According to the rating agency, in 2020 the company retained its leading positions in the insurance market and showed a high level of profitability and capitalization - profit amounted to approximately RUB 26 billion (~EUR 0.28 billion*), and equity after dividend payment - about RUB 197 billion (~EUR 2.17 billion). It is expected that in 2021 SOGAZ will maintain high performance efficiency and its leading market positions, according to the NKR forecast.
SOGAZ is the leader of the Russian insurance market - in 2020 the company's share in the non-life sector exceeded 26%. Since 2016, SOGAZ has been ranked first in terms of GWP in non-life insurance. For example, in accidents insurance its share is about 48%, in voluntary health insurance - about 36%, in property insurance of legal entities - over 53%. In MTPL and Motor Hull SOGAZ is one of the six largest insurers in Russia.
The company's operating efficiency in 2020 was high: the return on equity (ROE) was about 14%, the combined loss ratio (CLR) was about 91%. GWP growth rates significantly exceeded the market average due to the structuring of the business previously written under VTB Insurance. "We believe that the potential for GWP to increase, due to the business flow between the two companies, was mostly exhausted in 2020. NKR expects that in 2021 the growth rates of SOGAZ at the non-consolidated level will correspond to the market average, CLR will be in the range of 91-93%, and ROE will remain at the level of 2020. As in the previous year, in 2021 SOGAZ plans to pay dividends, which, according to NKR estimates, will amount to about RUB 8.5 billion", the NKR press release says.
Diversification of the insurer's business is assessed by the agency as moderately high. The share of the largest segment (accidents insurance) in the insurance portfolio was about 34%, and the largest client group - the Gazprom structure - accounted for about 4% of the GWP. The share of controlled sales channels is consistently high (over 80% of GWP at the end of 2020). The regional network of the company includes over 90 branches.
NKR assesses the investment policy of SOGAZ as low risk, since assets with a high level of risk, calculated according to the NKR methodology, make up about 19% of the equity, adjusted for investments in subsidiaries and associated companies. At the end of 2020, the insurer's overdue accounts receivable decreased by about 37%.
* at the following exchange rate:
1 EUR = 90.6824 RUB (December 31st, 2020)
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