According to the 2Q results, GWP growth rate in Motor Hull amounted to 34.3% y-o-y, and GWP volume reached RUB 48.6 billion (EUR 0.56 billion*). As the regulator notes, this growth was supported by an increase in sales of new cars, as well as an increase in the cost of insurance policies - average insurance premium during last 12 months increased by a third, although the number of concluded contracts remained practically unchanged (+1.2%). The increase in the average premium is largely due to the rise in car prices. In addition, the share of contracts of legal entities and individual entrepreneurs expanded, the average insurance premium for which is approximately twice higher than that for retail clients.
Paid claims in 2Q increased by 37.2% y-o-y, to RUB 27.8 billion, which was facilitated by the effect of restrictive measures a year ago. The growth in paid claims in April-June was also facilitated by an increase in the average insurance paid claim amount due to the growth in the cost of spare parts for foreign cars following weakening of the ruble.
The loss ratio for Motor Hull in 2Q grew to 49.5%. The combined loss ratio also increased (to 85.6%), but is still below 100%, which indicates the profitability of this type of insurance.
MTPL segment also increased - by 5.3%, amounting to RUB 59.5 billion (EUR 0.69 billion*). The regulator explained this growth by an increase in the number of concluded contracts. Due to an increase in the number of insured events, MTPL paid claims grew faster than premiums as well (+22.1%), although the average payment declined (-4.9%). The combined loss ratio increased to 95.5%, which is the highest value in the last year and a half.
* at the following exchange rate:
1 EUR = 86.5118 RUB (01.07.2021)
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