CASCO tops the list of insurers’ profit makers in 2016 H1

CASCO-insurance results showed almost a three-fold growth against the corresponding period in 2015 with a combined loss ratio reduction from 88.8% in 2015 to 61.6% in 2016 H1.

In general, the insurance-type result structure over the period under review significantly changed. Last year, it was topped by such types as insurance of legal entities’ property (22%), accident insurance (18%) and life insurance (13%). As of 2016 H1 end, the leading positions in terms of insurance results are taken up with motor insurance (25%), insurance of legal entities’ property (16%) and life insurance (13%). Insurers’ profits as of 2016 H1 end totalled 71.8 billion rubles which is by 20% higher than in the corresponding period in 2015 (60.3 billion rubles).

The year-on-year combined loss ratio which is indicative of insurance efficiency across the board in the market fell to 90.7% by 2016 Q2 end against 98.3% in last year’s corresponding period.

Total insurers’ capital remained at 2016 Q1 end level (439.6 billion rubles) with 6.6% annual capital increase. The year-on-year capital return totalled 31.1%.

Insurance reserves grew to 1,067.7 billion rubles with other than life insurance types traditionally accounting for the lion’s share (74%) of the total.

The debt load of Russian insurers after a drastic reduction at the end of 2015 is still stable, according to the review. In 2016 Q2, borrowed resources accounted for 5.1% of the capital against 8.6% as of the end of 2015 Q2.

Overall volume of Russian insurers’ assets grew by 9.5% over the last year and totalled 1,736.0 billion rubles. It is noteworthy that assets’ share in GDP slowly grows, and at 2016 Q2 they accounted for 2.1% of GDP (against 2.0% last year). The assets structure mostly remained the same. For example, bank deposits, accounts receivable and bonds still remain essential assets’ constituents. They account for 24.0%, 19.5% and 16.1% of overall assets respectively.