Chapter III. ENSURING FINANCIAL STABILITY AND SOLVENT CAPACITY OF INSURERS

Commentary on Article 25 of the Federal Law “On the organization of insurance business in the Russian Federation”

1. The provisions of this article are aimed at ensuring the stability of insurers operating in the Russian market. In this regard, the Law establishes special requirements for such legal entities, which differ significantly from the general requirements of the Civil Code of the Russian Federation. The Law forms such requirements as guarantees of financial stability and solvency.

Financial stability of the insurer- this is its ability to fulfill its obligations under insurance contracts with any change in the economic situation. The basis for the financial stability of insurers is the presence of their paid-up authorized capital and insurance reserves, as well as a reinsurance system<24>.

———————————

<24>The commentary on this article is presented taking into account the research contained in the following publication: Mamedova E.A., Shakhverdieva Z.T. Analysis of the financial stability of the insurer and assessment of insurance operations // Problems of modern economics. 2011. N 1 (37); URL: http://www.m-economy.ru/art.php?nArtId=3472.

The financial stability of the insurer is achieved by:

— increasing the authorized capital and other own funds of the insurance organization (own funds, along with the authorized capital, include additional and reserve capital, special-purpose funds, retained earnings);

— bringing the size of the authorized capital into line with the amount of net assets in accordance with the law;

— application of correctly calculated, differentiated and sufficiently flexible insurance rates;

— formation in the manner established by regulatory and methodological documents of insurance reserves that guarantee insurance payments;

— compliance with the maximum liability standard of the insurer for a particular risk;

— reinsurance with insurance of large risks;

— compliance with the standard size of the ratio between the assets and liabilities of the insurer;

— reducing accounts receivable and payable.

To obtain reliable information about the financial stability of the insurer, a number of financial analysis methods are used, which are based on four assessment criteria: liquidity (solvency), profitability (profitability), business activity and turnover of financial resources.

If in practice financial stability is defined as the potential (balance sheet) ability of a company to pay off its obligations and is associated with an analysis of the structure of the company’s sources of funds, then liquidity (solvency) is the ability to cover (pay) obligations with assets. The solvency of the insurer is determined by the amount of reserves free from liabilities. To ensure solvency, the value of these free reserves should be greater, the greater the volume of operations of the insurance company.

The specificity of the concept of the insurer's solvency is manifested in the peculiarities of the formation of obligations and resources for their fulfillment, as well as in the need for additional financial guarantees for the fulfillment of obligations as a reaction to the risky nature of the insurance company's activities. The insurer can guarantee the unconditional fulfillment of its obligations only with its own capital, which acts as an additional financial guarantee of the insurer's solvency. Such a guarantee is a solvency reserve, which, in economic terms, represents the insurer’s funds free from obligations. If the need for insurance reserves is generated by insurance risk, then the need for a solvency reserve is generated by the risk of the insurer’s activities in market conditions.

The main criteria for solvency can be formulated as follows:

— due to the fact that the mirror of the insurer’s financial condition is its balance sheet, it determines the solvency indicator. The objectivity of the solvency indicator is determined by the quality of accounting;

— solvency is an evaluative indicator, and as such should provide the opportunity for comparison both dynamically (solvency increases or decreases) and territorially (solvency between regions, districts, etc.);

— the solvency indicator is a complex, aggregated indicator. The accuracy of its calculation is determined both by the accuracy of the source data and their coincidence in time;

— one of the conditions for ensuring the solvency of insurers is compliance with the regulatory relationships between assets and the insurance liabilities they have accepted.

Guarantees are the means, methods and conditions by which the insurer carries out its professional activities.

Financial stability (stability) is not only the absence of crises. A system can be considered stable if it:

- facilitates the efficient allocation of economic resources both in space and time, as well as other financial and economic processes (for example, saving and investing, lending and borrowing, creating and distributing liquidity, asset pricing and ultimately wealth accumulation and growth production);

— allows you to evaluate, quote and distribute financial risks and manage them;

— maintains the ability to perform these important functions even in the face of external shocks or increasing imbalances.

Thus, the purpose of the commented article is to create such means and methods that will allow an individual entity to work in the insurance market for as long as possible.

The law defines a list of guarantees to ensure the financial stability and solvency of the insurer, which include:

1) economically justified insurance rates - payment of an insurance premium per unit of sum insured, taking into account the volume of insurance and the nature of the insurance risk. It is usually set as a percentage of the insured amount. The tariff system is structured in such a way that there is a range of insurance tariff rates, a system of discounts, a system of coefficients;

2) insurance reserves sufficient to fulfill obligations for insurance, co-insurance, reinsurance, mutual insurance - funds formed by insurance organizations to guarantee the payment of insurance compensation;

3) own funds (capital) - funds formed directly by the insurance companies themselves and their founders;

4) reinsurance - a set of relations between insurers for risk insurance. The insurer, accepting for insurance a risk that exceeds its ability to insure such a risk, transfers part of the risk to another insurer.

1. Own funds (capital) of insurers (with the exception of mutual insurance companies) include authorized capital, reserve capital, additional capital and retained earnings.

Authorized capital represents the amount of funds initially invested by the owners to ensure the statutory activities of the organization. The authorized capital determines the minimum amount of property of a legal entity that guarantees the interests of its creditors. The authorized capital ensures the financial stability of the company at the time of its creation and for the initial period of activity, when the volume of receipts from insurance premiums is small.

The minimum amount of authorized capital is determined by current legislation and the constituent documents of the company. It can be used both to ensure statutory activities and to cover the costs of insurance payments in the event of insufficient insurance reserves and insurance proceeds.

Reserve capital- this is the insurance capital of an organization, intended to cover losses from business activities, as well as repay the organization’s bonds and repurchase its own shares in the absence of other funds.

