RUSSIA: 55 thousand of new clients purchased investment life insurance (ILI) policies from SBERBANK Life Insurance in 1H
54.9 thousand of new clients purchased ILI policies (+79%). Among them 88% of clients are men and women over 40 years old, 8% - of age between 30 and 40 and 4% - young people under 30. Average cost of the product in the first half year of 2018 amounted to RUB 672 thousand (+25% than a year ago).
For the first 6 months SBERBANK Life Insurance paid RUB 1.3 billion under endowment policies (less than 1% of the total insurer's ILI portfolio). Also in the first half year the company's clients made payments of additional investment income under ILI in the total amount of RUB 1.6 billion.
Average actual fixed investment return on all liabilities of the company paid to clients under ILI amounted to 13.8%.
"ILI is demonstrating the highest growth rate, better than any other segment of life insurance and Russian insurance market in general. We expect the same growth for the whole year as well. But penetration degree of investment and universal life insurance products in the deposit base of SBERBANK is from 2% to 7%, which is really low compared to the developed countries with such figure of 50%. The most perspective area for SBERBANK Life Insurance in terms of growth is mass segment with over 13 million of potential clients. The product for this segment is ready and is being offered in pilot mode since June 2018", pointed out Boris BORZUNOV, senior investment analyst of the company.
SBERBANK Life Insurance is the leader of the Russian life insurance and is the second biggest company of the general insurance rating of Russia. The insurer's rating under RAEX ("Expert RA") is ruAAA.
*EUR 1 = RUB 72.9921 (as of 30.06.2018)