OREANDA-NEWS. August 28, 2012. The total receipts of Russian companies of the SOGAZ Group, without Compulsory Health Insurance*, amounted to 48.18 bln roubles in the half-year of 2012, which is a 34% increase year-on-year. The total volume of payments increased by 24% and made 16.38 bln roubles.

The Group’s receipts from voluntary (classic) types of insurance totaled 45.96 bln roubles (up 29%) and payments totaled 16.01 bln roubles (up 25%).

The gross written premiums for property insurance increased by 36%, to 23.8 billion roubles. Payments increased by 12%, to 4.50 bln roubles.

The Group’s receipts from Voluntary Personal Insurance (without Life Insurance) rose to 18.96 bln roubles (up 13%) and payments totaled 11.17 bln roubles, which is a 32% increase year-on-year.

The gross written premiums collected from Liability Insurance increased by 116%, to 3.74 bln roubles (payments increased by 51%, to 631 mln roubles). The growth in this area was mainly due to Liability Insurance for Owners of Hazardous Production Facilities (HPF), which has become compulsory: the Group’s receipts on this type of insurance totalled 1.56 bln roubles. Receipts from Compulsory Motor Third Party Liability Insurance increased to 605 mln roubles (up 35%); payments totaled 257 mln roubles (down 4%).

Receipts from Life Insurance rose by 20%, from 1.42 bln roubles to 1.70 bln roubles. Payments increased by 245%, from 711 mln roubles up to 2.45 bln roubles. Increase in payouts was due to the expiration of the five-year accumulative life insurance policies. The Company fully complied with all its commitments to the insured.

The receipts of German Insurer SOVAG amounted to 57.67 mln euros in 1H2012, which is a 6% increase year-on-year. SOGAZ a.d.o. Novi Sad (Serbia), which began its operation this year, has collected 1.4 mln euros in premiums.

The total assets of Russian companies of the SOGAZ Group, compared to 1H2011, increased by 13%, amounting to 124.23 mln roubles. Insurance reserves (gross) rose to 83.42 bln roubles (up 12%). The Group’s total capital increased by 28%, totaling 31.99 bln roubles.

The Group’s income from investments for the first six months of 2012 amounted to 2.81 bln roubles (up 19%). The Group’s net profit was 6.55 bln roubles (according to Russian Accounting Standards), which is a 26% increase year-on-year (5.19 bln roubles).

Sergei Ivanov, Chairman of the Management Board, SOGAZ Insurance Group, said:

“Among the types that showed the most significant increase in the first half year - Aircraft Insurance and Land Transport Insurance: 200% and 183%, respectively. In the market of compulsory HPF insurance, which is new in Russia, we have managed to become a leader, and the share of receipts on this type in the company's portfolio is 3.4%. Stable growth is observed in the insurance of legal entities’ property, construction risks, voluntary health insurance. However, as we have repeatedly stated, SOGAZ is not after volumes or market share: our main goal is to ensure profitability, increase capitalization, generate sufficient reserves. We expect net profit of at least 7.5 bln roubles over the year. This is record-breaking performance not only for SOGAZ, but for the whole Russian insurance market.”

SOGAZ Insurance Group comprises OJSC SOGAZ, LLC IC SOGAZ-AGRO, OJSC IC SOGAZ-MED, LLC IC SOGAZ-LIFE, SOVAG (Germany), SOGAZ a.d.o. Novi Sad (Serbia), LLC SOGAZ International Medical Center, asset management company CJSC Leader and medical service company LLC Gazprommedservice. Currently, the Group's regional network comprises over 600 branches and sales offices throughout Russia. SOGAZ has been assigned the highest reliability rating of A++ by Expert RA, as well as international financial strength ratings by A. M. Best (“B++”, outlook “Stable”) and Standard & Poor's (“BBB-”, outlook “Stable”).