The creation of reserve capital is carried out in accordance with the legislation of the Russian Federation and the constituent documents of the organization at the expense of its net profit.

Reserve capital (reserve fund) is required to be created by joint-stock companies. At their own discretion, enterprises of other forms of ownership can create it, if this is provided for by their constituent documents and accounting policies. In joint-stock companies, a reserve fund is created in the amount provided for by the company's charter, but not less than 5% of its authorized capital. The reserve fund of the company is formed through mandatory annual contributions until it reaches the size established by the charter of the company. The amount of annual contributions is provided for by the company's charter, but cannot be less than 5% of net profit until the amount established by the company's charter is reached. The company's reserve fund is intended to cover its losses, as well as to repay the company's bonds and repurchase the company's shares in the absence of other funds. The reserve fund cannot be used for other purposes (see for more details Article 35 of the Federal Law of December 26, 1995 N 208-FZ “On Joint-Stock Companies”).

Extra capital represents a part of the organization’s capital that is not associated with contributions from participants and capital gains from profits accumulated over the entire period of the organization’s activities.

Sources of formation of additional capital are:

— increase in the value of non-current assets based on the results of revaluation;

— share premium;

— positive exchange rate differences resulting from the contribution of foreign currency to the authorized capital of the organization;

- funds allocated from the budget and used to finance long-term investments, etc.

Use of additional capital funds:

— repayment of the amount of decrease in the value of non-current assets as a result of revaluation;

— negative exchange rate differences resulting from the contribution of foreign currency to the authorized capital;

— increase in the authorized capital of the organization;

— distribution of additional capital funds between the founders of the organization;

— in case of disposal of a previously overvalued fixed asset<25>.

———————————

<25>See: Bychkova S.M. Financial accounting: Textbook. M: Eksmo, 2008.

retained earnings— this is the final financial result obtained based on the results of the organization’s activities for the reporting year; characterizes the increase in capital for the reporting year and for the entire period of the organization’s activities (capital accumulation for this period). A distinction is made between retained earnings without taking into account the decision to pay dividends (distribution of profits between participants) and retained earnings taking into account the decision to pay dividends (distribution of profits between participants); the first is shown on the income statement as net income, the second on the balance sheet.

The organization's profit can be used for:

— payment of dividends (income) to the founders (participants) of the organization;

— formation of reserve capital;

— covering losses from previous years;

— replenishment of the authorized capital;

— other areas in accordance with accounting policies.

Thus, funds from retained earnings can also be used as an additional resource for repaying the insurer's obligations.

Insurers must invest their own funds (capital) on the following terms:

A) diversification. Diversification, i.e. expanding the scope of the campaign by expanding the range, developing new areas of activity, etc. It should be taken into account that in relation to insurance companies, the current legislation establishes a number of restrictions, including regarding permissible types of activities and sources of income. They are not entitled to engage in activities other than insurance and related activities. In this regard, diversification of insurance reserves and the insurer’s own funds in most cases is achieved by expanding the types of insurance activities;

b) liquidity. Liquidity is the most effective indicator that indicates the value of the insurer's assets, i.e. their real market valuation, taking into account the company's position in the market. Insurance reserves and the insurer's own funds must be highly liquid to guarantee its stable existence in the market. However, at present, in most cases, the assets of insurers do not have high liquidity, which leads to the massive suspension and revocation of licenses to carry out insurance activities;

V) repayment. Repayment is the principle of financial, monetary relations, according to which loan funds received by the borrower for temporary use are subject to mandatory and timely return to the lender, the owner of the funds. The law does not specify in what case the principle of repayment is implemented in relation to the activities of insurers. The practice of the activities of these entities indicates that the principle of repayment is implemented by attracting such a number of clients that will compensate for the amount of payments made for insurance compensation;

G) profitability. Profitability provides for its different understanding and perception. However, in relation to insurers, it seems appropriate to consider this concept as a rate of profitability and efficiency of the insurer’s activities.

Insurers do not have the right to invest their own funds (capital) in bills of legal entities, individuals and issue loans at the expense of their own funds (capital), except in cases established by the insurance supervisory authority.

The insurance supervisory body, depending on the specialization of insurers, the specifics of insurance conditions, the introduction of new investment projects, establishes a list of assets permitted for investment, as well as the procedure for investing its own funds (capital), which provides for requirements for issuers of securities and (or) issues of securities depending on assigned ratings, inclusion in quotation lists by organizers of trading on the securities market, to the structure of assets in which part of the insurers' own funds (capital) is allowed to be placed (including requirements stipulating the maximum permitted percentage of the value of each type of asset or group of assets from the amount of own funds (capital) of the insurer or part thereof).

Investment of own funds (capital) is carried out by insurers independently or by transferring part of the funds to the trust management of a management company.

1. In its activities, any legal entity is faced with a situation in which it is necessary to change the previously established size of the authorized capital, and such changes can be either upward or downward.

An increase in the authorized capital can be carried out in the following cases:

— raising additional funds from participants (founders) or additional admission of participants (founders), as well as additional issue of shares or increasing their par value;

— directions for its increase in retained net profit, additional capital, as well as accrued founder’s income (dividends);

— unitary enterprises receive additional funds in the form of subsidies from state and municipal bodies.

The authorized capital may be reduced in the following cases:

— withdrawal of participants (founders) from the organization or repurchase of shares by a joint-stock company with their subsequent cancellation;

— bringing the size of the authorized capital to the value of net assets and repayment due to its uncovered loss, as well as covering the loss by reducing the size of contributions (shares) of participants or the par value of shares;

— withdrawal of part of the authorized capital of a unitary enterprise.

