Business news from Ukraine

ASSETS OF INSURERS MANAGED BY MTIBU GROW BY 32% IN 2018

Assets of insurance companies managed by the Motor (Transport) Insurance Bureau of Ukraine (MTIBU) grew by 32.4% in 2018, to UAH 2.050 billion, according to a report of the commission that audited the operations of the bureau for 2018.
Of this amount, bank deposits in national currency amounted to UAH 1.661 billion, which is 65.5% more than a year earlier, in foreign currency – 323.6 million (a rise of 12.5%).
The share of deposits in total assets was 66.3%, while a year earlier it was 64.8%.
According to the report, the funds of the victims protection fund and the MTIBU insurance guarantee fund in 2018 were placed in the State Export-Import Bank of Ukraine (Ukreximbank, 6.6% of the total amount of funds placed), Oschadbank (23.9%), Ukrgasbank (28%) , UkrSibbank (0.2%), Credit Agricole Bank (5%), Kredobank (4.1%), OTP Bank (1.8%), Pravex Bank (5%), TAScombank (4.4%), and FUIB (2%).
In addition, the MTIBU manages the assets of insurers invested in local government bonds in national currency in the amount of UAH 203 million, which is 2.5 times more than in 2017, and 247.4 million in foreign currency (2.7 times more).
MTIBU members are 51 insurance companies.

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MTIBU MEMBER INSURERS RAISE OSAGO PREMIUMS BY 18% IN TWO MONTHS OF 2019

Insurance companies that are members of the Motor (Transport) Insurance Bureau of Ukraine (MTIBU) in January-February 2019 increased collection of insurance premiums for compulsory insurance of motor vehicle owners’ civil liability (OSAGO) by 18.12% compared to the same period of 2018, to UAH 661.448 million. According to data posted on the MTIBU’s website, the number of OSAGO contracts in January-February rose by 7.06%, to 1.066 million.
The total amount of insurance claim fees paid on domestic insurance contracts for the two months grew by 8.5%, to UAH 393.3 million. In particular, UAH 73.116 million was paid using European accident report forms, which is 43.1% more than in January-February 2018.
The bureau also recorded an increase in the number of settled claims for insurance compensation by 6.4%, to 22,500.

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UKRAINE’S INSURERS CUT PREMIUMS COLLECTED VIA RESIDENT INTERMEDIARIES BY 27.8%

Ukrainian insurance companies in January-September 2018 collected UAH 84.044 million in premiums under insurance contracts signed through resident intermediaries, which is 27.8% less than in January-September 2017 (UAH 116.370 million).
According to a report on the website of the National Commission for the State Regulation of the Financial Services Market, the number of contracts concluded through brokers during this period increased by 63.7%, to 5,363.
In accordance with the regulator’s information, out of the total amount of premiums those for personal insurance amounted to UAH 65.684 million (1,732 contracts), property – to UAH 11.757 million (125), mandatory insurance – to UAH 2.205 million (3,364), life insurance – to UAH 1.6 million (six), and liability insurance – to UAH 2.797 million (136).
The amount of remuneration for the provision of such intermediary services for the nine months of 2018 almost tripled, to UAH 20.138 million.
Reinsurance premiums received by resident reinsurers under reinsurance contracts signed by brokers in favor of reinsurers for the specified period increased by 180%, to UAH 14.321 million (under 106 contracts). In particular, premiums under property insurance contracts amounted to UAH 13.496 million, liability – to UAH 792,400, and mandatory insurance – to UAH 32,500.
Insurance claim fee payments compensated by resident reinsurers were not made under such contracts.

