Mikhail I. BULAVKIN, General Manager, Republican Unitary Enterprise "Belarusian National Reinsurance Organization"

3 October 2013 — Olesea ADONEV
mikhail_bulavkinXPRIMM: Belarus is one of the few countries in CIS with a favorable investment climate that promotes the involvement of foreign capital in the Republic. Long-term projects need international reinsurance protection. What are the main long-term projects that have been developed in Belarus, in which BELARUS Re participated?
Mikhail BULAVKIN:
As a rule, the process of attracting foreign investments into the Republic of Belarus is supplemented by an objective requirement of any investor to be provided with reliable protection. Foreign investors consider insurance and further reinsurance of major risks to be one of the main guarantees to protect their interests.

Despite a short period of activity on the local and international reinsurance markets, BELARUS Re has experience and best practice in cooperation with leading foreign insurance and reinsurance companies (MUNICH Re, HANNOVER Re, ALLIANZ, SCOR and others) while protecting interests of both native and overseas investors.

All the projects which BELARUS Re participates in are quite diversified. Among the major ones in the year 2012, the following insurance programs of such international investment projects achievable on the territory of the Republic of Belarus can be distinguished: the complex construction of BERYOZA and LUKOML Hydroelectric Power Stations; POLOTSK Hydropower Plant; construction of retail entertainment center with HILTON Hotel and parking in MINSK; as well as reinsurance against risks of the Belarusian space vehicle launching and operating.

In 2013, BELARUS Re together with insurers and retrocessionaires provided reinsurance coverage for the construction of Belarusian NPP, to total investment amount of USD 8.9 billion.

Besides, this year the company continues to participate in several long-term projects, among which one can mention the reconstruction of Minsk-Gomel M5 Highway by the Italian specialists from TODINI CONSTRUZIONI GENERALI S.h.A. There is no doubt that an interesting project for BELARUS Re is a property reinsurance project for VMG Industry, one of the international companies of VMG Woodworking Holding Group, being one of the major furniture producers and exporters in the Baltic States.

XPRIMM: How has the company positioned itself on the national and international markets?
Mikhail BULAVKIN:
BELARUS Re has been operating on the international market since 2007, year after year showing a positive trend in inward reinsurance. It should be noted that the attraction of currency assets is not a goal but a consequence of the development of the company's business objectives, not only through domestic reinsurance, but alwo owing to international reinsurance.

Taking into account the historically-formed regalia, CIS countries, primarily the Russian Federation, are considered a major reinsurance market. BELARUS Re participates in obligatory programs of leading Russian companies such as INGOSSTRAKH and MOSCOW Re. In addition, we are developing cooperation with foreign countries. Currently, the company is involved in the syndicates obligatory programs of HANNOVER Re and LLOYD for catastrophe risks reinsurance. The company plans to increase interaction with South-East Asian market.

XPRIMM: Tell us about the history and activity of the Belarusian Nuclear Insurance Pool. Why was it necessary to be created and how exactly does it function?
Mikhail BULAVKIN:
The Belarusian Nuclear Insurance Pool was created on 5th March, 2009 on the initiative of the Belarusian National Reinsurance Organization to insure and further reinsure against outward risks related to the construction, erection and operation of the Nuclear Power Plant in the Republic of Belarus. The Pool consists of seven insurance companies, some of them are state-owned and the others are companies having effective state participation of more than 50%: BELGOSSTRAKH, EXIMGARANT of Belarus, BELKOOPSTRAKH, BELNEFTESTRAKH, PROMTRANSINVEST, TASK and the Belarusian National Reinsurance Organization.

As specified in the negotiated contract, the Belarusian National Reinsurance Organization being a leading reinsurer, carries on correspondence related to the specified risks and performs accounts, records and insurance payments on behalf of the Pool. For the period of 2009-2013, the Belarusian Nuclear Insurance Pool provided the Ukrainian and Russian Nuclear Insurance Pools with reinsurance coverage for nuclear liability and nuclear plant property insurance. In the future, the Pool plans to continue the rapid development of the cooperation with the International pooling system for nuclear insurance.

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