The founders can decide to reduce or increase the authorized capital, based on both their own interests and the requirements of the law, which is fully implemented in relation to insurers.

Current legislation imposes special requirements on insurers, since their activities are related not only to the conclusion of insurance contracts, but also to the making of payments under such contracts. In this regard, as a special guarantee of ensuring the rights and legitimate interests of policyholders, the Law establishes increased requirements for the size of the minimum allowable authorized capital of the insurer, within which the company is liable for its obligations. The amount of such capital directly depends on the potential damage, which is determined by the occurrence of the corresponding insured event. The Civil Code of the Russian Federation provides that the authorized capital of a company determines the minimum amount of property of the company that guarantees the interests of its creditors. It cannot be less than the amount provided by law, i.e. commented normative act.

In para. 1, paragraph 3 of this article, the Law imperatively establishes that insurers (with the exception of mutual insurance companies) must have a fully paid-up authorized capital, the amount of which must not be lower than the minimum amount of authorized capital established by the commented Law.

In this regard, the provisions of the commented Law limit the freedom of activity of the founders of the insurance company in terms of reducing the authorized capital if its size is equal to the minimum allowable, taking into account the coefficients established by the Law. Thus, insurers in most cases can make changes to the authorized capital only by increasing it.

Another significant limitation on the freedom of activity of the insurer is the procedure for making changes to its constituent documents. The law allows for the possibility of changing the size of the authorized capital no more than once every two years with the mandatory establishment of a transition period (see paragraph 3, paragraph 3 of the commented article). Thus, the Law guarantees the stability of the legal position of the insurer for a certain period of time, as well as the possibility of gradually introducing changes during the transition period, and it should be noted that the regulations do not establish any requirements for such a period, including its duration, as well as the beginning, end and totality of activities to be carried out during a given period.

In this regard, the introduction of a transition period is aimed at fulfilling obligations, including for previously incurred payments in the general manner, regardless of changes made to the constituent documents.

A special guarantee of the stability of insurers is the requirement to contribute exclusively the own funds of the founders (participants) of the relevant company to the authorized capital. The prohibition is not directly stated, however, in para. Clause 4, clause 3 of the commented article establishes a ban on the introduction of borrowed funds and pledged property into the authorized capital of the insurer. According to the general rule established by the Civil Code of the Russian Federation, foreclosure can only be applied to property owned by the debtor. In the case of borrowed funds, the insurer cannot act as their owner, but only uses them on the terms and conditions established by the relevant agreement. Upon expiration of the loan (credit) period, the specified funds must be returned to their owner - the lender. Property encumbered with a pledge is primarily used to pay off obligations towards the pledgee if the pledgor has not fulfilled his obligations in a timely manner. The priority of the claims of the mortgagee indicates that the claims of other creditors cannot be repaid at the expense of such property, which neutralizes the value of the authorized capital and does not allow ensuring the rights and legitimate interests of policyholders in the event of an insured event.

The minimum amount of the insurer's authorized capital consists of two main components: the basic amount of capital and the coefficients applied to certain types of insurance. The constant component is determined by the provisions of the commented Law.

In para. 2, paragraph 3 of this article provides that the minimum amount of the authorized capital of an insurer providing exclusively medical insurance is established in the amount of 60 million rubles. The minimum amount of the authorized capital of another insurer is determined on the basis of the basic size of its authorized capital, equal to 120 million rubles, and the following coefficients:

1 - for insurance of objects provided for in paragraphs 2 - 6 of Art. 4 Laws;

1 - for insurance of objects provided for in paragraphs 2 and 3 of Art. 4 Laws;

2 - for insurance of objects provided for in paragraph 1 of Art. 4 Laws;

2 - for insurance of objects provided for in paragraphs 1 - 3 of Art. 4 Laws;

4 - for the implementation of reinsurance, as well as insurance in combination with reinsurance.

1. The list of documents confirming the fulfillment of the requirements for the authorized capital of the insurer established by the commented Law is established by the insurance supervisory authority.

At present, Order of the Ministry of Finance of the Russian Federation of May 23, 2011 N 63n continues to be in force, which approved the List of documents confirming the fulfillment of the requirements for the authorized capital of the insurer, and documents confirming the sources of origin of funds contributed by the founders of the license applicant - individuals to the authorized capital.

Confirmation of payment by the founders (shareholders, participants) of the authorized capital of the insurer in cash is made by submitting the following documents:

— copies of payment orders and (or) other settlement documents confirming the transfer of funds from the founder (shareholder, participant) of the insurer to the insurer’s current account as payment for its authorized capital, certified by the signatures of the manager and chief accountant and the seal of the bank;

— bank statements on transactions on accounts confirming the crediting of funds to pay for the authorized capital of the insurer, certified by the director, chief accountant and the seal of the bank.

In the case of a non-monetary expression of a share in the authorized capital, the fact of its contribution is confirmed:

— notarized copies of documents confirming the ownership rights of the founder (shareholder, participant) of the insurer to property that is a contribution to the authorized capital of the insurer;

— a copy of the act of acceptance and transfer by the founders (shareholders, participants) of the property insurer in payment of the authorized capital of the insurer;

— a copy of the conclusion of an independent appraiser confirming the valuation of the property contributed as payment for the authorized capital of the insurer;

— a copy of documents confirming the compliance of the independent appraiser with the requirements of the Federal Law of July 29, 1998 N 135-FZ “On Valuation Activities in the Russian Federation”;

— an extract from the register of rights to real estate and transactions with it, confirming the transfer of ownership of real estate from the founders (shareholders, participants) of the insurer to the insurer, as well as the absence of collateral encumbrances;

