OREANDA-NEWS. Total revenues of SOGAZ Insurance Group for the first three months of 2015 (excluding CHI) increased by 26 percent compared to the same period in 2014 (according to International Financial Reporting Standards) and reached RUB 59.8 bn, including RUB 0.3 bn of the premium of ALROSA IC LLC that entered the Group in late 2014.

Over the first three months of 2015, capital of SOGAZ Insurance Group has increased by RUB 4.1 bn to RUB 59.8 bn (RUB 55.7 bn as of the end of 2014). The Group's net income amounted to RUB 3.6 bn that is 18 percent more than the year before.

The share of SOGAZ Insurance OJSC in the total revenue of the Group is 89 percent. The total amount of accrued insurance premiums of SOGAZ Insurance OJSC has reached RUB 53 bn. This is 27 percent more than in QI 2014.

In absolute terms, the largest increase in the company's revenues was provided by the voluntary medical insurance (+ RUB 4.2 bn) and accident insurance (+ RUB 5.0 bn). The volume of premiums on these types of insurance amounted to RUB 24.5 bn (+ 21 percent) and RUB 6.5 bn (+ 327 percent), respectively. A considerable increase in premiums on accident insurance is due to the conclusion of a contract with the Russian Ministry of Defence on compulsory insurance of life and health of servicemen in 2015-2016.

Revenues from SOGAZ property insurance for legal entities has grown by 23 percent to RUB 9.3 bn.

Income from construction and assembly insurance amounted to RUB 2.6 bn and decreased by 30 percent compared to the same period last year. "The decline in revenues compared to the same period last year is the sequence of the major seven-year contract with the premium of RUB 1.3 bn signed by our company with one of our customers in the first quarter 2014. In addition, the construction and assembly insurance segment is still exposed to negative trends associated with the Decree of the Ministry of Construction of the Russian Federation (passed in the middle of the previous year), which excluded the cost of insurance from the summary calculation of construction projects implemented at the expense of the budgets of various levels."

A number of major contracts signed in Q1 2015, including these with new customers, has provided a positive trend in the field of space insurance (an increase by 123 percent to RUB 436 mn), cargo insurance (an increase by 137 percent to RUB 654 mn), and aviation insurance (an increase by 53 percent to RUB 1.4 bn). Revenues from marine insurance have decreased slightly (by 3 percent to RUB 259 mn).

The share of CMTPL insurance in the portfolio of SOGAZ has remained at the level of 2 percent, despite the fact that the company's revenues from this type of insurance have increased by 69 percent to RUB 1.3 bn. According to preliminary data of the Russian Union of Insurers, in QI 2015, SOGAZ took the 6th line in the rating of the largest CMTPL insurers. However the revenues from motor hull insurance have, on the contrary, decreased by 15 percent to RUB 1.5 bn. The main reason for the decline in demand for the motor hull insurance was a substantial drop in Russian sales of new cars this year. The share of the motor hull insurance in the portfolio of SOGAZ Insurance OJSC has dropped from 4 percent to 3 percent over the year.

The company's revenue from mortgage insurance has risen by 25 percent to RUB 265 mn. Premiums of property insurance for individuals amounted to RUB 72 mn (+ 36 percent). In travel insurance they were RUB 59 mn (-17 percent).

As a result of reduction in the number of objects of insurable property and reduction of tariffs, revenues from insurance of liability of owners of hazardous industrial facilities (HIF), including compulsory and voluntary insurance, have decreased by 6 percent in QI 2015 and amounted to RUB 780 mn.

The volume of SOGAZ Insurance OJSC premiums for incoming reinsurance was RUB 1.3 bn that is 4 percent less than in the same period in 2014.

Revenues of the company's regional network have increased by 15 percent to RUB 20 bn.