Results of BELARUS Re for 2013 can be described as positive ones, taking into considerations the company's activity in diversification area with international insurance and reinsurance companies, as well as a continuous search for new markets and partners, all of which led to an annual increase of the share of international risks taken in reinsurance from abroad and confirmation that the company is a reliable partner with an impeccable reputation in the international reinsurance market.

During the reporting period the company was concluded 8,618 reinsurance contracts. In total, the amount of the reinsurance premiums on assumed reinsurance was BYR 462,660.6 million, the growth is 198.8% in comparison with 2012 (BYR 232.711.8 million), including BYR 45,615.5 million of the reinsurance premium, received from international markets, the growth is 120.7% in comparison with 2012(BYR 37,783.9 million).

Within the total amount of the reinsurance premiums the largest share was taken by CAR - 33.57%, commercial property - 20.26%, motor third-party liability insurance in the system of Green Card - 11.15%, aircraft owners' third party liability insurance - 5.15%, aircraft insurance - 4.5%, financial risks insurance - 4.37%, export contract insurance - 2.92%, cargo insurance - 2.26%, customs authority liability insurance - 2.16%.

The growth of CAR in BELARUS Re portfolio is primarily connected to the insurance of CAR and third-party liability related to the construction of the Nuclear Power Plant in Belarus. The world-biggest top-rated insurance and reinsurance companies (with a rating of at least A) with impeccable reputation are retrocessionaires. The leader is MUNICH Re. The placing of the risk in international markets was carried out through MARSH - Insurance brokers CJSC.

Reinsurance premium received by treaty contracts amounted to BYR 106,800.8 million, by facultative contracts - BYR 343,581.1 million.

In 2013, BYR 39,279.5 million of the insurance indemnity was paid off, that amounted to 8.72% of the reinsurance premium, the share of the reinsurers is 9,329.1 million or 23.8% of the total reinsurance indemnity paid.

Preliminary figures indicate that 2013 combined ratio made up 29.2%. The company's administrative expenses totaled at BYR 44,570.9 million or 9.9% of the risks assumed. The operating profitability is 13%, finance and economic profitability is 32.1%.

How much cost for BELARUS Re the total loss of spacecraft SYCH 2?

In April 2013, the reinsurer has made a large payment for damages caused by the total loss of the spacecraft "Sych 2". The insured is The State Space Agency of Ukraine. The irretrievable loss of power supply had resulted in the spacecraft loss.

Due to the damage caused and failure of Sych-2 further target use, Belarus Re paid its share of the reinsurance recovery in the amount of USD 500,000. The total amount of loss was USD 7.5 million.

Furthermore in the 4th quarter of 2013, Belarus Re paid its share of the reinsurance indemnity in the amount of RUB 16,200,000.00 as the result of the railway bridge collapse. The Insured sustained losses connected with business interruption. The loss occurred on 7 May, 2011 in SAYANOGORSK (the REPUBLIC OF KHAHASSIA, RUSSIA). The total amount of loss was RUB 770 million.

Plans for business development in the coming 2014

"The coming 2014 is expected to be as challenging for our company as the expiring year. However, we count upon an increase in premiums collected from all business lines of the company. Specifically the positive dynamics will be maintained both by conventional classes of business (i.e. Green Card, Aviation, Property) and some major investment projects that are to be implemented within the Republic of Belarus" said Mikhail I. BULAVKIN, General Manager, BELARUS Re.

According to official representative of the company, in 2014, BELARUS Re plans to continue its activities in the main areas of the last years' international cooperation. At the same time, taking into account the growing business competition in reinsurance, the company's efforts will focus on the constant search for new prospective foreign markets due to the intensification of integrated processes in the post-soviet states, further expansion of Belarus Re in the markets of Middle East, South-East Asia and India., as well as extension of cooperation with companies from Africa and Latin America.

BELARUS Re plans to develop both direct partnerships with reinsurance companies and via global brokers.