— financial statements of the founders (shareholders, participants) of the insurer, compiled as of the reporting date preceding the date of registration of the insurer’s charter (amendments made to the insurer’s charter in connection with an increase in the size of the authorized capital), with a mark from the tax authority and enclosing copies of audit reports (if any);

— financial statements of the founders (shareholders, participants), the insurer, compiled for the reporting period in which the payment of the authorized capital was made (after the date of submission of the next interim or annual financial statements (respectively), a copy of the said financial statements for the last completed reporting period must be submitted according to as of the reporting date following the deposit of funds to pay for the authorized capital), with a mark from the tax authority and attached copies of audit reports (if available);

— an extract from the book of income and expenses of organizations and individual entrepreneurs applying the simplified taxation system, containing information about the total amount of income and expenses taken into account when calculating the taxable base (income of taxpayers who have chosen income as an object of taxation), from Section I “Income and expenses" with the attachment of a certificate to Section I for the last completed reporting period and photocopies of the last page of the specified book containing the signature of the head and the seal of the legal entity, as well as the signature of a tax authority official and his seal certifying the number of pages contained in this book - if the founders (participants, shareholders) of the insurer apply a simplified taxation system;

- a copy of the tax return for the tax paid in connection with the application of the simplified taxation system for the last tax period - if the founders (participants, shareholders) of the insurer apply the simplified taxation system;

— a certificate from the founder (shareholder, participant) of the insurer about the borrowed funds raised by him over the last two years, containing data on the amount of borrowed funds, the dates and terms of their attraction, the purposes of attraction and the directions of actual use, as well as the dates and amounts of repayment of borrowed funds;

— a copy of the agreement on the establishment (creation) of the insurer (or the decision of the sole participant).

Documents compiled on two or more sheets must be bound and the sheets numbered. On the back of the last sheet of each such document, a corresponding entry must be made about the number of sheets, which is certified by the seal and signature of the authorized person of the organization - the originator of the document.

1. Insurers are required to comply with:

1) requirements for financial stability and solvency in terms of:

— formation of insurance reserves (see commentary to Article 26 of the Law);

— the procedure and conditions for investing own funds (capital) and insurance reserve funds (see Order of the Ministry of Finance of the Russian Federation dated July 2, 2012 N 100n “On approval of the Procedure for the placement of insurance reserve funds by insurers”, Order of the Ministry of Finance of the Russian Federation dated July 2, 2012 N 101n “On approval of the Requirements for the composition and structure of assets accepted to cover the insurer’s own funds”);

— the standard ratio of own funds (capital) and assumed liabilities (see Order of the Ministry of Finance of the Russian Federation of November 2, 2001 N 90n “On approval of the Regulations on the procedure for insurers to calculate the standard ratio of assets and insurance liabilities assumed by them”);

2) other requirements established by the commented Law and regulations of the insurance supervisory body.

The parent insurance organization of the insurance group is also obliged to comply with the listed requirements on a consolidated basis.

The procedure for calculation by an insurance organization of the standard ratio of its own funds (capital) and assumed liabilities (including the determination of indicators used for such calculation) is established by the insurance supervisory body. In accordance with Order of the Ministry of Finance of the Russian Federation dated November 2, 2001 N 90n “On approval of the Regulations on the procedure for calculating by insurers the standard ratio of assets and insurance liabilities assumed by them” under the normative relationship between the assets of the insurer and the insurance liabilities assumed by it(hereinafter referred to as the standard size of the solvency margin) is understood as the value within which the insurer, based on the specifics of concluded contracts and the volume of accepted insurance obligations, must have equity capital free from any future obligations, with the exception of the rights of claim of the founders, reduced by the amount of intangible assets and receivables whose repayment terms have expired (hereinafter referred to as the actual size of the solvency margin).

The standard size of the insurer's solvency margin for insurance other than life insurance is calculated on the basis of data on insurance premiums (contributions) and insurance payments under insurance contracts (main contracts), co-insurance and under contracts accepted for reinsurance related to insurance other than life insurance.

The standard size of the solvency margin of a life insurance insurer is equal to the product of 5 percent of the life insurance reserve and the adjustment factor. The adjustment factor is defined as the ratio of the life insurance reserve minus the share of reinsurers in the life insurance reserve to the value of the specified reserve. If the correction factor is less than 0.85, for calculation purposes it is taken equal to 0.85.

The standard size of the solvency margin of an insurer providing life insurance and non-life insurance is determined by adding the standard size of the solvency margin for life insurance and the standard size of the solvency margin for non-life insurance.

The actual size of the insurer's solvency margin is calculated as the sum of the authorized (share) capital, additional capital, reserve capital, retained earnings of the reporting year and previous years, reduced by the amount:

— uncovered losses of the reporting year and previous years;

— debts of shareholders (participants) for contributions to the authorized (joint) capital;

— own shares purchased from shareholders;

— intangible assets;

— accounts receivable whose repayment terms have expired.

The ratio between the actual and standard solvency margins is calculated by the insurer on a quarterly basis. The actual size of the insurer's solvency margin should not be less than the standard size of the insurer's solvency margin. The insurer is obliged to monitor compliance with the ratio between the actual and standard solvency margins on a quarterly basis.

When calculating the standard ratio of its own funds (capital) and assumed liabilities, an insurance organization has the right to take into account subordinated loans received by it in an amount not exceeding one-fourth of its own funds (capital).

Under subordinated loan in relation to the commented Law, it is understood that an insurance organization attracts funds under a loan agreement containing the following conditions:

— the provision of funds to the insurance organization is carried out for a period of at least five years without the right to claim them from the lender before the expiration of the specified period;

— the maximum amount of interest accrued on the loan amount cannot exceed the Bank of Russia refinancing rate in effect on the date of concluding the credit agreement (loan agreement), increased by 1.2 times.

