Although the Turkish insurance market has grown significantly in the last ten years, currently there is no locally established international reinsurance company in the market. Policies which are issued in Turkey are reinsured by global reinsurance companies with no establishment in Turkey. We believe that there is a need of another local reinsurance company in the market and VHV is willing to fill this need by establishing a subsidiary of VHV in Turkey and combining its global know-how and local experience in the Turkish insurance market. Since VHV Turkey is planning to establish and offer reinsurance services in Turkey rather than primary insurance activities, it differs significantly from other foreign Investments. VHV Allgemeine Versicherung AG (“VHV” or “VHV Germany”) has had a liaison office in Turkey for 3 years which has resulted in remarkable experience and overview regarding Turkish insurance market. As such, the Company is fully aware of the risks but also the potential and opportunities that the Turkish insurance market brings.