OREANDA-NEWS. May 17, 2012. The total receipts of the SOGAZ Group, without OMS (Compulsory Health Insurance)*, amounted to 35.18 bln roubles in the first quarter of 2012, which is a 35-percent increase compared with the same period of the prior year. The total volume of payouts increased by 10 percent and amounted to 6.8 bln roubles.

The Group’s receipts from voluntary (classical) types of insurance totaled 33.91 bln roubles (plus 32 percent) and payoutstotalled 6.61 bln roubles (plus 14 percent).

The total of premiums collected on Property Insurance increased by 33 percent, reaching 16 bln roubles. The volume of payouts increased by 15 percent, i.e. to 2.31 bln roubles.

The Group’s receipts from Voluntary Personal Insurance (without Life Insurance) rose to 17.22 bln roubles (plus 33 percent) and payoutstotalled 4.2 bln roubles which is a 12-percent increase from the same period of the prior year.

The volume of premiums collected from Liability Insurance increased by 114 percent, i.e. to 1.96 bln roubles (payouts increased by 11 percent, i.e. to 235 mln roubles). The main increase was due to receipts from sales of Liability Insurance policies to Owners of OPO (Hazardous Production Facilities)), which have become obligatory in the Russian Federation since 2012. The Group’s receipts from this class of insurance totaled 972 mln roubles. Receipts from the Compulsory Motor Third Party Liability Insurance (OSAGO) increased to 276 mln roubles (plus 37 percent); in contrast, payouts were slightly lower than those in the first quarter of 2011, i.e. 130 mln roubles (minus 4 percent).

The highest growth rates in the first quarter, as well as in the same period a year earlier, came from Life Insurance. Receipts from that class of insurance increased by 225 percent, i.e. from 381 mln to 1.23 bln roubles. Payouts increased by 8 percent, from 381 mln to 411 mln roubles.

Compared with the first quarter of 2011, total assets of the insurance companies within the SOGAZ Group increased by 17 percent, reaching 132.45 bln roubles. Insurance reserves (gross) rose to 91.32 bln roubles (plus 14 percent). The Group’s total capital increased by 31 percent, totaling 29.25 bln roubles.

The Group’s income from investments for the first three months of 2012 amounted to 1.33 bln roubles

(plus 41 percent). The Group’s net profit was 3.39 bln roubles (according to RSBU (Russian Accounting Standards) data), which is a 165% increase year-on-year (1.27 bln roubles).

A German insurance company of SOVAG joined the ranks of the SOGAZ Group’s subsidiaries in the first quarter of 2012. In the first quarter of 2012 the Company collected 35.2 mln Euros of premiums (plus 10 percent). Payouts totaled 17.3 mln Euros (minus 4 percent).

Sergei Ivanov, Chairman of the Board, the SOGAZ Insurance Group, said:

- Increase in receipts in the first quarter occurred due to both expansion of business with existing customers and acquisition of new ones, such as NOVATEK and Tuapsinsky NPZ (Oil Refinery Plant). In addition, a Law on Compulsory Liability Insurance for Owners of Dangerous Installations came into effect earlier this year. We made active preparations for that event, and our work was not done in vain. Based on the first quarter results, SOGAZ has gained a strong lead in the OPO insurance, taking up a 20-percent share of the market in terms of receipts. Concern Rosenergoatom, RZD, AVTOVAZ, Rostelecom, Corporation VSMPO-AVISMA and many other major companies operating hazardous objects became SOGAZ’ customers in this insurance class. The first payouts were already made, in particular, following the Sestroretsk accident that occurred last January.