ROSNO North-Western Directorate Announces Results for 1H
OREANDA-NEWS. September 10, 2010. North-Western Directorate of OJSC IC ROSNO has summarized the performance results in the North-Western Federal Okrug for the first half of 2010. As compared to the same period of the previous year, the aggregate insurance premium collected in the first six months of 2010 increased by 22%, reported the press-centre of ROSNO.
In the first half of 2010, ROSNO’s North-Western Directorate continued developing pursuant to ROSNO’s strategy "One + 3" directed towards profitable growth. The Directorate took a number of steps to boost ROSNO’s competitiveness in the North-Western Federal Okrug, thus facilitating positive financial results. The key projects of the first half of the year were as follows: increasing work efficiency of the sales force in all sales channels (agents, partners and corporate sales), segmentation of the insurance portfolio, decreasing the share of unprofitable insurance lines, optimizing all business processes and decreasing the share of acquisition expenses.
As a result, the aggregate insurance premium collected in 6 months of 2010 grew by 22% as compared to the same period of the previous year, reaching 879 mln. roubles. The growth of insurance premium also resulted from the fact that, in the first half of 2010, ROSNO won a number of tenders in St. Petersburg, reinforcing its portfolio with large contracts concluded with solid clients. The major share of premium collected by the North-Western Directorate pertained to the St. Petersburg branch (91.79%), as well as branches in Arkhangelsk (2.03%), Republic of Komi (1.57%), Murmansk (1.21%), and Kaliningrad (1.05%).
Impressive insurance premium growth was demonstrated by the following insurance lines: voluntary medical insurance (+21%), civil liability insurance (+217%), motor third party liability insurance (+50%), water transport insurance (+1049%), and cargo insurance (+79%).
Within the framework of strategic planning of operations of the entire ROSNO Group, ROSNO’s North-Western Directorate has worked out a development strategy; whereunder the main purpose is to enter the TOP 3 insurance companies of the North-Western Region in the medium-term perspective. The Directorate aims to strengthen its positions in the North-West in such segments as mortgage insurance, motor insurance, travellers’ insurance, carriage insurance, motor third party liability insurance "Green Card", etc.
The performance results of the first half of 2010 and the Directorate’s development prospects were commented by Mr. Evgeny Dubensky, Deputy CEO of ROSNO and head of the company’s North-Western Directorate: "In the first half of the year, North-Western Directorate segmented its insurance portfolio by reducing the share of its loss-making insurance segment, MOD insurance. We plan to retain our leadership in the business lines where ROSNO has been traditionally strong in the North-Western Federal Okrug, such as VMI, corporate property insurance, and construction and assembly risks insurance. Furthermore, our priority for the second half of 2010 is to start interaction with banking institutions, in order to strengthen our positions in the mortgage insurance segment and grow motor insurance and Green Card insurance sales".
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