OREANDA-NEWS. August 18, 2010. According to the operating results posted for the first six months of 2010, the aggregate insurance premium collected by ROSNO Group equalled 11.3 bn roubles. The most rapid growth has been observed in the VMI segment, with its portfolio expanding by 23% and premium exceeding 4.8 bn roubles, reported the press-centre of ROSNO.

ROSNO Group insurance premium
The aggregate insurance premium collected by ROSNO Group in the 6 months of 2010 amounted to 11.3 bn roubles (vs. 13.5 bn roubles of premium collected in the 6 months of 2009). The decrease in the Group’s insurance premium collected, as compared to the same period of 2009, results from the measures taken by IC ROSNO to improve the quality of property and financial risks insurance portfolio, and from the overall reduction of insurance premium collected by IC Allianz Ukraine. The insurance premium collected by IC Allianz Ukraine in the first 6 months of 2010 decreased by 8% to 167 mln. roubles. The reduction can be attributed to the still deteriorating situation in the Ukrainian insurance market and lower motor insurance sales due to the planned optimization of the insurance portfolio in the least attractive segments. This work has led to the decrease of net loss for the first six months of 2010 by 45 mln. roubles (to 7 mln. roubles) versus the first six months of 2009.

IC Medexpress, belonging to ROSNO Group, demonstrated improvement of its financials in the first six months of 2010, with insurance premium growing by 5.8% to 496 mln. roubles.

As of the end of Q2 2010, the share of IC ROSNO in the aggregate premium collected by the Group remained largely the same as in the same period of the previous year, equalling 94%.

Major business lines
ROSNO Group’s portfolio remains well-balanced. The Group’s major business lines are as follows: voluntary medical insurance (42.6% of insurance portfolio), motor insurance, including OMTPL (32.8% of insurance portfolio), and property insurance (10.35% of insurance portfolio). In Q1 2010, their aggregate share in the insurance portfolio equalled 85.7%.

A notable growth of premium in the 6 months of 2010 was shown by the VMI segment (23.8%). Also, positive sales dynamics was observed within such business lines as cargo insurance (25%), travellers’ insurance (16%), and liability insurance (10%).

Motor insurance premiums remained largely the same as in the first half of 2009.

Sales were lower in the property insurance segment, where premium decreased through resegmentation of the corporate insurance portfolio (67.5%), and also in the financial risks insurance (25.3%).

Investment policy
The investment strategy pursued by ROSNO Group still implies conservative approach with the emphasis on reliability and liquidity of investments. Continuing to follow this strategy, the Group invests its insurance reserves and equity in government securities, bonds and banking instruments of the largest and most financially stable companies and banks. Fixed-income banking instruments still account for the major share of investment portfolio, equalling 56% (vs. 60% in the first half of 2009).

Along with monitoring credit quality of its investment portfolio, the company pays much attention to diversifying its investments, balancing the proportions of government and corporate securities in its portfolio, and restricting the maximum share of investments per issuer.

Other Allianz Eurasia subsidiaries
Based upon operating results of the first half of 2010, the aggregate insurance premium collected by Allianz Eurasia, which consists of ROSNO Group, IC Progress-Garant, IC Allianz Kazakhstan, IC Allianz ROSNO Life, and CJSC SAK Allianz, equalled 16 bn roubles, which corresponds to the premium collected in the same period of the previous year. The major contribution (71%) to the premium collected by Allianz Eurasia is still made by the companies of ROSNO Group.

In the reporting period, the largest growth of premium collected among all Allianz Eurasia subsidiaries was demonstrated by IC Allianz Kazakhstan (501%), IC Allianz ROSNO Life (151%), and IC Progress-Garant (123%).