BUSIN Ins. Co. signed Aviation Liability Reinsurance Agreement (Aircraft Third Party Legal Liability/ Passenger Legal Liability / Cargo Legal Liability) a limit of US Dollars 600 million exclusive to Ukrainian market.

This Agreement proves the confidence of world-famous Insurance companies and brokers in BUSIN and it's high standards of integrity in the international insurance market.

Inception date of the Agreement - 1^st January , 2006. The cover obtained with such Reinsurers as American International Group (AIG), Munich Re, Hannover Re as well as Lloyd's Syndicates. Aviation Hull Reinsurance Agreement with an agreed maximum aircraft value of US Dollars 3 million came into effect at the same time. All conditions and terms of the Agreement are standard for the aviation insurance market.

Ukrainian airlines can now be insured to a higher quality at a lower prices and therefore be more competitive.

Ukrainian Rating Agencies and Publishing House "Galytski Kontrakty" have awarded BUSIN with a Diploma for effective branding in 2004. Their positive decision was based on financial success of our company.

BUSIN Ins. Co. was named Laureate of the Year 2005 in Aviation Insurance.

The National Program Ukrainian Financial Olimp named BUSIN the 2005 Laureate of the Year in Aviation Insurance. BUSIN received this recognition for significant contribution to the development of the Ukrainian Aviation Insurance Market.

An in-depth study and audit of the contenders' financial statistics and services provided were conducted by Advisory committee of Ukrainian Financial Olimp in two stages according to certain approved criteria. Its positive decision was also based on clients' favorable reviews and company's excellent reputation.

National Program Ukrainian Financial Olimp - special public organisation for the domestic financial market. The program's founders are the Association of Ukrainian Banks, the League of insurance organisations of Ukraine, the Association of Accountants and Auditors of Ukraine, Kiev National Economic University.

We are pleased that our efforts and results are recognised by experts, partners and clients.

According to the analysis of insurance companies' activity approved by the State Commission for Regulation of Financial Services Markets of Ukraine Decree of March 17, 2005 No.3755 financial statistics of JSIC Busin with a high 1.6 level and determined as financially stable.

Sponsorship
BUSIN Ins. Co. sponsored the Ukrainian national shooting team and provided financial support for training and participation in World Cup competition and in Olympic Games 2004 in Athens. As the result, in Athens the youngest world shooting champion Olena Kostevich won the gold medal in pistol shooting from 10 meters. We sincerely congratulate winner and wish her many sporting successes in future!

In order to develop close partnership with the representatives of Lloyds insurance market our company delegates specialists with good theoretical and practical skills in insurance and fluent English to attend trainings and seminars abroad. Almost all top managers have already studied London insurance market and this year our young but experienced specialists Irina Morozova and Sergey Deminsky attended two-week course in London (Great Britain) on the invitation of world-famous authorised Lloyd`s brokers - Willis Overseas Brokers Limited and AON Limited and therefore were awarded with international certificates.

Sergey Deminsky, Deputy Financial Director also attended course "Accounting and Financial Aspects of insurance" course covered topics such as: financial accounting, regulatory and supervisory framework in respect of insurance, organisations financial management, solvency of insurance organizations. As a result Sergey was awarded a certificate from the Chartered Insurance Institute (London). With the view to further improving their professional skills, other specialists of Busin Ins. Co. will also take part in such postgraduate courses in the future.

Joint-Stock insurance company BUSIN started insurance indemnity payments for an accident with an IL-76 plane from "Azov-Avia" which took place near Baku airport (Azerbaijan) on 04 th March, 2004.

Company has already paid the first insurance indemnity of 270'000.00 Ukrainian hryvnas for site clearance.

BUSIN will pay insurance an indemnity to the assured as well as insurance compensation to the families of the crew members who lost their lives in the accident and to the cargo's owner. According to the acting legislation insurance compensation will be paid not only to the families of these crew members but also to the four injured crew members who are disabled now and receive medical treatment.

8 Ukrainian insurers and insurance companies from Russia and Great Britain took part in the payment of the insurance indemnities on this accident. An investigation is being carried out by the company "Air Claims (CIS)".

According to the rating of League of the insurance organizations of Ukraine published in the magazine "Business" (No. 17 (588) from 26.04.2004) in 2003 Busin ranked second among leading Insurers of the Ukrainian insurance market. The level of BUSIN's claim payments exceed 56% whereas the average figure was 9,4%. BUSIN constantly demonstrates a high level of claim payments. So, in 2002 year BUSIN achieved 38,6% the average market level is 12,2%.

Specialists of BUSIN (both post-graduate students of National Aviation University) Irina Morozova and Ivan Ovchinnikov gave a series of lectures on "Insurance" for students of the "Economics and Business" faculty of National Aviation University.

Charities
BUSIN financed a programme for disabled children to increase the financial resources of "Life-School" - the first "family school" for disabled Ukrainian children.

