Russian insurance sector boosts aggregate profits 19% to 71.8 bln rubles in H1 - Central Bank
MOSCOW. Sept 8 (Interfax) - Aggregate net profit at Russian insurance companies totaled 71.8 billion rubles in the first half of 2016, 19% more than 60.3 billion rubles in the same period last year, the Central Bank said in a report on key indicators in the insurance sector.
The earnings increase is due to the results of the first quarter connect with insurer investment income and a lower incidence of losses, the Central Bank said.
Total capital in the sector rose 6.6% to 439.6 billion rubles as of the end of the first half.
Insurance reserves totaled 1.068 trillion rubles at the end of the period and assets reached 1.736 trillion rubles. Bank deposits, receivables and obligations accounted for respectively 24%, 19.5% and 16.1% of assets.
The percentage of insurance sector assets to GDP increased to 2.1% as of the end of the second quarter, up from 2% a year earlier.
Mandatory auto liability insurance remains the largest segment of the insurance market, accounting for 22.1% of premium income or a total of 63.9 billion rubles in April-June 2016, 12.2% more than in the same period last year. The growth was due to an increase in the average premium. The number of policies continued declining, by 3.8% in the second quarter year-on-year.