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UKRAINE’S INSURERS RAISE NET PREMIUMS BY 22%, GROSS PREMIUMS BY 11% IN 9M

Ukrainian insurance companies in January-September 2018 collected net premiums in the amount of UAH 25.388 billion, which is 22.1% more than in the same period of 2017, according to the website of the National Commission for the State Regulation of the Financial Services Market.
According to the regulator, gross insurance premiums collected by insurers for this period amounted to UAH 34.875 billion (11.1% up).
The share of net insurance premiums in gross insurance premiums for 9M 2018 increased by 6.6 p.p. compared to the same indicator of 2017 and amounted to 72.8%.
In January-September this year insurers paid out UAH 8.467 billion in net insurance claim fees, which is 18.3% more than in the same period a year earlier. The payout ratio decreased from 34.4% from 33.3%.
According to the regulator, gross insurance payments increased by 18.7%, to UAH 8.755 billion, the level of gross payments rose to 25.1% from 23.5%.
According to the commission, outgoing reinsurance operations for 9M 2018 decreased by 11.6%, to UAH 11.718 billion, in particular due to the decrease in domestic reinsurance by 10.5%, to UAH 9.487 billion, by non-resident reinsurers by 16.2%, to UAH 2.232 billion.

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UKRAINE’S INSURERS RAISE NET PREMIUMS BY 22%

Ukrainian insurance companies in January-September 2018 collected net premiums in the amount of UAH 25.388 billion, which is 22.1% more than in the same period of 2017, according to the website of the National Commission for the State Regulation of the Financial Services Market. According to the regulator, gross insurance premiums collected by insurers for this period amounted to UAH 34.875 billion (11.1% more).
The share of net insurance premiums in gross insurance premiums for the nine months of 2018 increased by 6.6 p.p. compared to the same indicator of 2017 and amounted to 72.8%.
In January-September of the current year, insurers paid out UAH 8.467 billion in net insurance claim fees, which is 18.3% more than in the same period a year earlier. The level of net payments decreased from 34.4% from 33.3%.
According to the regulator, gross insurance payments increased by 18.7%, to UAH 8.755 billion, the level of gross payments rose to 25.1% from 23.5%.
According to the commission, outgoing reinsurance operations for the nine months of 2018 decreased by 11.6%, to UAH 11.718 billion, in particular due to the decrease in domestic reinsurance by 10.5%, to UAH 9.487 billion, by non-resident reinsurers by 16.2%, to UAH 2.232 billion.

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UKRAINIAN INSURERS SEE 22% RISE IN PREMIUMS IN JAN-SEPT, 2019

Ukrainian insurance companies in January-September 2018 collected net premiums for the amount of UAH 25.389 billion, which is 22.1% more than a year ago, the national commission for financial service markets regulation has told Interfax-Ukraine.
Some UAH 8.713 billion was collected under car insurance policies (voluntary car insurance (KASKO), compulsory vehicle owners’ civil liability (OSAGO) and Green Card), which is 22% more than a year ago, UAH 2.451 billion under medical insurance policies (a rise of 21%), UAH 2.407 billion – property insurance (25.9% up), UAH 1.479 billion – fire and natural disaster risk insurance (33.2% up), UAH 1.321 billion – insurance of responsibility to third parties (25% up), UAH 1.251 billion – financial risk insurance (14% down), UAH 1.113 billion – cargo and luggage insurance (42.2% up), UAH 981 million – accident insurance (35.5% up), UAH 838.8 million – medical expenses insurance (32.2% up), UAH 371 million – loan insurance (66.3% up) and UAH 337.4 million – aviation insurance (37.7% down).
During the reporting period, insurance companies specializing in life insurance collected UAH 2.741 billion of net insurance premiums, which is 35.6% more than in January-September 2017, and paid out UAH 536.8 million of insurance claims (a rise of 29.8%).
According to the regulator, the volume of net insurance payments in January-September 2018 increased 18.3%, to UAH 8.467 billion.
Of these, the majority of payments fall on car insurance (KASKO, OSAGO, Green Card) – UAH 4.149 billion, which is 19.6% more than in the same period a year earlier, medical insurance – UAH 1.470 billion (22.9% up) financial risks insurance – UAH 1.050 billion (11.4% down), property insurance – UAH 397 million (2.1 times more), medical expenses insurance – UAH 222.8 million (a rise of 14.1%), fire and natural disasters risk insurance – UAH 170.8 million (4 times more), accident insurance – UAH 139 million (21.6% up), and loan insurance – UAH 63.5 million (a fall of 38.8%).
The regulator also said that reinsurance operations for the first nine months of the current year decreased 11.6%, to UAH 11.719 billion, including a 16.2% fall in nonresident reinsurance, to UAH 2.232 billion.

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