Joint-Stock insurance company BUSIN increased their assets by 4 500 000,00 UAH to 10 125 000,00 UAH. A decision about the issue of 45 000 shares was made at BUSIN's Annual General Meeting of shareholders that took place on 26 November 2003. The company's assets were increased by dividend reinvestment.

Charities
Medicine
As a part of our annual programme of support BUSIN has sponsored the purchase of the medical equipment for Ternopol oncological clinic.
Culture
BUSIN sponsors the cultural-art welfare fund "Kyiv-Classic". The fund's aim is to revive Ukraine's sense of charity, culture, art and education as well as awareness of national culture.

On 26 November 2003 at 10 a.m. the General Meeting of BUSIN's shareholders took place at the address 23a, Klymenko Str., Kyiv, Ukraine. Questions for consideration were:

1. BUSIN's activity at the year 2003.
2. The shareholders committee report.
3. The inspection commission report on the results of financial and economic activity.
4. The approval of the procedure of profit distribution.
5. Elections of directors, shareholder committee and inspection commission.
6. Decision-making in respect of the increasing of the stature fund.
7. Changes and additions to the Statute and internal normative documents.

Payments of the first insurance indemnities for the Ukrainian Mediterranean Airlines accident, which took place in Turkey on 26^th May 26, 2003 were paid. On August 27, 2003 BUSIN paid insurance indemnity for the hull of the plane Yak-42 to the owners - Lebanese company J.T.R. for the sum of 2 million US dollars.10 Ukrainian insurers and more than 20 leading European reinsurers take part in the payment of the insurance indemnities. The insurance investigation was carried out by the company "Air Claims" (Great Britain). The Joint-Stock insurance company BUSIN with the support of legal company "Beaumont and Son" and its solicitors in Spain carry out legal aspects of the payments of the insurance indemnities in the view of the norms of international law.

On 29^th May 2003, an award ceremony for the winners of the "Insurance Internet of Ukraine, 2003" contest, organised by the League of Insurance Organizations of Ukraine, took place. BUSIN was pronounced the Winner in the category "Business Card".

Executive Committee of IUAI (International Union of Aviation Insurers) made a decision at its meeting on the 3^rd February 2003 and affiliated BUSIN as a member. IUAI was founded in 1934 in London. Now IUAI is acting as an International organisation and has 46 members from 30 countries - USA, Great Britain, France, Germany, Switzerland, Japan and other countries. IUAI is the main coordinator of the interests of International Aviation and Space Insurance markets' members. IUAI closely collaborates with International Air Transport Association (IATA), Joint Aviation Authorities (JAA), International Civil Aviation Organization (ICAO), ECAC, representatives of aviation authorities, supervision departments on insurance activity. This is the first Ukrainian insurer has been made a member og IUAI. The President of JSIC BUSIN said: "The fact that the BUSIN will represent the interests of the Ukrainian aviation insurance market internationally is a significant event for the whole Ukrainian insurance market".

JSIC BUSIN will celebrate its 10th anniversary in the restaurant "Empire" of the hotel "Premier Palace" on the 21^st February 2003.

The State Department of Aviation Transport of Ukraine (Ukraviatrans) jointly with the JSIC BUSIN gave a practical scientific seminar "Procedures and regulations of the providing obliged insurance of the civil aviation" on the 03rd December 2002 in National Aviation University (Kiev, Ukraine). Filonyuk O.F. (The president of the League of the insurance organisations of Ukraine, Zelenkov V.I. (head of the economic department of the Ukraviatrans), Nepochatova L.M (President of the JSIC BUSIN, PhD), specialists of the leading Ukrainian airlines and insurance companies participated in the seminar.

The centre of the training, retraining and informational-analytical provision of the insurance activity jointly with the League of the insurance organisations of Ukraine and the Department of financial organisations and markets of the Ministry of finance of Ukraine, with the help of the JSIC BUSIN carried out the seminar "Procedures and regulations of the providing obliged insurance of the civil aviation" devoted to adopting the Cabinet of the Ministers of Ukraine Decree No. 1535 dtd. 12/10/2002 on the 29^th October 2002.

The president of JSIC BUSIN addressed the meeting about the main differences between the Cabinet of the Ministers of Ukraine' Decrees Nos. 1535 and 1083 and about the particular features of the Rules of insurance of the International Insurance Market (Zurich Re 1983).

The scientific seminar on the subject "Investigation and prevention of air crash" was held in the Institute of post-graduate on the 29-30 May 2002. The seminar was organised by the State Department of Aviation Transport of Ukraine, the Aviation insurance bureau, with the help of JSIC BUSIN, JSC Avicos, JSIC Narodna.

The seminar "Insurance management of airlines and aviation enterprises" organised for the CEO, financial and commercial directors of airlines, economists and specialists performing obligatory aviation insurance, was given in National Aviation University (Kiev, Ukraine) on 3^rd - 5^th April 2002. The main objective of the seminar was to inform participants about the international standards of aviation insurance, changes to Insurance Law, the addendums and changes to the Decree of the Cabinet of the Ministers of Ukraine No 1083.