Ingosstrakh Posts 57% Net Profit Growth in H1 2024 as Premiums Reach 103.8 Billion Rubles

Summary: Sovetskoye Aktsionernoye Obshchestvo Ingosstrakh (Ingosstrakh) increased its net profit by 57% in the first half of 2024 to 14.329 billion rubles against 9.132 billion rubles a year earlier, according to the insurer's interim accounts under Russian accounting standards (RSBU). Premiums across insurance, co-insurance and reinsurance operations grew 12% to 103.8 billion rubles, total payouts rose 23% to 48.1 billion rubles, and capital increased almost 12% to 130.6 billion rubles as of June 30, 2024.

The half-year result

The interim RSBU reporting of Ingosstrakh shows net profit of 14.329 billion rubles for January-June 2024 against 9.132 billion rubles for the same period of 2023, an increase of 57%. Income from insurance operations for the six months grew 56% year on year to 22.9 billion rubles from 14.6 billion rubles, while acquisition expenses rose to 24 billion rubles from 19 billion rubles a year earlier. Income from investment activity, by contrast, declined to 6.8 billion rubles in the first half of 2024 from 9.1 billion rubles in the same period of 2023.

Premiums and payouts

Insurance premiums under insurance, co-insurance and reinsurance operations increased 12% over the first half of the year to 103.8 billion rubles against 91.3 billion rubles for the first half of 2023. Total payouts of the insurer for the period grew 23% to 48.1 billion rubles compared with 39.1 billion rubles in the first half of 2023, meaning payout growth ran ahead of premium growth in the half.

Balance sheet at June 30, 2024

Assets grew by more than 8% and exceeded 353 billion rubles on June 30, 2024, against 326 billion rubles on the same date a year earlier.
Capital increased almost 12% to 130.6 billion rubles on June 30, 2024, compared with 116.7 billion rubles on December 31, 2023.
Charter capital remained unchanged over the period at 28.3 billion rubles.
Reserves in lines other than life insurance grew 7% to 182 billion rubles against 175 billion rubles a year earlier.

Reading the numbers

The structure of the result points to underwriting as its engine: insurance activity income grew 56% while investment income fell, so the 57% profit increase was earned on the insurance book rather than on the investment portfolio. The 23% payout growth against 12% premium growth marks the cost side of the same half, and the 7% build-up of non-life reserves to 182 billion rubles shows the balance sheet absorbing that claims load. Capital growth of almost 12% in six months, on an unchanged charter capital of 28.3 billion rubles, indicates retained earnings as the source of the increase.