Insurance market: analysis of main indicators by groups

Source: Central Bank of the Russian Federation in English

The Bank of Russia has analysed the principal financial indicators by groups of insurance companies.  According to the Review of Insurers’ Key Indicators, the ever-changing economic environment and the situation in individual insurance market sectors influence different groups of insurers in a different way.
The analysis covered three indicator clusters with respect to various groups of insurers based on 2017-2018 activity results, including concentration of assets and capital; return on assets, capital and investment; and loss ratios.
As of 2018 year-end, the return on assets and equity of top 20 insurers by premium amounts (8.5% and 36.3% respectively) exceeded the indicators of other insurers (5.4% and 22.8% respectively).  High returns achieved by this group are explained by good financial results of the major insurers offering insurance other than life insurance. This group’s profitability largely improved during the last year.
Among specialised insurers, vehicle insurance companies demonstrated the most important change in 2018, having turned profitable after suffering losses a year earlier.
Insurance companies specialising in voluntary health insurance and accident and sickness insurance demonstrated the maximum return on equity (55.7%). This was driven by a favourable situation in the credit insurance market.
At the same time, 2018 saw a decrease in the return on assets and equity of life insurers. Lower life insurance premiums in 2019 Q1 may lead to further profitability decline in this group of insurance companies.
11 July 2019