OREANDA-NEWS. August 25, 2010. According to preliminary data for the first 6 months of 2010 the consolidated insurance premium collected by the companies of the INGO Group:

Ingosstrakh OJSIC (Russia), INGO Uktaine (Ukraine), Garant (Austria), Ingo Nord (Finland), Belingostrakh (Belarus), INGO Armenia (Armenia), Kyrgyzinstrakh (Kirgizia), INGO Uzbekistan (Uzbekistan), IC Ingosstrakh-Life (Russia), Emergency Insurance Company (Russia), Ingosstrakh ONDD Credit Insurance (Russia), JSIC INGO Ukraine Life (Ukraine), totalled RUR 26.3 billion according to IFRS, which was 11% less than the RUR 29.4 billion collected in premiums in the same period of 2009. The fall in earnings resulted from the company pursuing a conservative approach towards risks. While the insurance market is still affected by underpricing in the majority of insurance sectors the company still employs a very strict approach to underwriting and very carefully selects risks. Another factor that contributed to the fall in total premiums was the loss by the INGO group of SOFAG in the fourth quarter of 2009. If SOFAG’s premiums are not taken into account, the overall fall in premiums was about 5%.

The consolidated insurance premiums of the group were collected primarily by Ingosstrakh, whose collected amounts represent 92% of the group’s total premiums. The insurance portfolio of Ingosstrakh at the end of the first six months of 2010 broke down by type of insurance as follows: 54% was motor vehicle and liability of motor vehicle owners insurance; 17% was property insurance against fire and accompanying risks, 14% was personal insurance, 6% was cargo insurance, comprehensive insurance of vessels and insurance of the liability of vessel owners, 9% was other types of insurance.

In the reporting period the INGO group paid indemnities of RUR 15.1 billion, which was 12% less than in the same period of last year.

The loss coefficient for the INGO group for the first six months of 2010 is at 70%, which, when combined with a balance expenditure policy and professional management of the group’s investment assets, allows the group to maintain an operations coefficient 90%. This coefficient shows the results of the group’s insurance and investment activities.

Consolidated net profit for the first 6 months of 2010 was RUR 1.3 billion.

The group’s consolidated assets at July 1st 2010 were RUR 73.7 billion. At the end of 2009 the group had consolidated assets totalling RUR 72.6 billion. The insurance reserves have grown to RUR 45.6 billion from 43.7 billion at the end of 2009, the equity capital was RUR 19.2 billion (up 6% on 2009)

As was noted by Constantine Sokolov, ‘the performance results of the INGO group for the first six months of 2010 calculated in accordance to IFRS means that despite the crisis, the group still demonstrates a level of financial stability completely unique in the Russian market.’