LETTER OF NATIONAL BANK OF THE REPUBLIC OF KAZAKHSTAN

of February 5, 2015 No. 11-1-06/149

The National Bank of the Republic of Kazakhstan (further National Bank) reports that on December 24, 2014 Board of National Bank the resolution No. 244 "About modification and amendments in some regulatory legal acts of the Republic of Kazakhstan concerning the official listing of securities of stock exchange" within which entering of the following changes and amendments into the Instruction No. 1311 is provided is accepted:

reduction of the list of the highly liquid assets and assets calculated taking into account their classification by quality and liquidity in compliance with the new listing requirements which entered since January 1, 2015 (the new listing requirements on the stock exchange providing simplification of sectors of "share" and "debt securities" of structure of the official listing of stock exchange by combination of categories of these sectors and exception of the requirement for availability of rating assessment are introduced);

exception of discounting of the highly liquid assets and assets calculated taking into account their classification by quality and liquidity i.e. weighing of all assets on 100% of book value;

use of rating assessment or value of the standard rate of sufficiency of actual margin of solvency of the overcautious person for date of the conclusion of the agreement of reinsurance, during the term of the agreement reinsurance, but no more than 12 (twelve) months;

decrease in rating requirements for the agreements of reinsurance signed with overcautious persons of member countries of the Agreement on the Eurasian Economic Union when calculating increase in the minimum size of margin of solvency or guarantee fund.

The specified resolution No. 244 becomes effective after 10 calendar days after day of its first official publication and extends to the relations which arose since January 1, 2015.

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1) the resolution of Board of the Agency of the Republic of Kazakhstan on regulation and supervision of the financial market and the financial organizations of August 22, 2008 No. 131 "About approval of the Instruction about establishment of prudential standard rates and other regulations and limits, obligatory to observance, for the insurance (reinsurance) organization and insurance group, including the minimum sizes of the authorized capital, guarantee fund, margin of solvency and terms of submission of reports on accomplishment of prudential standard rates"

Based on the above, being guided by article 70 of the Law of the Republic of Kazakhstan "About National Bank of the Republic of Kazakhstan", we report about need of submission by the insurance (reinsurance) organizations to National Bank of calculation of prudential standard rates (Appendices 1, 2, 3, 4, 5 and 6 to the Instruction No. 131), since reporting date as of February 1, 2015:

1) on paper and in electronic format by means of automated workplace "Report generation of SO AIP "Insurance supervision" taking into account the changes made by the Resolution No. 244;

At the same time, it is in addition necessary to reflect information on the following signs in appendix 5 to the Instruction No. 131:

- "The amount of increase in the minimum size of margin of solvency or guarantee fund on the amount transferred (transferred) in reinsurance obligations of the reinsurance organization falling in group 14 according to appendix 1 to this Instruction" (8085-10);

- "The amount of increase in the minimum size of margin of solvency or guarantee fund on the amount transferred (transferred) in reinsurance obligations of the reinsurance organization falling in group 15 according to appendix 1 to this Instruction" (8085-11);

- "The amount of increase in the minimum size of margin of solvency or guarantee fund on the amount transferred (transferred) in reinsurance obligations of the reinsurance organization falling in group 15 according to appendix 1 to this Instruction" (8085-12);

- "The amount of increase in the minimum size of margin of solvency or guarantee fund on the amount transferred (transferred) in reinsurance obligations of the reinsurance organization falling in group 17 according to appendix 1 to this Instruction" (8085-13).

2) on paper according to the existing Instruction No. 131.

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