RUSSIA: rating agency Expert RA affirmed the highest reliability rating of SBERBANK Life Insurance

19 July 2021 — Marina MAGNAVAL
The Expert RA rating agency has affirmed the financial strength rating of SBERBANK life insurance at ruAAA with a stable outlook. As noted by the agency, the rating was affected, among other things, by the high quality of the company's assets, high free capital and absence of a debt burden, the insurer said in a press release.

The company is the leader in the Russian life segment. The share of SBERBANK life insurance in the insurance market in 2020 was 6.9%, which, according to the rating agency's methodology, stands out as a supporting factor. Based on the results for 2020, the agency noted sufficient diversification of the company's insurance portfolio.

A positive impact on the rating of SBERBANK life insurance is also exerted by the high financial results: return on equity (59.1% in 2020), sales (26.3% in 2020) and investments (9.8% in 2020). The share of business expenses (19.2%), as well as the amount of remuneration to intermediaries, are at a low level and are assessed positively. Deviation of the actual solvency margin from the standard (89.2% as of March 31, 2021) and high free capital are also mentioned among the positive factors, according to the press release.

According to Expert RA, SBERBANK life insurance has an adequate quality of management, strategic support, and financial planning. The company's assets as of March 31, 2021, amounted to RUB 566.2 billion (EUR 6.38 billion*), equity - RUB 48.3 billion, charter capital - RUB 450 million. The company was first assigned a national credit rating in 2014.

SBERBANK Life insurance provides risk, accumulative and investment life insurance services. The company is the leader on the Russian life insurance market and has a national rating under RAEX scale (Expert RA)- ruAAA.

* at the following exchange rate:

1 EUR = 88.7452 RUB (01.04.2021)

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