Dear Ladies and Gentlemen,
2017 was a year of many challenges for the SELECTA group of companies.
As we have represented previously, our Moscow, Russia based company, SELECTA Insurance and Reinsurance
Company Ltd, suffered significant pressure and interference from the regulatory authorities during
the course of last year, albeit the Russian Regulator subsequently admitted that SELECTA/Moscow was
ultimately solvent and none of the originally suggested actions against the company were enforced or
deemed to be enforceable.

Furthermore, additional pressures on Russia itself from the World’s leading financial jurisdictions and collective
organizations, created further obstacles to the Group to continue operating from within Russia.
In order to continue normal market operations, SELECTA /Caribbean has had to accept responsibility for
future claims on business originally transacted by SELECTA /Moscow due to the uncertain nature and
longevity of the due process to release the assets of SELECTA /Moscow with the Russian authorities. That
process is still ongoing at present as we continue to record signs of recovery and stabilization of the
overall operations of the Group and will continue to impact on our overall activities for a little while to
come.

As a result of these issues and as at December 31, 2017, we had very limited capacity within our Caribbean
entity. However, we believe that the Group as a whole has now stabilized its financial position and
is currently in the process of extending its capital base still further and collateralize our book of business.
We would wish to take this opportunity to thank our many trading partners and clients across the Globe
for your invaluable support and loyalty through these difficult times and very much look forward to consolidating
those valued relationships moving forward.
Kirill Patyrykin
Managing Director