OREANDA-NEWS. August 25, 2010. According to preliminary data, the total insurance fees and premiums collected by the companies of the INGO group: Ingosstrakh OJSIC (Russia), INGO Ukraine (Ukraine), INGO Ukraine-Life (Ukraine), Garant (Austria), Ingo Nord (Finland), Belingosstrakh (Belarus), INGO Armenia (Armenia), Kyrgyzinsstrakh (Kirgizia), INGO Uzbekistan (Uzbekistan), IC Ingosstrakh Life (Russia), IC INgosstrakh-M (Russia), Emergency Insurance Company OJSC (Russia), MIC-EMESK OJSC (Russia), Ingosstrakh ONDD Credit Insurance LLC (Russia),in the first six months of 2010 were about 35.8 billion roubles, which is 5% less than the fees collected in the same period of last year. In the same period these same companies paid out indemnities totalling 25.6 billion roubles, which was 2% less than in the same period of 2009.

The fall in earnings resulted from the company pursuing a conservative approach towards risks. While the insurance market is still affected by underpricing, the company employs a very strict approach to underwriting and very carefully selects risks.

The total premiums of the Russian companies of the INGO group (Ingosstrakh OJSIC, IC Ingosstrakh Life, IC Ingosstrakh-M, Emergency Insurance Company OJSC, MIC-EMESK OJSC, Ingosstrakh ONDD Credit Insurance LLC) for direct insurance and reinsurance contracts entered into in the first six months of 2010 were RUR 34.4 billion, which is 4% less than the total premiums made by these same Russian companies of the group in the first six months of 2009. IC Ingosstrah-M and MIC EMESK OJSC made RUR 9.4 billion. In the same period Russian companies paid RUR 25 billion worth of indemnifications, which is 2% than the total payments in the same period of 2009.

The total premiums collected by Ingosstrakh in the first six months 2010 were RUR 23.8 billion, which is 7% less than the premiums collected by the company in the same period of 2009, including RUR 29.9 billion collected in premiums on direct insurance (down 7%) and RUR 1.9 billion in premiums on incoming reinsurance contracts (down 10%). The drop in the company’s premiums reflects a general stagnation in the insurance market and a contraction in sectors that had experienced the fastest growth prior to the crises; auto insurance, voluntary medical insurance, mortgage insurance etc. In these conditions the company has been more conservative in its risk assessment practices to optimise the losses that increased in 2009.

For voluntary insurance other than life insurance (including so called “incoming reinsurance” (in-world reinsurance), Ingosstrakh’s revenues were down 9% to RUR 20.8 billion, including RUR 3.3. billion for personal insurance (other than life insurance) (down 14% over the first six months of 2009), RUR 15.5 billion for property insurance (down 9%), RUR 2.0 billion for voluntary liability insurance(down 1%).

Under compulsory motor third-party liability insurance (CMTPL) Ingosstrakh made e revenue of RUR 3 billion (up 9%).

In the first six months of 2010 Ingosstrah paid a total of RUR 15.5 billion, which was 4% less than in the same period of 2009. Direct insurance payouts totalled RUR 14.4 (down 2%) while payouts under incoming reinsurance contracts were RUR 1.1 billion (Down 29%).

Payments under voluntary insurance contracts other than life insurance (including payouts under incoming reinsurance contracts) were RUR 13.7 billion (down 6%), of these personal insurance payouts (other than life insurance) were RUR 2.6 billion (down 3%), property insurance payouts were RUR 10.5 billion (down 5%), payouts for liability insurance were RUR 0.6% (down 29%). Payments for compulsory motor third-party liability insurance (CMTPL) totalled RUR 1.8 billion in the first six months of 2010 (up 13% on the same period of last year).

In the reporting period the assets of Ingosstrakh OJSIC, Ingosstrakh Life, Ingosstrakh-M, Emergency Insurance Company OJSC, MIC EMESK OJSC and Ingosstrakh ONDD Credit Insurance LLC increased by 2% if compared with July 1, 2009, reaching RUR 70 billion. The insurance reserves of the Russian companies of the INGO group were down 2%, total insurance reserves of the Russian INGO companies are RUR 47.5 billion. The decrease in insurance reserves calculated in accordance with the Russian accounting practices between the first six months of 2009 and the first six months of 2010 resulted from a fall in the total premiums collected by the companies, which lead to a drop in the reserves of unearned premiums (RUP). In addition to that, the decreased reserves was caused by a reduction in the CMTPL stabilisation reserve. The company’s equity capital at July 1st 2010 reached RUR 16.3 billion, which is 9% more than at July 1st 2009. According to preliminary data, the pre-tax profit generated by these companies in the first six months of 2010 totalled over RUR 1.8 billion.