STATISTICS: RUSSIA, FY2023: net profit at the end of the year almost doubled

17 April 2024 — Marina MAGNAVAL
STATISTICS:  RUSSIA, FY2023: net profit at the end of the year almost doubled

In 2023, the insurance market grew by a quarter to RUB 2.28 trillion (EUR 23.03 billion). The growth drivers in life insurance were all main types, including investment, accumulative and credit insurance, while in non-life insurance – motor segment, follows from data published by the Central Bank.

The Central Bank in its review of key indicators of insurers' performance notes that GWP growth was also facilitated by the expansion of demand: the number of concluded contracts increased, primarily due to a rise in contracts with individuals.

The growth in accumulative and investment life insurance was supported by active sales, growth in disposable income of the population, as well as expectations of high profitability. An increase in the borrower life insurance market was supported by increased lending activity.

The rise in prices for cars and spare parts and, therefore, an increase in the MTPL cost contributed to a GWP increase in the segment. Increasing demand for inexpensive policies with deductibles and mini-casco has led to an increase in the Motor Hull market. At the same time, the dynamics of motor insurance was positively influenced by a significant increase in sales of new cars due to the pent-up demand and expansion of supply.

Total paid claims in 2023 amounted to RUB 1 trillion (+16.92%)/EUR 10.52 billion. It is worth noting that in euros, both in GWP and paid claims the result was negative.

The net profit of the insurance market at the end of 2023 almost doubled, which led to an increase in profitability. The main contribution was made by an increase in income from investment activities due to a positive revaluation of assets denominated in foreign currency against the backdrop of a weakening ruble.

Profitability increased last year amid a significant increase in profits. Return on assets amounted to 6.5% (+2 p.p.), return on equity – 24.8% (+5.2 p.p.). The total equity of insurers reached RUB 1.4 trillion (+23.9%). The amount of insurance reserves is RUB 3.3 trillion (+12.1%), primarily thanks to non-life insurance.

SOGAZ remains the market leader in terms of premiums, although its market share decreased from almost 17% a year earlier to 13%. SBERBANK Life Insurance ranks second by a small margin - the company's market share has grown by more than 3% over the year. AlfaStrakhovanie rose to third place, moving INGOSSTRAKH down to fifth.

Access and download the latest Russian insurance market statistics for 2023 in EUR and RUB.