STATISTICS: RUSSIA, 1H2022: market down by 3.57% y-o-y in local currency and nominal terms

22 September 2022 —
STATISTICS: RUSSIA, 1H2022: market down by 3.57% y-o-y in local currency and nominal terms
At the end of 1H2022, the market amounted to RUB 862.25 billion (EUR 16 billion), having decreased by 3.57% y-o-y in local currency and nominal terns. Considering the 15.9% y-o-y inflation rate, the inflation adjusted results show an almost 17% y-o-y fall in GWP.

It should be noted that in euro the result was, on the contrary, positive due to strengthening of the ruble - the market grew by 54.34%.

Both life and non-life insurance declined, according to data published by the Central Bank. In Q2, the trends of the previous quarter continued in the main market segments. The maximum decline occurred in the investment life insurance, credit life and health insurance due to a decrease in lending activity and a drop in demand for financial alternatives to deposits after a sharp rise in interest rates. The decline in the insurance market was mitigated by growth in motor insurance and voluntary health insurance.

At the end of June 2022, paid claims increased by 9.93% to RUB 422.68 billion. The increase in paid claims was supported by life insurance.

According to the 1H2022 results, the profit of Russian insurers fell by 62% y-o-y, to RUB 46.1 billion, while insurers suffered losses in the second quarter. It happened due to a negative result of investment activity. By the end of the first half, insurers' losses from investment activities amounted to RUB 130.8 billion. The reason for the losses was negative revaluation of foreign exchange assets against strengthening of the ruble. Nearly three-quarters of the decline in investment performance was attributable to life insurers.

The results from insurance operations, on the contrary, grew. As a result of the reduction in profits, profitability of insurance companies also decreased slightly, but remained at a high level. The return on equity in the first half of 2022 was 17.4%, while the return on assets was 4.0%. Total assets of insurers at the end of June 2022 amounted to RUB 4.3 trillion, equity capital - to RUB 1.0 trillion.

The number of insurance companies for the second quarter of 2022 decreased by 2 to 144. At the same time, concentration of the Russian insurance market has intensified. The share of the top 20 insurers on the market reached 87.6% (+1.4 p.p. y-o-y), according to a press release from the Central Bank.

Access and download the latest Russian insurance market statistics for 1H2022

* 1 EUR = 53.8580 RUB (June 30th, 2022)