RUSSIA: 89% of insurers made profit by the end of June

10 September 2020 — Marina MAGNAVAL
At the end of the second quarter of 2020, the profit of the insurance sector has grown, and return on equity has become the highest over the past three and half years (33.7%), according to the report of the Bank of Russia.

Despite growing unprofitability and volatility of the stock market, the profit of insurers increased by 21.2%, to RUB 149.1 billion (~EUR 0.19 billion), which is due to increase in their income from investment activities. At the same time, it should be noted that the results from insurance activities, on the contrary, dropped y-o-y.

89% of local insurers ended 1H2020 with profit (150 out of 169 companies on the market), while a year ago the same result was 81%. By the end of June 2020, total capital of insurers reached RUB 870.1 billion, and total amount of assets exceeded RUB 3.6 trillion.

In 1H2020, concentration of insurers by assets increased - the share of TOP-20 by assets amounted to 80.1%, which was facilitated by a decrease in the number of insurance companies by 10% y-o-y. At the same time, the share of TOP-20 in terms of GWP also grew to almost 85% (+2.2 p.p. per year).

* for the following exchange rate:
EUR 1 = RUB 78.9929 (as of July 1st, 2020)

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