Business news from Ukraine

UKRAINIAN LIFE INSURERS RAISE PREMIUM COLLECTION BY 18.4%

Ukraine’s life insurance companies in 2019 collected UAH 4.624 billion of gross insurance premiums, which is 18.4% more than a year earlier.
According to the report on the website of the National Commission for the State Regulation of Financial Services Markets, 97.1% of the total insurance premiums came from individuals, 2.9% from legal entities.
As of December 31, 2019, the number of insured individuals increased by 14.7%, to 5.133 million.
During this period, life companies paid customers UAH 575.9 million, which is 18.3% less than in 2018.
The value of changes in life insurance reserves amounted to UAH 1.017 billion, which is UAH 1.4 million less than a year earlier. The regulator also notes that the bulk of the change in life insurance reserves is formed under other accumulative insurance contracts, namely, UAH 898.9 million.
In 2019, seven life insurance companies received a negative value of increase in life insurance reserves for a total of UAH 76.10 million, which is associated with the early termination of insurance contracts.
The increase in life insurance reserves amounted to UAH 1.093 billion. The largest increase in insurance reserves (more than UAH 100 million) was declared by four life insurance companies in the amount of UAH 574.3 million, UAH 169.6 million, UAH 146.4 million and UAH 122.3 million, respectively.
According to the commission, the number of life insurance companies in Ukraine at the end of 2019 decreased to 23.

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VOLUME OF REINSURANCE BY UKRAINIAN INSURERS IN AUSTRIA IN 2019 GREW 2.5-FOLD

The volume of reinsurance by Ukrainian insurers in Austria in 2019 grew 2.5-fold, to UAH 639 million, being 19.4% of the total reinsurance volume abroad (8.5% in 2018), according to a posting on the website of the National Commission for Financial Service Markets Regulation of Ukraine.
The share of reinsurance in Germany increased from 18.6% in 2018 to 22.3% in 2019 (to UAH 535 million), the U.K. it decreased from 23.7% to 17.3%, to UAH 569.9 million, Poland it decreased from 12.4% to 10% (UAH 331.3 million), in Switzerland decreased from 10.6% to 7% (UAH 229.8 million), in France increased to 6% from 5% (UAH 196.8 million), in the United States decreased from 4.2% to 3.6% (UAH 119.6 million).
According to the regulator, outbound reinsurance operations for the reporting period decreased 6.8%, to UAH 16.713 billion. In addition, reinsurance with nonresident reinsurers increased 10%, to UAH 3.298 billion.
Payments compensated by resident reinsurers amounted to UAH 297.8 million, which is 30.9% less than in 2018, for nonresident reinsurers it was UAH 2.21 billion, or 9% more than in 2018.
In relation to gross insurance premiums, the share of outbound reinsurance as at December 31, 2019 was 31.5%, which is 4.8 percentage points less than on the same date a year earlier.

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NUMBER OF COMPLAINTS AGAINST INSURERS 1.3% DOWN IN SIX MONTHS

The National Commission for the State Regulation of the Financial Services Market received 2,598 complaints about the work of insurance companies in February-July 2019, which is 1.3% (62) less than for the same period 2018, according to the website of the regulator.
According to the commission, the leaders in the number of complaints received were ASKA (158, UAH 6.17 million paid), Omega Insurance Company (173, UAH 8.99 million paid), Oranta Insurance Company (136, UAH 2.71 million), and U.S.I. (88, UAH 1.3 million).
According to the regulator, a total of 555 complaints were received against these companies over the specified period. The total amount of insurance claim fee payments based on the results of consideration of applications was UAH 19.17 million.
In general, the total amount of insurance compensation by insurance companies following the consideration by the commission of applications for the indicated period was UAH 44.57 million.
The commission said complaints came from individuals and legal entities, including people’s deputies, the Cabinet of Ministers, the Office of the President, parliamentary committees, ministries, and departments.

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UKRAINIAN INSURERS SEE 20% RISE IN NET PREMIUMS

Ukrainian insurance companies in January-June 2019 collected net premiums in the amount of UAH 20.121 billion, which is 20.1% more than in January-June 2018, according to the website of the National Commission for Financial Service Markets Regulation.
According to the regulator, the volume of gross insurance premiums collected by insurers for this period amounted to UAH 27.291 billion (16.5% more than in 2018).
The commission notes that the increase in gross insurance premiums was recorded in almost all types of insurance: in voluntary car insurance (KASKO), compulsory vehicle owners’ civil liability (OSAGO) and Green Card by UAH 1.26 billion, or by 21.1%, medical insurance by UAH 711.3 million, or by 42.5%, insurance against fire risks and natural hazards by UAH 662.1 million, or 31.2%, property insurance by UAH 422.5 million, or by 13.4%, life insurance by UAH 358 million, or 20.7%, medical expenses insurance by UAH 354.2 million, or 65.3%, and aviation insurance by UAH 164 million or 63.8%.
The share of net insurance premiums in gross insurance premiums for the first six months of 2019 was 73.7%, which is 2.2 percentage points more compared to the same period of 2018.
In January-June 2019, insurers paid UAH 6.527 billion in net payments in claims, which is 11.3% more than a year ago. The level of net payments fell from 35% to 32.4%.
According to the regulator, gross payments in claims grew by 49.8%, to UAH 6.668 billion. The level of payments fell from 25.9% to 24.4%.
A high level of gross payments in claims registered in car insurance (11.1% up), medical insurance (29.1% up) and medical expenses insurance (25%).

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VOLUME OF REINSURANCE OF RISKS BY UKRAINIAN INSURERS IN AUSTRIA IN JAN-MARCH TRIPLED TO UAH 168 MLN

The volume of reinsurance of risks by Ukrainian insurers in Austria in January-March 2019 tripled to UAH 168.5 million and accounted for 21.5% of the total reinsurance abroad, according to the website of the National Commission for the State Regulation of the Financial Services Market.
According to the regulator, reinsurance in Switzerland decreased by 4.9 times, to UAH 54.1 million. The reduction of Switzerland’s share in the total reinsurance of Ukrainian risks abroad decreased to 6.9% in Q1, 2019 from 31.3% in Q1, 2018.
The share of reinsurance in Germany increased from 13.9% to 21.3% (UAH 167.6 million), Great Britain from 15.5% to 18.4% (UAH 144.8 million), in Poland decreased from 11.5% to 10.2% (UAH 79.9 million), France increased from 3.4% to 5.4% (UAH 42.5 million).
According to the regulator, outgoing reinsurance operations in the first quarter of 2019 rose by 2.2%, to UAH 4.433 billion due to the increase in domestic reinsurance by 4.5%, to UAH 3.658 billion. At the same time, reinsurance of non-residents declined by 7.6%, to UAH 785 million.

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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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