The main causes of this negative trend were the decline of reinsurance inside the country (by 40.4% or UAH 2.32 billion) and a reduction of transactions with non-resident insurers (by 13.5% or UAH 710 million), in particular with Russia.
Moreover, in 1H2014, Ukrainian insurers reinsured risks in Russia in the amount of UAH 157 million, which is with 41.9% less compared with 1H2013 (UAH 270.2 million). In the reporting period, Russia's share in the total volume of reinsurance for non-residents has gone down to 22.1% from 32.9%, according to the report by the State Commission for Regulation of Financial Services Markets of Ukraine.
In 2013, almost 50 Ukraine insurers cooperated with Russian reinsurers. More than 20 of the Russian reinsurers accepted risks from Ukraine. The largest players in this market are SOGAZ with a share of accepted Ukrainian risks of 25.2%, INGOSSTRAH with 24.4%, ALFA Insurance with 12.3%, VTB with 9.1%, UNITY Re with 9.6%, SCOR with 3.5% and RUSSIAN Re with 3.2%.
In general, Ukrainian insurers reinsured risks in 13 countries, in particular in Germany (24.3%), the UK (15.6%), Switzerland (12.3%), Austria (6.6%), France (3, 7%), the USA (2.2%) and the Czech Republic (2.1%).
In Germany, the amount of reinsurance increased by 9.2%, to UAH 172.7 million, and the share of this country in the total volume of the Ukrainian reinsurance market for non-residents increased from 19.2% (in the first half of 2013) to 24.3%, states Interfax Ukraine.
In addition, in the reporting period insurance claims paid by resident reinsurers decreased by 19.6% and those paid by non-residents - by 5.5%.