In 1H 2021, GWP reached RUB 47.7 billion, an increase of 38% year-on-year; non-life GWP rose by 23% and life GWP grew by 53% year-on-year during the first six months of 2021. The GWP increases for both business lines during 1H 2021 were faster than the overall growth of their respective market segments during the same period.
Russian insurance sector segment overview
Key segments in the non-life insurance sector are:
• Motor insurance is the largest insurance group of non-life products and one of the pioneer products in the Russian insurance market. The product offering consists of two main insurance products: motor own damage (MOD) and compulsory third-party liability (CMTPL).
• Health insurance consists of two products, voluntary medical insurance (VMI, both corporate and individual) and travel insurance, which are different by nature, but are reported jointly by the CBR under health insurance.
• Accident insurance, primarily general accident insurance, with an insignificant share of travel, passengers’, patients’ and employees’ accident insurance.
• Property insurance, consisting of corporate and individual property insurance.
Life insurance includes the following main groups of products:
• Savings insurance, which includes endowment life insurance, combining long-term capital accumulation and insurance coverage (death, disability, critical illness); and investment life insurance, which is a single premium savings product with a significant investment component combined with a guarantee of a premium refund upon maturity and risk coverage;
• Credit life insurance, which covers the debt of a borrower in the event of the policyholder’s death, permanent and/or temporary disability, sickness, unemployment, etc.
• Other life insurance products, such as risk insurance, for instance, formed less than 5% of the life insurance GWP in 2020.
For more information please contact:
Renaissance Insurance PR: firstname.lastname@example.org
Renaissance Insurance IR: email@example.com
EM (communications advisor to Renaissance Insurance Group)
Daria Khilenkova/Samuel VanDerlip
+7 916 805 4926/ +44 7554 993 032
(1)Calculated as a sum of GWP of Renaissance Insurance and Renaissance Life on a stand-alone basis.
(2)Excluding Sberbank Insurance and VTB-SOGAZ, the largest banking group captive player and a company with different business structure.
(3)Administrative Cost Ratio is calculated as administrative expenses divided by gross written premiums.
(4)Net Profit Ratio is calculated as net profit divided by gross written premiums.
(5)Return on Tangible Equity is calculated as the sum of net profit for the last 12 months adjusted for amortisation of value of business in force divided by the average total equity adjusted for goodwill plus intangible assets plus value of business in force for the specified period.
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Solely for the purposes of the product governance requirements contained within (a) Regulation (EU) 600/2014 as it forms part of domestic law in the United Kingdom by virtue of the EUWA ("U.K. MiFIR"); and (b) the FCA Handbook Product Intervention and Product Governance Sourcebook, (together, the "U.K. MiFIR Product Governance Rules") and/or Article 9(8) of Commission Delegated Directive 2017/593 (the “Delegated Directive”) regarding the responsibilities of Manufacturers under the Product Governance Requirements contained within: (a) Directive 2014/65/EU on markets in financial instruments as amended (“MiFID II”); (b) Articles 9 and 10 of the Delegated Directive; and (c) the local implementing measures (the “MiFID II Product Governance Requirements”), the Securities the subject of the Offering have been subject to a product approval process, which has determined that such Securities are: (i) compatible with an end target market of retail investors and investors who meet the criteria of professional clients and eligible counterparties, each as defined in the FCA Handbook Conduct of Business Sourcebook; and (ii) eligible for distribution through all permitted distribution channels (the “Target Market Assessment”). Notwithstanding the Target Market Assessment, “distributors” (for the purposes of the UK Product Governance Requirements and/or the MiFID II Product Governance Requirements, in each case to the extent applicable) should note that: the price of the Securities may decline and investors could lose all or part of their investment; the Securities offer no guaranteed income and no capital protection; and an investment in the Securities is compatible only with investors who do not need a guaranteed income or capital protection, who (either alone or in conjunction with an appropriate financial or other adviser) are capable of evaluating the merits and risks of such an investment and who have sufficient resources to be able to bear any losses that may result therefrom. The Target Market Assessment is without prejudice to the requirements of any contractual, legal or regulatory selling restrictions in relation to the Offering. Furthermore, it is noted that, notwithstanding the Target Market Assessment, Credit Suisse International, J.P. Morgan Securities plc, VTB Capital plc, BCS Prime Brokerage Limited, Renaissance Securities (Cyprus) Limited, Sberbank CIB (UK) Limited will only procure investors who meet the criteria of professional clients and eligible counterparties. Each distributor is responsible for undertaking its own target market assessment in respect of the Securities and determining appropriate distribution channels.
These materials do not contain or constitute an offer, or an invitation to make offers, sell, purchase, exchange or transfer any Securities in the Russian Federation, and do not constitute an advertisement of any Securities in the Russian Federation. This communication does not constitute or form part of individual investment advice, investment consulting or personal recommendation (within the meaning of the federal legislation of the Russian Federation (including, without limitation, Federal Law dated April 22, 1996 No. 39-FZ “On the Securities Market”, as amended)).
None of Credit Suisse International, J.P. Morgan Securities plc, VTB Capital plc, BCS Prime Brokerage Limited, Renaissance Securities (Cyprus) Limited, JSC “Sberbank CIB”, Sberbank CIB (UK) Limited or Tinkoff Bank (collectively, the “Banks”) or the expected Selling Shareholders nor any of their respective affiliates, directors, officers, employees, advisers, agents or any other person, accepts any responsibility or liability whatsoever for the contents of, or makes any representations or warranties, express or implied, as to the accuracy, fairness or completeness of the information presented or contained in this press release (or whether any information has been omitted from this press release) or any other information relating to the Company, its subsidiaries and their associated companies, whether written, oral or in a visual or electronic form, and howsoever transmitted or made available or for any loss howsoever arising from any use of this press release or its contents or otherwise arising in connection therewith. Accordingly, each of the Banks, the expected Selling Shareholders and their respective affiliates, directors, officers, employees, advisers, agents and any other person acting on any of their behalf expressly disclaims, to the fullest extent possible, any and all liability whatsoever for any loss howsoever arising from, or in reliance upon, the whole or any part of the contents of this press release, whether in tort, contract or otherwise which they might otherwise have in respect of this press release or its contents or otherwise arising in connection therewith.
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