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Russian insurance sector continues to be profitable — Central Bank

Freed funds made it possible to generate the return on capital, Ilya Smirnov noted

MOSCOW, October 24. /TASS/. The Russian insurance segment continues to reap revenues and the stock market recovery along with the change in the procedure of calculating provisions resulted in record-high profits this year, department director of the Bank of Russia Ilya Smirnov said at the forum of insurance market leaders.

"The insurance sector continues to be profitable, and ‘continues’ - this is putting it lightly. Profits of the insurance sector are record high, if I remember properly. Two things are the significant factor of this record-high profit. The first one, is the stock market recovery - currency revaluation in the first instance. It made a significant input to this case. The second, our changes in the procedure of calculating provisions, which made it possible to reduce technical provisions by 12%," Smirnov said. Freed funds made it possible to generate the return on capital, he added.

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