OREANDA-NEWS. The international rating agency Fitch expects a decrease in profitability from insurance activities of Russian companies in 2019. This is stated in the materials presented at the Fitch business breakfast in the insurance sector.

The agency attributes the decrease in profitability from insurance activities to the deterioration of two parameters: the loss ratio and the coefficient of acquisition costs (expenses of the insurance company associated with attracting new insurers and retaining old ones). At the same time, according to the rating agency, for the six months of 2019, the profit from insurance activities amounted to a little more than 12 billion rubles, when as a year earlier this figure exceeded 18 billion rubles (data on companies with an aggregate market share of 40% in the general insurance sector )

Among the key topics facing the insurance sector in Russia, Fitch analysts note a sluggish macroeconomic environment and low disposable income, as well as uncertainty about the access of foreign affiliates to Russia's participation in the WTO.