PPF Life Insurance 2015 results: written premiums increased 4.4% to RUB 2.8 billion
PPF Life Insurance, one of the biggest life insurers in the Russian market, achieved 4.4% year-on-year growth in written premiums to RUB 2.8 billion in 2015. The majority (RUB 2.2 billion) was raised by the company’s own agency network. The company continued to expand its regional network, opening new offices in Stavropol, Chita, Omsk, and Angarsk as well as in Russia’s capital, Moscow.
PPF Life Insurance reported year-on-year growth in all of its core business lines. Long-term with-profits life insurance schemes predominated in its product range (accounting for RUB 2.3 billion of the total written premiums, up 6%), while special pension-related life insurance schemes generated RUB 464 million (up 1.5%). In 2015, the company paid out more than RUB 1 billion in claims (up 8.3%). The company holds technical reserves of RUB 7 billion.
Vít Sedláček, PPF Life Insurance Chairman, noted: “In 2015, the Russian life insurance market developed favourably, with client demand shifting from loans-related products towards mid-term and long-term life insurance schemes, the proportion of which grew considerably in this market segment. 2015’s growth in written premiums is mainly attributable to the rising need of clients to accumulate reliable financial provisions in case of unexpected outlays. More than 72% of our clients have therefore opted for long-term with-profits life insurance schemes covering a broader range of risks insured. We continuously improve the range of our products with a view to being able to offer universal cover to our clients. For example: in 2015 we increased the number of terminal diseases covered by our assurance to 27; added insured risk for surgical operations; expanded coverage to include pre-invasive cancer diagnoses under a special programme for women; launched a scheme of accident insurance for the whole family; and extended our programme for children to include insured risk for 10 terminal diseases. We have also significantly improved the standard of our customer services: we now make payments within seven business days of a claim in 98% of cases, and the Personal Cabinet on-line application facility helps clients to pay life policy premiums on-line. Going forward, our priority continues to be the development of our agency network – our key sales channel which generated 13% growth last year despite the negative trends in the Russian economy”.