DCG IRIS Limited Event Report: Floods in South Eastern Europe (7007H)

TIDMIRIS

RNS Number : 7007H

DCG IRIS Limited

21 May 2014

DCG IRIS LIMITED

Event Report: Floods in South Eastern Europe, May 2014

The Company today received the following report from Credit Suisse AG ('Credit Suisse'), the investment manager of CS IRIS Low Volatility Plus Fund Limited (the 'Master Fund'), in which the Company invests substantially all of its assets.

Opinions expressed in the report are those of Credit Suisse AG.

"Last week, low pressure system Yvette (named Tamara in Serbia) caused the heaviest rainfall in a century in many of the Balkan countries, with Bosnia and Serbia worst affected. Three or even four months' worth of rain fell in just three days, leading to heavy flooding along rivers as well as landslides. More than 50 people have already been reported dead across the Balkans with the number expected to rise. Many towns and villages are cut off and without electricity. Flooding has been exacerbated by heavy rain in early May, the effects of which had not yet fully receded.

In Bosnia, almost a third of the country is flooded, mainly in the northeast, as many rivers, including the Sava, Drina and Bosna, have burst their banks. In central Serbia, the Sava and Drina rivers (downstream from Bosnia) have also burst their banks. Both countries declared states of emergency and several European countries, as well as Russia, have sent rescue teams to the region together with equipment such as pumps and boats. Romania, Slovakia and Croatia have also been affected by flooding, albeit to a lesser degree.

Rainfall has eased since last weekend and some river levels have started to recede. However, water levels downstream will most likely continue to rise in some regions, especially along the Blue Danube river into which most Serbian rivers drain. This could impact countries downstream from the Blue Danube river, especially in Romania and Bulgaria.

In Bosnia and Serbia, heavy infrastructure damage has been reported as roads, bridges and railway tracks were damaged by floods and landslides. In Bosnia, 100,000 homes are expected to have been damaged or destroyed, and also more than 200 schools and hospitals. Serbian government officials have put the preliminary economic damage at EUR 1.0 billion ($1.4 billion) but these estimates could rise further. The economic damage in Bosnia is likely to be higher given the larger extent of the flooding. However, flood insurance penetration is relatively low in the Balkan region and as a result insured losses are likely to remain low.

The CS IRIS Low Volatility Plus Fund has a small exposure to catastrophe risks in Eastern Europe, and based on current loss estimates we do not expect an impact on performance.

We will keep you updated of any significant developments. Please do not hesitate to contact us if you have any questions."

For further information please contact:

Dexion Capital (Guernsey) Limited

+44 (0) 1481 743940

Christopher Copperwaite

Dexion Capital plc

+44 (0) 20 7832 0900

Robert Peel

Media Enquiries:

Anthony Payne and Max Hilton

Peregrine Communications

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