When determining the standard ratio of own funds (capital) and assumed liabilities, an insurance organization does not have the right to take into account subordinated loans received from other insurance organizations. This provision does not apply to insurance organizations that are subsidiaries and dependent companies of the insurance organization - the lender.

The amounts of subordinated loans issued by an insurance organization to its subsidiaries and affiliates are excluded when calculating the standard ratio of equity (capital) and assumed liabilities of the insurance organization that issued these subordinated loans.

1. If an insurance organization violates the normative ratio of its own funds (capital) and assumed liabilities, it is obliged to submit to the insurance supervisory body a plan for improving its financial situation, the requirements for which are established by the insurance supervisory body.

Order of the Ministry of Finance of the Russian Federation dated November 2, 2001 N 90n “On approval of the Regulations on the procedure for calculating by insurers the standard ratio of assets and insurance liabilities accepted by them,” in particular, it is provided that if at the end of the reporting year the actual size of the insurer’s solvency margin exceeds the standard the solvency margin is less than 30%, the insurer submits a financial recovery plan for approval to the insurance supervisory authority as part of the annual financial statements.

The plan for improving the financial situation must include measures to ensure compliance with the ratio between the actual and standard amounts of the solvency margin at the end of each financial year during which its implementation is planned.

The plan indicates specific activities that will help stabilize the financial situation, indicating the duration of the activity and the amount of income (savings) planned to be received from this activity. The plan for improving the financial situation is accompanied by a calculation of the relationship between the actual and standard solvency margin planned for the end of each financial year, during which the plan is expected to be implemented. When drawing up a plan, priority should be given to measures leading to the improvement of the financial position of the insurer in the shortest possible time.

The plan for improving the financial situation may include changing the size of the authorized capital, expanding reinsurance operations, changing the tariff policy, reducing accounts receivable and payable, changing the structure of assets, as well as the use of other methods of maintaining solvency that do not contradict the legislation of the Russian Federation.

The financial recovery plan, approved by the head of the insurance organization, is submitted in two copies. If the plan provides for a change in the authorized capital at the expense of the founders (shareholders), the plan must be agreed upon with the founders (the date and number of the minutes of the meeting of the founders are indicated).

Based on the analysis of the reporting and the submitted plan for improving the financial situation, the insurance supervisory authority gives the insurer recommendations on improving the financial situation, and also monitors the implementation of the measures provided for in the plan for improving the financial situation.

An insurance organization, along with other institutions (banks, exchanges, investment funds, etc.) constitutes an organic element of the financial system of the public economy. The principle of accumulation and subsequent distribution of significant cash flows predetermines the composition and structure of the capital of an insurance company, allocating financial resources as its main part. The latter most often represent, in fact, attracted capital, which for some time constitutes a group of temporarily free funds of the insurer.

The circulation of funds of an insurance organization is not limited to the implementation of insurance operations; it is complicated by the constant involvement of part of the funds in the investment process. This allows us to designate the funds in the insurer’s circulation as its financial potential.

Financial potential An insurance company refers to the financial resources that are in economic circulation and used to conduct insurance operations and carry out investment activities.

The mechanism of formation and use of capital of an insurance company, studied by Professor G. Lukarsh, is presented in Fig. 3.3.

At the time of organizing an insurance company, the first and basic element is equity capital, which is replenished in the process of activity from various sources.

Carrying out insurance operations involves the accumulation of insurance premiums, and the collection of contributions from all participants in the insurance fund is accompanied by the facts of the fulfillment of the insurer’s obligations to pay insurance compensation to only some of them. From the amount of collected payments (insurance premiums), the insurance company's expenses for conducting the business, included in the tariff structure, are repaid. The composition of the financial resources of the insurance company is presented in Fig. 3.4.

Rice.

Rice. 3.4.

The problems of finding the optimal approach to analyzing the financial condition of insurance companies are not new. Recently, various coefficients and indicators have become widely used to characterize the financial stability and solvency of the insurer, methodologically justified and practically tested. This section makes an attempt to propose some general methodological approaches to the analysis of the financial stability and solvency of an insurance company.

Under the financial stability of the insurance organization is understood as such a state of the organization’s financial resources in which it is able to fulfill its current and future financial obligations to counterparties in a timely manner and in the prescribed volume at the expense of its own and borrowed funds. The basis for the financial stability of insurers is the presence of their paid-up authorized capital, insurance reserves, and a reinsurance system.

Financial stability has certain limits. When the lower critical point is reached, i.e. minimum acceptable values ​​of financial stability indicators, a reduction in financial resources may lead to insolvency and bankruptcy of the insurance company.

In addition to the two extreme points - financial stability and insolvency - there are two transitional financial states of the insurance organization - unstable and threshold (Table 3.3).

Table 3.3

Possible options for the financial condition of an insurance company

	Financial condition			Financial insolvency
	sustainable	unstable	threshold		bankruptcy
Solvency	Normal	Variable		Limited	No or limited
Liquidity	Sufficient	Low, may increase	Low, may increase	Rising
Adaptation to the environment			Variable		Variable
Deviations from financial standards		Irregular, separate	Regular	Irregular
Structure	healthy	Normal	Required restructuring	Required restructuring	Restructuring

An approximate algorithm for analyzing the financial stability of an insurance company.

