OREANDA-NEWS. According to International Financial Reporting Standards, net profit of SOGAZ Insurance OJSC in Q1 2015 was RUB 2.7 bn that is 4 percent lower than in QI 2014. According to Russian Accounting Standards, net profit of SOGAZ Insurance OJSC was RUB 5.67 bn (-7 percent).

The main factor for the decrease in income was the pre-arranged increase in spending on development of the company's regional business, completion of centralization of operational and financial functions, and creation of a unified regional network management system.

The outcomes of technical activities (excluding operating expenses) has increased by 7 percent to RUB 5.7 bn, despite the increase in loss ratio by 4 percentage points. The increase in the technical result was pre-determined by a significant increase in the portfolio and earned premiums (+ 28 percent compared to QI 2014).

The combined ratio (defined as the ratio of losses incurred, expenses on insurance contracts, and costs of doing business to earned premiums) has increased by 5.4 percentage points up to 90.7 percent. The loss ratio has increased by 4 percentage points to 64 percent. The loss run has been primarily influenced by several major losses in property insurance for legal entities incurred in QI 2015.

The assets of SOGAZ Insurance OJSC in QI 2015 were RUB 185 bn, which is 22 percent more than at the end of 2014 (excluding the reinsurer's share). Insurance reserves (gross) for the period have increased by 24 percent to RUB 152.4 bn. The company's capital as of the end of QI 2015 has increased to RUB 58.8 bn (+ 6 percent).