RUSSIA: insurers' profit in 2018 grew by almost 70%
In the survey, the Bank of Russia mentioned increasing insurer investment income and decreasing unprofitability and expenses as the main growth factors.
Last year, the main change in the structure of insurer assets was an increase in the share of state and municipal securities (to 19.9%), supported by growing GWP of investment life insurance. Market GWP went up by 15.7% (the maximum figure for the last 6 years), as the Central Bank noted, due to high demand for loans and, accordingly, increased insurance against accidents and diseases, as well as motor insurance. In 2018, qualitative changes in motor insurance contributed to the growth of MTPL and Motor Hull.
RESO Group, the parent company of RESO-Garantia, ranked 5th in the market in terms of GWP, increased net profit by 71% to RUB 26.7 billion in 2018. The group's equity increased by RUB 24 billion. Insurance revenue exceeded RUB 24.8 billion, and investment revenue went up almost 3 times, ASN reported.
"Last year was a successful one for the companies of RESO Group. Our profit grew, thanks to the steady increase of GWP without reducing the efficiency level, as well as investment income. Our loyal and professional agent network, which, according to the Bank of Russia, is the largest in the country (about 30 thousand agents), remains the main sales channel. We should also note a significant growth of the partner insurance sales channel," said the General Director of RESO-Garantia, Dmitry RAKOVSCHIK.
*EUR 1 = RUB 79.4605 (31.12.2018)