RUSSIA: despite the loss in motor insurance, ROSGOSSTRAKH Group's net profit remained at the level of RUB 7.62 billion

23 March 2021 — Marina MAGNAVAL
Net profit of the ROSGOSSTRAKH group in 2020 amounted to RUB 7.62 billion (~EUR 84 million*), which is only 0.7% less y-o-y in local currency, reports ASN, referring to the financial statements published by the company.

The financial statements show that in 2020 ROSGOSSTRAKH received a loss in motor insurance in the amount of RUB 2.27 billion (including all voluntary and mandatory types) vs a net profit of RUB 5.60 billion in 2019. The ROSGOSSTRAKH Group noted that the profitability of the key motor insurance segment, MTPL, is mainly influenced by legal and economic risks.

As explained in the financial statements, the negative result is associated with an increase in paid claims (up to RUB 21.5 billion) and the changes in reserves for losses, as well as with the growth of operating and administrative expenses and a decrease in investment income in part of motor insurance, compared to 2019, according to the director of insurance ratings of the National Rating Agency Tatiana NIKITINA.

At the same time, the level of the group's final net profit remained almost at the level of 2019 thanks to an increase in net profit in personal insurance (+217.4%), property and liability insurance (+799%), life insurance (+311%).

The group includes a non-life insurer - ROSGOSSTRAKH, which ranked 5th in the non-life insurance market at the end of 2020, and a life insurer ROSGOSSTRAKH Life (5th place in the life insurance ranking). GWP of the parent company in 2020 increased by about 10%, and the life insurer - by 45%.

The equity of the ROSGOSSTRAKH Group at the end of 2020 amounted to RUB 48 billion, assets reached RUB 187.7 billion, insurance reserves amounted to RUB 109 billion, and investment income amounted to RUB 8.5 billion.

* at the following exchange rate:

1 EUR = 90.6824 RUB (December 31st, 2020)

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