RUSSIA: profitability under universal life insurance of SBERBANK Life insurance exceeded inflation level and average deposit interest rates

Based on 2017 results announced investment profitability rates under universal life insurance policies (ULI) amounted to 8.7% for policies with insurance amounts in rubles and 5.19% - for policies in USD. Thus, profitability under ULI exceeded the level of inflation and average deposit interest rates.

High profitability, exceeding inflation level and average deposit rates (in 2917 inflation level was 2.5%, and average deposit rates amounted to 6.8%), was generated mainly due to the investment strategy of SBERBANK Life insurance aimed at maximal effective placement of insurance reserves in highly reliable, liquid financial instruments: government debt securities and bonds of the largest corporate borrowers.

According to the Financial director of SBERBANK Life insurance Maksim EROFEEV "ULI is becoming more and more profitable. This is one of the few existing instruments allowing to provide guaranteed income rate for a period of 20 years and even more". EROFEEV believes that in the context of the continuing fall of average deposit rates, ULI provides a guaranteed level of return of 3% for 20 years ahead.

SBERBANK Life insurance is the leader of the Russian life insurance market, included into TOP-5 Russian biggest insurers.

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