STATISTICS: RUSSIA, 3Q2023: net profit of insurers more than tripled

18 December 2023 — Marina MAGNAVAL
STATISTICS:  RUSSIA, 3Q2023: net profit of insurers more than tripled

The insurance market ended 3Q2023 with RUB 1,646.73 billion (~EUR 16.13 billion), which is 24% more y-o-y in rubles. However, in euro, the market decreased by about 32% due to a sharp change in the exchange rate compared to a year earlier. Paid claims reached RUB 758.86 billion/EUR7.43 billion (+17% in rubles), as follows from data published by the Central Bank.

In its review of key performance indicators of insurers, the Central Bank notes that in the third quarter of 2023, the growth of the insurance market continued. An increase was observed in all key segments. The main driver was motor insurance due to the expansion of the customer base, increasing costs of cars and rising prices for spare parts. A noticeable impact on the market dynamics was exerted by accumulative and investment life insurance, which was supported by an increase in the disposable income of the population. The demand for corporate voluntary health insurance has increased significantly, which may be due to the desire of employers to increase their attractiveness in the labor market.

The efficiency of insurance activities continues to grow, supported by accelerated growth in premiums earned relative to losses and expenses. Based on the 9M2023 results, the business expenses ratio decreased to 40.4%, the loss ratio - to 48.8%, as a result, the combined loss ratio decreased to 89.3%.

At the end of 9M2023, the net profit of Russian insurers increased by more than 3 times y-o-y, to RUB 382.2 billion. The profit growth was supported by investment activities. Total insurers' assets in the third quarter of 2023 increased by 4.2%, to RUB 5.1 trillion. Total equity increased to RUB 1.4 trillion. Total insurance reserves amounted to RUB 3.1 trillion. As a result of the rapid increase in profits in the period under review, the profitability of the insurance market increased again: return on equity amounted to 35.5% and return on assets reached 9.2%.

The leader in terms of GWP is SOGAZ, the company's market share is 14%. SBERBANK Life Insurance ranks second (with almost 12%). It's worth noting that only these two companies have double-digit market share.

Access and download the Russian insurance market statistics for 3Q2023 in euros and rubles.