Market entry in Russia already bears fruit

Raiffeisen Life Insurance, which was established in 2009 in the course of implementing UNIQA’s expansion strategy, developed positively during the reporting period. Together with ZAO Raiffeisenbank, it offers customised life insurance products. Thanks to the well-established “Raiffeisen” brand, which is strongly associated with trust, the strategic partnership with this leading Austrian banking group has proven itself exceptionally well here. There are around 50 employees operationally active in Russia, and UNIQA products are sold in over 200 bank offices throughout the country. The bank assurance products have also been specially adapted to the country’s needs and opportunities.

The newly founded company profits equally from the product and sales experience from Austria as well as the Central and Eastern European subsidiaries, thanks to its full integration within the UNIQA Group. The premium potential is exceptionally high – currently an average of only €183 in insurance premiums is paid p. p. annually by the 142 million residents of Russia. In contrast, this figure is €1,935 in Austria. Already in the first full year of its activity, Raiffeisen Life Insurance generated premiums exceeding €11 million and gained more than 51,000 new customers. The greatest share of the premiums originated from sales of the classic savings principle of endowment policies and the hedging of consumer loans, auto loans and credit cards. The life insurance market is expected to grow further in 2011. In like manner, the demand for financing volume from Raiffeisen Bank Russia should also increase and this is expected to result in additional large growth potential for Raiffeisen Life Insurance.