• 1. The starting point in determining approaches to analyzing the financial stability of an insurance company is determining the goals of this analysis. So, the general goal of analyzing the financial stability of an insurance company is to obtain objective, reliable data on its financial position, solvency, financial stability, changes in these indicators in various economic situations depending on various influencing factors.
• 2. At the second stage, specific tasks of analyzing the financial stability of the insurance company are determined, which are differentiated according to the following positions depending on:
  • - from the use of analysis results: internal or external use, within the framework of public reporting or private;
  • - the order of the analysis: planned or unscheduled, comprehensive or selective, mandatory or voluntary, etc.;
  • - users of the analysis results: government control bodies, management and founders of the insurance company, policyholders, creditors, partners, etc.
• 3. The given general positions serve to determine the methods and techniques used in analyzing the financial stability of an insurance company.
• 4. Analysis of the financial stability of an insurance company can currently be based on the following levels of requirements for its implementation:
  • - legislative, i.e. taking into account and within the framework of the requirements and standards of Russian (other) legislation;
  • - individual, taking into account and depending on the requirements and claims of users of the analysis results. In this case, proprietary, systematized and unsystematized approaches are used, including taking into account the requirements of the law.
• 5. Analysis of the financial stability of an insurance company can be presented in the form of a management operation consisting of the following elements: subject, object, subject, principles, method (techniques), equipment and technology, process, collection and processing of initial data for its implementation; the result and costs of its implementation; a subject who makes a decision based on the results (in particular, this may be a subject of analysis); making a decision based on the results of the analysis.

Achieving the goals of analyzing the financial stability of an insurance company is possible only with the effective organization of such a process, which in turn depends on the following factors:

• - staffing of the analysis: qualifications, professionalism and competence of specialists carrying out the analysis;
• - information support for the analysis: completeness and reliability of the initial data about the object of analysis, on the basis of which the analysis is carried out;
• - scientific and methodological support: objectivity, quality, efficiency and complexity of analysis, which are ensured by the perfection of the analysis methods used.
• 6. Selection of indicators of financial stability of the insurance company. Financial stability indicators are generally recognized as the most comprehensive performance indicators of an insurance company, as they characterize its ability to fulfill its obligations both under existing conditions and in the event of probable unfavorable changes in the external and internal environment.

Indicators characterizing the financial stability and solvency of an insurance company are divided into the following main groups:

• 1) indicators generated for official reporting in accordance with the requirements of legislation and insurance supervisory authorities;
• 2) indicators determined depending on the goals of customers and users of the analysis: ratings, expert assessments, etc.

Main indicators (factors) of financial stability insurance company, the condition and influence of which is taken into account when conducting any analysis, regardless of its defining characteristics, are the following:

• - tariff policy;
• - reinsurance;
• - placement of assets;
• - sufficient equity capital;
• - liabilities (including technical reserves).

The last two factors are the basis for determining the financial stability of an insurance company and its solvency within the framework of official accounting reports.

An analysis of the adequacy of equity capital and liabilities is carried out when calculating the ratio of free assets and accepted liabilities of the insurer.

If the actual size of the insurer's free assets based on the results of work for the reporting period turns out to be lower than the normative one, then measures must be taken to improve the financial situation by increasing the size of the authorized capital, expanding reinsurance operations, changing the tariff policy, changing the structure of assets, reducing receivables and payables and etc.

Financial stability of the insurance fund the insurance company is also determined by the indicator of the degree of probability of a shortage of funds (V.F. Konypin coefficient) in any year:

where TC average is the average tariff rate for the entire insurance portfolio; P- number of insured objects.

The lower the coefficient value, the lower the degree of variation in the volume of the total insurance fund and the higher its financial stability.

The financial stability of an insurance organization is ensured due to controllable and uncontrollable factors. Of particular importance are external circumstances that the organization cannot change and is forced to adapt to them, namely:

• - the state of the public economy, economy;
• - state regulation of insurance activities;
• - conditions of the insurance and stock markets;
• - solvency and consumer preferences of the population.

Controllable factors of financial stability cover

internal parameters of the organization, including the following:

• - size of the organization, its specialization;
• - development and sustainability of the client base;
• - organizational management structure;
• - balance of the insurance portfolio;
• - composition and level of insurance reserves;
• - tariff policy;
• - reinsurance policy;
• - investment policy;
• - cost management, etc.

The concept of financial stability is usually associated with the ability of an insurance organization to fulfill its obligations in any current and future period, primarily under concluded insurance contracts. The level of financial stability of an insurance organization as of a specific reporting date characterizes solvency.

Solvency of an insurance company- the ability of the insurance company to fulfill all obligations at a specific reporting date. Solvency is an “instant indicator” of financial stability, as it characterizes the financial condition of the insurer at the time of the analysis.

The solvency of the insurer depends on the sufficiency of the formed insurance reserves. However, due to the probabilistic nature of risk processes, even an accurate calculation of insurance reserves is not a guarantee of their adequacy. That's why guarantee of solvency is served by the insurer having sufficient free, i.e. non-obligated funds. These funds are formed from two sources: paid authorized capital and profit. To ensure solvency, their size must correspond to the size of accepted obligations under insurance contracts. The part of available funds that can be used to fulfill obligations under claims in the event of a shortage of insurance reserves is called solvency margin.

Indicators of the solvency of the insurance company. Solvency indicators include standard indicators for assessing solvency, determining the amount of net assets, and assessing current solvency.

• 1. Indicators for determining the value of net assets and comparison with paid and declared authorized capital serve to determine the correspondence between the size of net assets and the paid (declared) authorized capital. In addition to absolute indicators, relative indicators of the level of net assets in relation to the actually paid authorized capital and indicators of the share of net assets in assets are used.
• 2. Current solvency indicators include indicators of current solvency for the company as a whole, as well as by type of insurance activity. The indicators reflect the sufficiency of the influx of funds in the form of receipts of insurance premiums to cover the current costs of insurance payments (actual losses) and the current costs of running the business. The optimal value of the indicator is more than 100%, which is possible with stable operation of the insurance company with a gradual increase in activity volumes. The indicator can be determined:

Insurance premiums (minus the share of reinsurers) / Insurance payments (actual losses - for types of insurance other than life insurance) + Operating expenses (all indicators minus the share of reinsurers).

