to meet our policyholder obligations 4. Professional team Dedicated qualified team for clients service. Complex of operations for Clients needs. Account management. 2. International and Russia Experience Global and Russia experience in providing insurance and financial service. Operations in Russia since 1994. Access to Global Network & Expertise across Chartis 3. Trust Client relations CJSC "Chartis Insurance Company insures large, midsized and small Russian enterprises, as well as a number of major foreign multinational companies operating in Russia.

5. Exceptional quality, business support Outstanding service, efficiency, data protection, compliance. Treated fairly business ethic. Euromoney claims Service Award.
Chartis: Your world, insured

6. Fulfillments of obligations CJSC Chartis Insurance Company remains financially fit and committed to providing unmatched value to customers by delivering distinct and differentiated solutions.
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Best Insurer for Claims Resolution in Russia

According to Euromoney analytical survey
Chartis Insurance Company (before 03.08.2009 CJSC AIG Insurance and Reinsurance Company) has won Euromoney Insurance Award as the Best Insurer for Claims Resolution in Russia in 2009 (www.euromoney.com). The respondents of Euromoney Insurance Survey, senior decision-makers from large corporate and financial institutions nominated AIG Insurance and Reinsurance Company as the most reliable insurance company in Russia for settling claims . Euromoney is the leading international analytical journal on financial markets

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CJSC Chartis. Products portfolio

Out of 23 of type of insurance, determined by the Russian Law About organization of insurance business in Russian Federation CJSC Chartis Insurance Company has licenses for 15 types of insurance. Commercial Insurance
Property Civil liability, including professional liability Financial Risks: D&O, BBB Energy insurance Construction and erection insurance Cargo insurance Corporate Motor Vehicle Fleet Insurance Terrorism risk insurance Products insurance against spoilage Accident & Health

Personal Insurance
Automobile insurance Homeowners/Renters Insurance Accident & Health Travel Insurance
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CJSC Chartis
Innovations in Russia
>> >> >>
Created D&O (Directors and Officers liability insurance) market around 80% of all D&O written polices in Russia; 7KHcapability to handle large, complex risks; Broad capacity to write significant risks in for metallurgy and oil sectors. Providing risk engineering, risk management, consultation of certified experts;

>> Product recall expense insurance the first and sole licence for this type of insurance in Russia; >> Complex cards holders insurance our expertise (loyalty products, secure wallet, price protection,
purchase protection, fraud insurance);

>> 5einsurance arrangements

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CJSC Chartis
Innovations in Russia:
>> Products for employee benefits (voluntary emloyee benefits sales technique), occupational accident and
specialty risk insurance as an advantage of insurance cover for the employee and employees family;

>> >> >>

First A&H Travel NAC; Direct Marketing Programs cooperation with financial and retail institutions; Insurance of expensive and exclusive personal property, including luxury goods and arts

>> Providing highly professional underwriting expertise >> 90-year history of parent company, one of the industrys most extensive ranges of products and services,
deep claims expertise and excellent financial strength

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CJSC Chartis 2010 -2012

Charting the course
>> Overall goal is profitable growth, not market share; >> We will pursue a mixed portfolio of Commercial and Consumer Business; >> Organic growth but acquisitions not excluded; >> Continue to lead underwriting on major commercial risks placements which require capacity and security; >> Continue to innovate on product and distribution; >> With consumer continue to offer competitive products for those segments and niches where we are ready to compete; >>Attract and retain the best human resources in the marketplace who fit our needs and strategy; >>Geographically: expand conservatively into new cities through agency relationship.

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Contacts
CJSC Chartis Insurance Company 16/1, Tverskaya street., Moscow 125009, Russia Tel. + 7 (495) 935 89 50 Fax: + 7 (495) 935 89 52 Email: reception.moscow@chartisinsurance.com Web-site: www.chartisinsurance.com/ru

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Chartis is a world leading property-casualty and general insurance organization serving more than 40 million clients in over 160 countries and jurisdictions. With a 90-year history, one of the industry most extensive ranges of products and services, deep claims expertise and excellent financial strength, Chartis enables its commercial and personal insurance clients alike to manage virtually any risk with confidence. Chartis is the marketing name for the worldwide property-casualty and general insurance operations of Chartis Inc. For additional information, please visit our website at www.chartisinsurance.com/ru.

Appendix

CJSC Chartis Insurance Company

Financial Results
Description 1. 2. 3. 4. 5. 6. 7. Gross Premium Written (GPW) Net Premium Written (NPW) Insurance Claims Paid Equity Capital Actual Reserves Assets Profit 2009 Above RUB 1,6 billion Above RUB 796 million Above RUB 517 million Above RUB 960 million Above RUB 1,18 billion Above RUB 2,5 billion Above RUB 26 million

CJSC Chartis Insurance Company remains financially fit and committed to providing unmatched value to customers by delivering distinct and differentiated solutions. The capital and reserves of Chartis Insurance Company are protected and closely regulated by Federal Service of Insurance Supervision (FSSN), Russia. Solvency margin is above 3,6 times (699 461 thousand rubles) the minimum regulated requirement (967 649 thousand rubles vs 268 188 thousand rubles)
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Large Claims Payments

Statistics. 2008-2009
Field of Clients Company activity 1. 2. / / Line of Business Description of loss Amount of claims paid, rubles. 70,8 33,9 , ,

3.

29,9

4.

27,2

5.

26,9

6. , 7. 8. /

21,8

9,9 9,5

9.

4,8

10.

4,7

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