RUSSIA: returns under accumulative insurance contracts of SBERBANK Life insurance in 2019 reached 8.15%

3 July 2020 —
At the end of 2019, returns on investments under accumulative life insurance contracts of SBERBANK Life insurance amounted to 8.15% for policies denominated in rubles and 3.62% for policies denominated in dollars, the insurer said in its press release.

The company invests funds under accumulative life insurance contracts in reliable financial instruments, making additional investment income for customers. Insurance reserves under the company's accumulative life insurance contracts, valid at the end of 2019, exceeded RUB 60 billion (~EUR 0.86 billion*). 76% of the reserves were placed in long-term government bonds and the remaining funds were invested in bonds of corporate issuers.

Aleksey LEONENKO, general director of SBERBANK Life insurance, noted that "returns, announced for 2019, significantly exceed both the inflation rate and the average rate on deposits of large banks, which, according to the Central Bank, in the first decade of June amounted to 5.01%".

SBERBANK Life insurance has been offering accumulative life insurance since 2012 and annually distributes investment income based on actual return on its portfolio. At the end of 2018, announced investment return rates were 7.1% for accumulative life insurance policies in rubles and 3.4% - for policies denominated in dollars. The company is the leader on the Russian life insurance market and has a national rating under RAEX scale (Expert RA)- ruAAA.

* 1 EUR = 69.3406 RUB (December 31st, 2019)