Net profit of RNRC in HY1 reaches RUB 1.1 billion

        Russian National Reinsurance Company has summarized its performance in HY1 2017.  Its written premiums under reinsurance contracts are RUB 3,024 million, which is twice as high as in Q1 of the current year. Its net profit is RUB 1,144 million.

        In the first 6 months upon the effective date of Federal Law no.363 “On amendment of the RF Law “On Insurance Business in the Russian Federation”, RNRC received 5,768 offers, 2,979 of which were accepted. Premiums under contracts, where the share of RNRC is more than 10%, constitute 35% of its insurance portfolio, which is 9 percentage points higher compared to Q1.

        The Company has formed a well-balanced insurance portfolio. Similar to Q1, the main share of the portfolio (63%) falls on Corporate Property Insurance including CAR and space risks. At the same time, the share of premiums for aviation risk insurance has increased in Q2 2017 from 5% to 15%.

        The share of broker sales channel in the total premium amount is 54%. Contracts with 115 ceding insurers (direct insurers) and 47 insurance brokers were made in HY1.

        The financial result of the insurance business regarding payments made (RUB 2.7 million) amounts to RUB 522.5 million. The operating expense ratio is 19%. The combined ratio (the main measure of profitability considering operating expenses) is 73% according to HY1 results (92% in Q1 2017).

        The investment income in HY1 amounted to RUB 1,063 million. The Company investment portfolio is mainly represented by public securities and debt securities of corporate issuers with high credit quality.

        “The performance of insurance business and the insurance portfolio structure have met our expectations. The underwriting approach and conservative investment policy enable the Company to obtain profit in its main businesses,” says Olga Krymova, Deputy Chairman of the Board of RNRC. “We also pay much attention to the building of effective business processes that enable us to minimize the increase of Company’s expenses with the ongoing growth of scopes and intensive development.”