• 3. Solvency indicators used by rating agencies Standard&Poors, Moody's Investors, etc.:
  • - the level of solvency of the insurance company (Solvensy Margin), the minimum values ​​of which in different countries, including Russia, have minor differences and are located within 20%, is defined as:

own funds / net premium in the reporting period;

The level of adequacy of coverage with own funds (Capital Adequacy Ratio, or CAR) is calculated using the following formula:

where Uf (n) is the actual (normative) level of solvency.

The values ​​of the CAR indicator are given in table. 3.4.

Table 3.4

Qualitative assessment of the sufficiency of coverage with own funds

• 4. Indicators of the solvency margin or the ratio of the standard and actual amounts of free assets in accordance with the methodology used in the European Union, they characterize the solvency of the insurance company, which is confirmed if the actual value of their own funds corresponds to the standard size, which is considered in three indicators: solvency margin, guarantee fund, minimum guarantee fund.
• 5. Determination of the actual level of solvency. The law establishes certain positions that can be considered as free, unobligated own funds. These include:
  • - identified hidden reserves;
  • - equity capital minus intangible assets (on the balance sheet);
  • - in mutual insurance companies - possible additional payments;
  • - in life insurance - expected profits.

Other indicators of the impact on the financial stability of the insurance company, their calculation and assessment of values ​​are given in Appendix 4.

• 6. Selection of indicators, their grouping, determination of the integral indicator. At this stage, the relationship between various indicators is identified, they are grouped or ungrouped to eliminate interdependent coefficients. The analysis procedure consists of calculating distribution and coordination coefficients, as well as comparing reported values ​​with basic ones (planned, average, reporting for previous periods, industry averages, competitor indicators, theoretical, critical) and constructing their time series. Indicators characterizing the financial stability of an insurance company are divided into groups: absolute, large-scale, structural, relative, incremental. As a general indicator of financial stability a single (integral) indicator can be adopted, obtained depending on the final representation of the financial stability of the insurer, for example:
• 1) comparison of the values ​​of the financial stability indicators of the insurance company with the corresponding values ​​for another company, with the average for the insurance market of the region (Russia), for the same company in the previous period, according to standards, planned or expert calculations;
• 2) calculation and comparison of a comprehensive rating. A comparative conclusion in this case can be made on the basis of an integral rating indicator, calculated as the sum of partial indicators taken with significance coefficients;
• 3) identifying trends in changes in the value of the financial stability of an insurance company (determining average values, dispersion, comparing growth, constructing linear regression);
• 4) identifying the reasons for changes in indicators of the insurer’s financial stability: identifying correlations, conducting factor analysis, etc.
• 7. Control of analysis results. It is assumed that certain management decisions will be made to ensure the maintenance or improvement of the financial stability indicators of the insurance company. In this regard, special attention should be paid to issues of financial planning and budgeting for the activities of an insurance company.

The methodology for calculating the solvency margin for non-life insurance was established by Directive 73/239/EEC of July 24, 1973, and the Methodology for calculating the solvency margin for life insurance was established by Directive 79/267/EEC of March 5, 1979.

Currently, Directive 79/267/EEC on life insurance has been replaced by Directive 2002/12/EC “Solvency I Life Directive” (the first solvency directive for life insurance companies), and Directive 73/239/EEC on insurance other than life insurance, replaced the Directive 2002/13/EC “Solvency 1 Non-life Directive” (the first solvency directive for insurance companies providing insurance other than life insurance).

The methodology for calculating the solvency margin used in Russia is approved by Order of the Ministry of Finance of Russia dated November 2, 2001 No. 90n “On approval of the Regulations on the procedure for calculating by insurers the standard ratio of assets and insurance liabilities assumed by them” and is based on the methodology developed and used in the EU countries since the 70s of the 20th century.

According to this provision, the solvency margin is calculated on the basis of accounting data and reporting of the insurer.

The actual size of the insurer's solvency margin is calculated as the sum of:

• - authorized (share) capital;
• - additional capital;
• - reserve capital;
• - retained earnings of the reporting year and previous years, reduced by the amount:

uncovered losses of the reporting year and previous years, debts of shareholders (participants) for contributions to the authorized (share) capital, own shares purchased from shareholders, intangible assets,

accounts receivable that have expired.

The standard solvency margin of a life insurance insurer is equal to the product 5% life insurance reserve by an adjustment factor.

The adjustment factor is defined as the ratio of the life insurance reserve minus the share of reinsurers in the life insurance reserve to the value of the specified reserve.

If the correction factor is less than 0.85, for calculation purposes it is taken equal to 0.85.

The standard size of the insurer's solvency margin for insurance other than life insurance is calculated on the basis of data on insurance premiums (contributions) and insurance payments under insurance contracts (main contracts), co-insurance and under contracts accepted for reinsurance related to insurance other than life insurance (hereinafter referred to as insurance contracts, co-insurance contracts and contracts accepted for reinsurance).

The standard size of the insurer's solvency margin for insurance other than life insurance is equal to the largest of the following two indicators, multiplied by the adjustment factor.

The first of them is an indicator calculated on the basis of insurance premiums (contributions). The calculation period for calculating this indicator is the year (12 months) preceding the reporting date.

