OREANDA-NEWS. Aggregate premium income at Sogaz Insurance Group (excluding OMS) shot up by 30% in 2014, compared to 2013 figures - totalling 122.5 billion roubles by international standards on financial reporting

The total of accumulated insurance premium revenue earned by the SOGAZ Insurance Group (excluding OMS) hit 122.5 billion roubles for 2014. Within this figure, the insurance premiums paid by CJSC IK Transneft to SOGAZ totalled 8.5 billion roubles. Evn without taking the Transneft earnings into account, premium income at SOGAZ rose by 21% in 2014. The overall figure for accrued insurance premiums at OJSC SOGAZ, a key player within the SOGAZ Insurance Group, amounted to 108.6 billion roubles, including reinsurance figures. This total is 23% higher than in 2013.

"Despite the gloomy economic situation and the general negative trends in the market, SOGAZ came away from 2014 with a really good result. This doesn't mean that we're dissimilar to other insurers, or that we're feeling sleek and comfortable. SOGAZ is dealing with the same problems causing bother throughout the entire insurance industry. To hit these 2014 figures we had to wheel out all our abilities and resources. We owe our continued expansion to having done that. We've won over new market segments, and expanded our geographical coverage", commented Mr Sergey Ivanov, the SOGAZ Chairman, when discussing the 2014 figures.

The vast majority of premium income collected by OJSC SOGAZ comes from insurance of corporate assets, elective health insurance, and providing cover for construction industry risks. The overall share such risks represent in SOGAZ's portfolio totals 62%. The value of premiums collected in 2014 on corporate asset insurance risks rose by 5%, to 26.5 billion roubles; on medical insurance by 22%, to 29.1 billion roubles, and on construction industry risks by 17%, to 11.8 billion roubles.

The largest increases in premium income in 2014 were in the sphere of space industry (ie the launch and operation of rockets and satellites) risks. Premiums rose to 5.6 billion roubles, a six-fold increase on premium income in the same category during 2013. Alongside this, SOGAZ's market share of premium income in this category rose from 1% to 5%. The company's success in this field was due, in some part, to SOGAZ's success in late 2013 in winning the tender to insure the risks of FSUE TSENKI's launches of 30 space vehicles, the opening of cooperation with RSC ENERGIA, providing cover for the launch of the Yamal-401 satellite, Gazprom Space Systems, and involvement in a number of other projects in the space exploration and development industry.

The cumulate premium revenue collected by OJSC SOGAZ on the insurance of marine risks rose year-on-year by 120% to 949 million roubles. This was achieved by establishing and extending contracts, particularly those covering international projects. Premium income from aviation risks rose to total 1.78 billion roubles, which is a 37% increase on the previous year. Insurance of goods in transit also rose - by 22% year-on-year, to a total of 2.15 billion roubles.

Premiums in vehicle road insurance rose by 73%, to 4.3 billion roubles. The overall rise in motor insurance (33% higher, totalling 11.8 billion roubles) was achieved by the company's portfolio diversification policy affecting partnership and retail business. However, the overall share of mandatory and voluntary vehicle insurance in the company's portfolio remains low, at a total of 11%.

The sum collected in premiums for risks underwritten by SOGAZ in the field of civic liability of passenger carriers went up in 2014 by 43%, totalling one billion roubles. Premiums for liability insurance at production facilities working with hazardous goods and processes fell by 12%, running to two billion roubles. This reduction was caused by a reduction in the overall number of such facilities, along with lower tariffs.

Overall premiums for accident insurance enjoyed a 25% increase, at 2.7 billion roubles, while premiums for travel insurance totalled 178 million roubles - a 54% increase year-on-year.

Retail and partnership business (banks, leasing corporations, car dealerships) netted 11.7 billion roubles in premiums for SOGAZ in 2014 - up 36% on the previous year. Premiums for mortgage insurance risks totalled 1.1 billion roubles, up 67%. The overall portfolio for the insurance of private individuals was up by 40%, amounting to 8.6 billion roubles.

SOGAZ's active expansion for partnerships and retail sales business, along with insurance for SMEs, helped to boost incomes for the corporation's regional offices. These premiums rose in 2014 by 33%, to 19.9 billon roubles, without even factoring in the premiums earned from large federal clients.

The overall amounts earned for reinsurance risks was 6.7 billion roubles - an increase of 6% on 2013.