In the total profit structure, the share of net income from insurance activities decreased, while the share of investment activities increased, according to the review of key performance indicators of insurers published by the Central Bank.
Dynamics of the profit structure of Russian insurers (%)
Source: Bank of Russia
The profitability of insurers slightly decreased due to the growth of assets and capital but remained the highest among other segments of the financial market, the regulator notes. The return on equity in 2020 was 28.7%, on assets - 6.8%, and the return on equity significantly outstrips the profitability of the banking sector.
The capital of insurers at the end of 2020 amounted to RUB 876.3 billion (+ 8.1% y-o-y), assets - to RUB 3.8 trillion (+ 14.3%). The deviation of the actual solvency margin from the standard was 1.99 at the end of 2020 (vs 1.85 in 2019).
The annual reduction in the number of insurance companies by 18 to 160 companies at the end of 2020 led to only a slight increase in market concentration, since just small companies left the market. The share of TOP-20 insurers in terms of assets amounted to 80.3% (+0.3 pp), while the share of TOP-20 in terms of premiums increased to 84.9% (+2.3 pp), the regulator reports.
* at the following exchange rate:
EUR 1 = RUB 90.7932 (as of 01.01.2021)
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