STATISTICS: RUSSIA, 1Q2023: total profit of Russian insurers almost tripled

21 June 2023 — Marina MAGNAVAL
STATISTICS:  RUSSIA, 1Q2023: total profit of Russian insurers almost tripled
In 1Q2023, the market significantly grew y-o-y. This was largely due to the low base effect, since in February-March 2022 the external conditions for the Russian economy deteriorated sharply, which led, among other things, to a significant decrease in activity in the insurance market and a GWP reduction at the end of 1Q2022, the Central Bank notes in its review.

Total GWP increased by 21.24% to RUB 548.4 billion (EUR 6.52 billion). Growth was observed in almost all major types of insurance. The maximum increase was in credit life and health insurance, as well as in accumulative life insurance.

The dynamics was significantly affected by increased activity in the retail lending segment, remaining high savings trends and active operation of insurers in the accumulative life insurance segment, an increase in demand for motor hull insurance and an increase in the MTPL cost against the backdrop of an increase in the price of cars and spare parts.

The growth in paid claims in 1Q2023 was comparable to the GWP dynamics (+21.9%) and amounted to RUB 245.4 billion (EUR 2.92 billion), of which 45% accounted for paid claims under investment life and accumulative life insurance contracts. An increase in paid claims was observed in all major market segments, except for insurance against accidents and diseases.

At the end of the quarter, total profit of Russian insurers almost tripled to RUB 136.9 billion. The improved result from insurance and investment activities contributed to the increase in profits in almost equal proportions. The increase in profit from insurance activities was due to the growth of the financial result from non-life insurance against the background of an increase in the earned insurance premium. The results from investment activities of insurers increased mainly due to operations with financial instruments.

As a result of the increase in profits, profitability of insurance companies increased, amounting to 27% (+1.5 pp y-o-y), return on assets - 6.5% (+0.7 pp). At the end of March 2023, total equity of insurers exceeded RUB 1.2 trillion, the amount of insurance reserves increased by 2.8% to RUB 3 trillion thanks to non-life insurance reserves. The size of insurers' assets also increased - up to RUB 4.7 trillion.

The number of insurance companies for the quarter decreased by 4 to 136 at the end of March 2023. At the same time, concentration of the Russian insurance market increased - the share of the top 20 insurers in terms of premiums reached 89.2%. SOGAZ remains the market leader (RUB 95.48 billion) with a market share of over 17%, followed by SBERBANK Life Insurance and SBERBANK Insurance.

Access and download the latest Russian insurance market statistics for 1Q2023 in EUR and RUB.