OREANDA-NEWS. May 30, 2012. Expert RA prepared a study of the Russian insurance market “Russian insurance companies benchmarks in 2011: worked without earnings”. Profitability dive and contributions upswing in 2011 made lack of capital in large insurance companies more problematic.

Russian insurance market in 2011 saw declined profitability of insurance business to reach minimum parameters in 2009-2011.  Average asset profitability indicator was 2,2% (3,6% in 2010, 3,3% in 2009), own funds profitability - 7,4% (11,1% in 2010 and 8,4% in 2009). Thus, own funds profitability of Russian insurers in 2011 was above inflation (6,1%), but was worse than in Russian banks (8,6%). Lower profitability key factors: reduced investment income, growth of operation expenses, particularly, due to increased commissions to banks.