UKRAINE: for 9 months in 2018 insurance reserves went up by 15% y-o-y

Insurance reserves of Ukrainian insurers as of the end of September amounted to UAH 24.8 billion (+15% y-o-y; ~EUR 748.6 million), according to the member of the National financial services committee of Ukraine, Alexander ZALETOV.

He believes that the driving factors of such improvement are the total increase of insurance services volume and development of the actuarial evaluation of insurance obligations after the National financial services committee introduced actuarial report on insurance companies into the prudential supervision.

As of 30.09.2018 the biggest parts in the structure of insurance reserves were formed by bank current accounts and deposits (52.8%), as well as domestic government bonds (28.6%), followed by rights of claim to non-resident reinsurers (9.3%) and real estate (4.8%). Insurers' investments in stocks and corporate bonds amounted to only 1.5% of their insurance reserves.

As ZALETOV pointed out, the most dynamic volume growth was recorded by investments of insurance reserves in domestic government bonds (+26.3%), bank deposits (+12.6%) and rights of claim to non-resident reinsurers (+23.3%), which, according to him, was mainly related to the new requirements for the placement of insurance reserves, provided by the Regulation on mandatory criteria and standards for capital adequacy and solvency, liquidity, profitability, asset quality and riskiness of insurers' operations, approved under the order of the National financial services committee on June 7, 2018, that entered into force in August 2018.

This change of regulatory base contributed not only to strengthening of insurers' solvency, but also to the growth of investment returns (+15.4% y-o-y), as informed Interfax-Ukraine.

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