ROSNO Group Doubles Operating Profit in 2009
OREANDA-NEWS. March 30, 2010. ROSNO Group is publishing consolidated financial performance results for the 12 months of 2009, prepared under IFRS (preliminary non-audited data). According to financials for the year, ROSNO Group earned 213% more operating profit than in the previous year. The Group’s net profit reached 839 million roubles, indicating a considerable improvement of financial performance against the net loss of 2,306 million roubles in the 12 months of 2008. The results achieved in the 12 months of 2009 fully conform to the Group’s portfolio optimization and profitability improvement strategy.
Major financials of ROSNO Group
The performance results for the 12 months of 2009 reflect the profitable growth strategy of ROSNO Group. In the 12 months of 2009, ROSNO Group’s operating profit grew by 213% to 1,346 mln. roubles, which is 916 mln. roubles more than over the same period of the previous year.
Contribution of ROSNO companies to operating profit | |||
|
Operating profit, mln. roubles |
Growth, mln. roubles | |
|
2009 |
2008 | |
IC ROSNO |
1273 |
1263 |
10 |
IC Medexpress |
27 |
104 |
-77 |
IC Allianz |
-136 |
-391 |
255 |
AMC Allianz ROSNO Asset Management |
64 |
-153 |
217 |
Other subsidiaries |
118 |
-393 |
511 |
Total |
1346 |
430 |
916 |
In Q4 2009, the secured yield of motor insurance portfolio and ROSNO’s increasing business profitability caused the combined non-life insurance ratio to decrease to 96.8% (vs. 98.7% in Q4 2008). In Q4 2009, the aggregate non-life loss ratio (ratio of actual losses to insurance premium earned) equalled 57.68% (vs. 57.95% in Q4 2008).
Contribution of ROSNO companies to consolidated net profit | |||
|
Net profit, mln. roubles |
Growth, mln. roubles | |
|
2009 |
2008 | |
IC ROSNO |
779 |
-1211 |
1990 |
IC Medexpress |
23 |
51 |
-28 |
IC Allianz |
-160 |
-493 |
333 |
AMC Allianz ROSNO Asset Management |
51 |
-191 |
242 |
Other subsidiaries |
146 |
-462 |
608 |
Total |
839 |
-2306 |
3145 |
As compared to the first 12 months of 2008, the companies of ROSNO Group increased net profit by 3,145 million roubles. Such a significant growth resulted from better insurance and investment results across IC ROSNO and lower losses of its subsidiaries.
ROSNO Group insurance premium and insurance compensations
The aggregate insurance premium collected by ROSNO Group in the 12 months of 2009 amounted to 22.9 bn roubles (vs. 24.7 bn roubles in the 12 months of 2008). In the environment where the insurance market fell by 8%1, the Group’s gross insurance premium decrease was at the expected level, and the quantity of concluded contracts remained generally the same (3,871 thousand contracts in 2009 vs. 3,906 thousand contracts in 2008).
The decrease in premium collected in 2009 resulted from deliberate reduction of sales in the motor insurance sector due to a scheduled optimization of motor insurance portfolio in the most unprofitable segments, a general market trend for reduction of medical insurance costs prevailing in the client companies, and lower volume of insurance premium collected by Allianz Ukraine (by 53.7 %), (further details are provided in the Allianz Eurasia section).
Insurance premium segmentation by ROSNO Group company | |||
|
Insurance premium, mln roubles | ||
|
2009 |
2008 |
Growth, % |
IC ROSNO |
21 478 |
22 302 |
-3,7% |
IC Medexpress |
825 |
967 |
-14,8% |
IC Allianz |
381 |
825 |
-53,7% |
Other subsidiaries |
181 |
596 |
-69,6% |
Total |
22 865 |
24 690 |
-7,4% |
The share of IC ROSNO in the aggregate premium collected by the Group in the 4 quarters of 2009 equalled 93.9% (as compared to 90.3% for the 4th quarter of 2008).
Major business lines
ROSNO Group’s portfolio remains well-balanced. Its major business lines are as follows: voluntary medical insurance (26.7% of the insurance portfolio), property insurance (20.7% of the insurance portfolio), and motor insurance, including OMTPL (33.4% of the insurance portfolio). In the 12 months of 2009, their aggregate share in the insurance portfolio equalled 81%.
Investment policy
Following its strategy of conservative approach aiming to provide maximum reliability and liquidity of investments, ROSNO Group allocates insurance reserves and equity in the banking instruments of the largest and most financially sound banks, as well as in state securities and corporate bonds with high reliability rating.
Fixed-income banking instruments accounted for the major share of the portfolio, equalling 63% (vs. 64% as of the end of Q4 2008).
Along with monitoring credit quality of its investment portfolio, the company pays much attention to diversifying its investments, balancing the proportions of government and corporate securities in its portfolio, and restricting the maximum share of investments per issuer.
Allianz Eurasia
According to the operating results posted by Allianz Eurasia, the aggregate insurance premium collected in the 12 months of 2009 by ROSNO Group, together with IC Progress-Garant, IC Allianz
Allianz Eurasia Group renders long-term life insurance services via Allianz ROSNO Life. In 2009, the company demonstrated rapid growth of premium collected (by 129% vs. Q4 2008) and a considerable improvement of financial results. The company’s net loss decreased by 134 million roubles to 354 million roubles (against 488 million roubles in the 12 months of 2008).
Due to the unstable financial and economic situation in
Комментарии