OREANDA-NEWS. On 18 March 2009 was announced, that according to the company management Oranta < SORN UZ N/R > may reduce its Gross Premiums Written (GPW)  plans by 34% to UAH 1,001bn in 2009. This is related to the expected decrease of the insurance market total GPW by around 10%-20% in 2009, according to the company management estimations. Additionally, SORN will revise its M&A plans on the domestic insurance market in 2009 and will concentrate on the cost minimization.

Millennium Capital sees the news to be NEUTRAL for SORN, since, despite the decrease in expected GPW in 2009, the company still remains the leader in the market. Meanwhile, the minimization of the operational costs is a requirement on the financial markets during the liquidity crises. Though both the official company’s and market statistics were not announced yet Millennium Capital expects that SORN’s GPW will grow by around 50 b.p. faster than the market average in 2009.

Millennium Capital is an integrated financial services provider. Established in 2000 by a group of professionals with solid background in securities and corporate finance, Millennium Capital is now one of the major investment banking institutions.