Ukrainian life insurance companies in 2017 collected UAH 2.914 billion in gross insurance premiums, which is 5.7% more compared to 2016. According to a report on the website of the National Commission for the Financial Service Markets Regulation, 96.6% of insurance premiums for this period were received from individuals, 3.4% from legal entities. During the year, the number of insured individuals decreased by 2% compared to 2016, to 4.077 million. At the same time, in 2017 some 1.533 million people were insured, which is 11.2% more than in 2016.
During the reporting period, life insurance companies paid UAH 556.3 million in insurance claims, which is 33% more than in the previous year.
The reserves decreased by 1.8%, to UAH 983 million. At the same time, the bulk of the change in reserves in the amount of UAH 863.8 million was formed under other endowment insurance agreements.
In 2017, seven life insurance companies posted a negative value of the increase in reserves for a total of UAH 113.4 million due to early termination of insurance contracts. The growth of life insurance reserves was UAH 1.096 billion. The number of life insurance companies in Ukraine as of December 30, 2017 fell to 33 compared to 39 a year ago.
The Ministry of Economic Development and Trade and the Ministry of Finance of Ukraine expect the country’s GDP will grow by 3.6% in 2019. The corresponding forecast is contained in the draft titled “Main Guidelines of Budget Policy” submitted by the Cabinet of Ministers on Wednesday. The growth of the consumer price index (inflation) by the end of 2019 is expected at 6.5%, the average annual forex rate of the hryvnia against the U.S. dollar is projected at UAH 30.5.
Earlier it was reported that the National Bank of Ukraine predicts the acceleration of GDP growth in 2018 to 3.4% from 2.5% in 2017 and a slowdown in 2019-2020 to 2.9%.
Regarding the consumer price index, the NBU expects inflation to slow to 8.9% by the end of 2018 from 13.7% in 2017, while a forecast for 2019 is set at 5.8%, in 2020 at to 5%.
Agricultural holding Myronivsky Hliboproduct (MHP) sold 135,307 tonnes of chicken meat in January-March 2018, which is 9% more than in the same period of 2017. The average selling price of the produce in Q1 increased by 23% year-over-year the year, to UAH 38.78 (excluding VAT) per kg, MHP said in a report on the website of the London Stock Exchange on Wednesday.
MHP’s poultry prices on the domestic market remained almost at the same level as in Q4 2017, but 23% higher year-on-year due to low comparative basis in Q1 2017. The export price increased by 17% year-over-year as a result of MHP’s export product mix change and increased sales to more profitable markets (market targeting strategy).
In Q1 2018, MHP’s exports of chicken meat constituted 63,144 tonnes, which is 28% higher than in the same period last year (Q1 2017: 49,151 tonnes), having exported its poultry to 53 countries worldwide. Export sales represented around 47% of total poultry sales volumes in Q1 2018. “During the reporting period, following its export strategy, the company has been developing its exports mainly in the countries of the MENA [Middle East, North Africa] and the EU,” the report said.
Ukrainian insurance companies in 2017 collected UAH 131.128 million of premiums through resident intermediaries, which is 48.4% more compared to 2016 (UAH 88.366 million). According to a report on the website of the National Commission for Regulation of Financial Services Markets, the number of contracts signed through resident intermediaries for the period increased by 12.5%, to 4,240.
According to the regulator, of the total amount of collected premiums, premiums on personal insurance amounted to UAH 115.02 million, property insurance to UAH 6.9 million, mandatory insurance to UAH 2.25 million, life insurance to UAH 1.33 million, and liability insurance to UAH 5.621 million.
The amount of remuneration for the provision of such intermediary services for 2017 increased 56.7%, to UAH 9.199 million.
According to the commission, insurance premiums received by non-resident insurers under insurance contracts for the specified period amounted to UAH 3.497 million, which is 19.3% less than in 2016. Remuneration on 32 signed contracts amounted to UAH 619,500. The regulator said that during the reporting period insurance claim fee payments under the above contracts were not made.
Bulgaria’s Euroins Insurance Group (EIG), a large independent insurance group in the Central and Southeast Europe, is acquiring the Ukrainian travel insurance business of Munich Re’s Ergo – ERV Ukraine (Kyiv). “The companies have signed acquisition agreements. The deal is expected to be finalized after receiving approval by the regulatory authorities,” EIG said in a statement. The agreement provides for further cooperation between EIG and ERGO, including the transfer of know-how of ERV and the opportunity for EIG to sell travel insurance products under the ERV brand or a model of joint branding in Ukraine and other countries where EIG is present.
According to the release, ERV Ukraine is the second largest provider of travel insurance in Ukraine with a market share of 10.7%. In 2017, almost 627,000 customers were provided with the company’s services.
“The acquisition of the ERGO insurance business in Ukraine is in line with our strategy of expanding and diversifying our portfolio in Eastern Europe and strengthening our position as the leading insurance group in the region,” EIG said citing CEO Kiril Boshov.
According to him, ERV Ukraine will be kept as a separate company outside the Ukrainian EIG subsidiary Euroins Ukraine, in order to concentrate efforts on selling travel insurance products.
“We are very pleased that EIG has signed the acquisition agreement, including far-reaching sales cooperation, which helps us to enter new markets and make our sales even more powerful,” Chief Executive Officer of ERV Richard Bader, a travel insurance specialist at ERGO, said.
BULGARIA, EUROINS, INSURANCE BUSINESS, INSURANCE GROUP, MUNICH, RE'S ERGO
One troy ounce=31.10 grams
