OREANDA-NEWS. May 25, 2009. In continuation of the annual events dedicated to the strategic planning of the company’s regional development, a strategic dialogue on ROSNO’s performance results in the North-West in 2008 and Q1 2009 and business development prospects in this region in 2009 to 2011 was held in St. Petersburg, reported the press-centre of ROSNO.

The event was presided by ROSNO’s board members: Mr. Dmitriy Popov, First Deputy CEO/COO of ROSNO, Mr. Veit Stutz, Deputy CEO of ROSNO, and Mr. Alexei Rozhnev, head of ROSNO’s North-Western Directorate.

The participants of the strategic dialogue were presented the performance results of the year 2008 and the 1st quarter of the running year.

In 2008, the North-Western Directorate’s operations were developing pursuant to ROSNO’s newly adopted strategy "One + 3" directed towards profitable growth, higher management efficiency and better business processes, and ultimately towards the company’s better and more stable competitive power and value proposition. In 2008, in line with its strategy, the Directorate made steps towards more sound insurance portfolio, such as limiting the share of loss-making insurance lines and stimulating development of the top-priority business lines.

For example, in 2008 vs. 2007, premium collected in property insurance (except transport and financial risks insurance) grew by 42%, premium from voluntary medical insurance increased by 7.7%, and premium from accident insurance grew by 6.2%. The target for operating profit was surpassed, with actual figure exceeding 172 million roubles. ROSNO customer satisfaction level regularly measured by the company in accordance with the internationally accepted methodology grew by 30%.

The trend for growth in the profitable segments was retained by the Directorate in the 1st quarter of 2009: the volume of premium collected in the personal property insurance segment increased by 19%, accompanied by the 31% increase in the travellers insurance, 19% growth in insurance coverage of corporate civil liability for operation of hazardous industrial objects, and virtually 240% growth of premium in the construction and assembly risks insurance sector. On the other hand, the 1st quarter has seen a decrease in the volume of premium collected in motor insurance: approximately 31.48% drop in the MOD insurance segment and about 22% decrease in OMTPL, which can be attributed to the scheduled optimization of the motor insurance portfolio.

ROSNO’s North-Western Directorate comprises 8 branches, with major volume of business being brought by the branches in St. Petersburg (82.03%), Murmansk (3.85%), Arkhangelsk (2.94%), and Vologda (2.78%).

The abovementioned positive results have been achieved through implementation of a number of regional initiatives. Among those are: better management of selling divisions; opening in early 2009 of a separate motor losses settlement office conforming to the corporate standards and current requirements; establishment in 2008 of a special division responsible for the development of mortgage operations in St. Petersburg and enabling the Directorate to surpass its target premium volume in this segment; completed internal audit; formulation of a 3-year strategy in all of the Directorate’s branches, etc.

The North-Western Directorate’s major strategic objectives for the years 2009 to 2011 have been determined as follows: steady ascension in the group of leading insurance companies of the North-Western Federal Okrug, better business processes, retaining the high level of customer satisfaction and customer loyalty. To follow its leadership strategy, the Directorate plans to focus not only on the traditional sales priorities (voluntary medical insurance, property insurance, MOD, OMTPL), but also on the development of new business lines — in particular, cargo transportation insurance, commercial credit insurance, agricultural risks insurance, and cooperation with SRO.

A considerable role in achieving the established objectives is played by cost reduction, which is to be realized through optimization of administrative expenses incurred within the regional network, closing unprofitable additional offices and agencies, eliminating any duplicated functions, etc. Of particular importance is the development of specialized products adapted to the requirements of the clients residing in the North-Western Region.

"The year 2008 meant much for our company. During the year, we not only faced the need to develop immunity against crisis, but also underwent a large-scale restructuring process. Within our Directorate, these structural changes have resulted in allocation of a special division responsible for the quality of customer services, separation of the loss settlement function from the customer service function in the Directorate and its branches, opening of a single call centre, etc. We invested maximum effort in achievement of the major objective of restructuring — building a productive interaction between the selling divisions and the customer service divisions within the new structure, and making each employee understand the underlying business processes. All of the above factors have enabled us to achieve positive results", commented on the Directorate’s performance Mr. Alexei Rozhnev.

Mr. Dmitriy Popov, First Deputy CEO/COO of ROSNO, approved the Directorate’s performance results and the introduced development strategy. "We attach great importance to developing our business in such a strategically important region as the North-West of Russia. Following the course of profitable growth, we not only plan retaining sizeable positions in our traditionally strong business lines, but also developing such insurance segments as industrial risks, construction and assembly risks, maritime and aviation risks. In addition, out strategic plans presume retaining regional leadership in medical insurance".