Insurer Rosgosstrakh net profit slumps in H1
MOSCOW. Aug 15 (Interfax) - Russian insurance company Rosgosstrakh saw net profit slump nearly 90% in the first half of 2011 to 186.57 million rubles, the company said in its Q2 report.
Assets dropped to 105.42 billion rubles from 118.44 billion rubles.
"Profit reduction was caused by the following factors: first, investment revenue dropped because of a general fall in interest rates compared to last year; second, this year saw real estate depreciation that was not on the Rosgosstrakh balance in the first half of last year," the company said.
"Changes to assets occurred mainly because of a reduction in payables [down 58.4% to 8.3 billion rubles]," a company spokesman said.
Premiums including reinsurance grew 20% to 41.54 billion rubles.
In company assets, there was a drop in investment to 43.38 billion rubles from 54.3 billion. Investment in stocks fell to 8.49 billion from 10.14 billion rubles and investment in securities fell to 16.05 billion from 24.3 billion. Deposits dropped to 5.9 billion from 9 billion rubles. The share of investment in government and municipal securities surged 260% to 2.87 billion rubles. The share of cash in assets also grew to 10.6 billion rubles, a rise of 320%.
Receivables on insurance and co-insurance operations increased to 17.1 billion rubles from 15.2 billion.
Liabilities include uncovered losses of 9 billion rubles, which dropped by just 200 million rubles since the start of the year.
Rosgosstrakh is one of the largest Russian insurers. Its main shareholders, according to unofficial sources, are the brothers Danil and Sergey Khachaturov.