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Financial review

 

  2016 
[mln. RUB]
2017 
[mln. RUB]
Changes 
[%]
Gross premiums    12 104 12 332     2
Net premiums  10 711 11 309     6
Earned premiums 10 692 10 809     1
Net claims incurred   6 577   6 302     -4
Claims paid   5 915   6 116     3
Operating expenses   2 886   3 193    11
General and administrative expenses   1 144   1 062    -7
Technical reserves   8 625   9 300     8
Investments   9 219 10 375    13
Investment income      688      707     3
Total assets 14 599 15 854     9
Equity   4 367   4 604     5
Authorized capital   2 448   2 448     0
Net profit      319      371    16

 

NOTES TO FINANCIAL HIGHLIGHTS

In 2017, the Company showed an overall positive financial performance with steady business growth across all business areas and a good balance of the insurance portfolio. Gross written premiums for 2017 were ₽ 12.3 billion, an increase of 2% compared to the previous year.

Net premiums increased by 6% to a total of ₽ 11.3 billion.

Net incurred claims decreased to ₽ 6.3 billion, a decrease of 4% against the previous fiscal year. The claims paid amounted to ₽ 6.1 billion, up 3% compared to 2016. These results show a stable tendency of the reduction in claim settlement expense and reflect the decrease in the loss reserve due to payments for losses.

The Company’s insurance reserves amounted to ₽ 9.3 billion which is a 8% increase compared to the previous fiscal year. The technical reserves are invested in high quality liquid assets which generate a sustainable income stream.

Total investments were also up 13% over the last year and, as of 1 January 2018, amounted to ₽ 10.4 billion, with the 2017 investment income of ₽ 707 million which is an increase of 3% compared to 2016.

The Company reported total assets of ₽ 15.9 billion as of 1 January 2018, which is a 9% increase from the last year.

By end 2017, the Company’s equity amounted to ₽ 4.6 billion, which is an increase of 5% compared to prior year period due to capitalization of profits.

Authorized capital remained at the same level as at the 2017 year-end, totaling ₽ 2,448 million.

Net profit result amounted to ₽ 371 million compared to ₽ 319 million a year earlier, reflecting a 16% increase.

All told, the Company continued to successfully evolve and expand over the past year. It underpinned its competitive position in corporate and personal insurance markets throughout the entire territory of Russia, worked hard to streamline general and administrative costs, and maintained a conservative level of net retention and adequate reserves. Today, the Company continues to honor its obligations to policyholders and demonstrates steady and dynamic growth of equity and total assets, which gives positive impacts towards enhancement of its financial sustainability.