The first indicator is equal to 16% of the amount of insurance premiums (contributions) accrued under insurance contracts, co-insurance and contracts accepted for reinsurance, for the billing period, reduced by the amount:

• - insurance premiums (contributions) returned to policyholders (reinsurers) in connection with the termination (change of conditions) of insurance contracts, co-insurance and contracts accepted for reinsurance for the billing period;
• - deductions from insurance premiums (contributions) under insurance contracts, coinsurance to the reserve of preventive measures for the billing period;
• - other deductions from insurance premiums (contributions) under insurance contracts, coinsurance in cases provided for by current legislation, for the billing period.

An insurer that has received less than a year (12 months) from the moment it first received a license to carry out insurance other than life insurance in the established manner until the reporting date, uses the period from the moment it received the license to the reporting date as the calculation period when calculating the first indicator.

The second is an indicator calculated on the basis of insurance payments. The calculation period for calculating this indicator is 3 years (36 months) preceding the reporting date.

The second indicator is equal to 23% of one third of the amount:

• - insurance payments actually made under insurance contracts, co-insurance and accrued under contracts accepted for reinsurance, minus the amounts of proceeds associated with the implementation of the right of claim transferred to the insurer, which the policyholder (insured, beneficiary) has against the person responsible for the losses indemnified as a result of insurance, for the billing period;

An insurer that has received less than 3 years (36 months) from the moment it first received a license to carry out insurance other than life insurance in accordance with the established procedure until the reporting date does not calculate the second indicator.

The calculation period for calculating the adjustment factor is the year (12 months) preceding the reporting date.

The correction factor is defined as the ratio of the sum:

• - insurance payments actually made under insurance contracts, co-insurance and accrued under contracts accepted for reinsurance, minus the accrued share of reinsurers in insurance payments for the billing period;
• - changes in the reserve of declared, but not settled losses and the reserve of occurred, but not declared losses under insurance contracts, co-insurance and contracts accepted for reinsurance, minus changes in the share of reinsurers in the specified reserves for the billing period, to the amount (not excluding the share of reinsurers):
• - insurance payments actually made under insurance contracts, co-insurance and accrued under contracts accepted for reinsurance for the billing period,
• - changes in the reserve of declared, but not settled losses and the reserve of occurred, but not declared losses under insurance contracts, co-insurance and contracts accepted for reinsurance, for the billing period.

If there are no insurance payments in the calculation period under insurance contracts, co-insurance contracts and contracts accepted for reinsurance, the adjustment factor is taken equal to 1.

If the correction factor is less than 0.5, then for calculation it is taken equal to 0.5, if more than 1 - equal to 1.

An insurer that has received less than a year (12 months) from the moment it first received a license to carry out insurance other than life insurance in accordance with the established procedure until the reporting date, uses the period from the moment it received the license to the reporting date as the calculation period when calculating the adjustment factor.

If actual data on operations for a type of compulsory insurance for at least 3 years indicate stable positive financial results for each year for the specified type of insurance and if the amount of insurance premiums (contributions) for this type of insurance is at least 25% of the amount insurance premiums (contributions) for insurance other than life insurance, then, in agreement with the Ministry of Finance of the Russian Federation, the percentage amounts used to calculate the first and second indicators for this type of insurance can be used in amounts less than that provided for in paragraph 7 of the Regulations, but not less than two-thirds of the values ​​​​established by the specified paragraph.

In this case, the standard size of the solvency margin for insurance other than life insurance is determined as the sum of the standard size of the solvency margin, calculated separately for the types of compulsory insurance specified in the first paragraph of this paragraph, and other types of insurance other than life insurance.

The standard size of the solvency margin of an insurer providing life insurance and non-life insurance is determined by adding the standard size of the solvency margin for life insurance and the standard size of the solvency margin for non-life insurance.

If the standard size of the insurer's solvency margin is less than the minimum amount of the authorized (share) capital established by Art. 25 of the Law on the Organization of Insurance Business in the Russian Federation, then the legally established minimum amount of the authorized (share) capital is taken as the standard size of the insurer's solvency margin.

The actual size of the insurer's solvency margin should not be less than the standard size of the insurer's solvency margin. The ratio between the actual and standard solvency margins is calculated by the insurer on a quarterly basis.

If at the end of the reporting year the actual size of the insurer's solvency margin exceeds the standard solvency margin by less than 30%, the insurer submits a plan for improving its financial position for approval by the Ministry of Finance of Russia as part of the annual financial statements.

The plan for improving the financial situation must include measures to ensure compliance with the ratio between the actual and standard amounts of the solvency margin at the end of each financial year during which its implementation is planned.

The plan indicates specific activities that will help stabilize the financial situation, indicating the duration of the activity and the amount of income (savings) planned to be received from this activity. The plan for improving the financial situation is accompanied by a calculation of the relationship between the actual and standard solvency margin planned for the end of each financial year, during which the plan is expected to be implemented. When drawing up a plan, priority should be given to measures leading to the improvement of the financial position of the insurer in the shortest possible time.

If the insurer fails to comply with the relationship between the actual and standard amounts of the solvency margin, or fails to take measures to improve the financial situation, sanctions are applied to the insurer in accordance with the Law on the Organization of Insurance Business in the Russian Federation.

Ratings of financial stability of insurance companies. A mandatory element of the infrastructure of a developed insurance market are specialized rating agencies that carry out independent assessments of the reliability of insurance organizations. Rating is a comprehensive assessment of the activities of an insurance company, characterizing its ability to timely and fully fulfill its obligations to clients. Based on the rating it is carried out ranging insurance organizations, i.e. assignment of a certain reliability class.

Abroad, rating agencies regularly publish ratings of insurance companies and analytical reviews of their activities. Six rating agencies are globally recognized in the field of insurance: A.M. Best Co, Duff&Phelps, Moody's Investor Service Inc., Standard&Poors Corp., Weiss Research Inc. and Fitch Ratings.

International financial stability ratings insurance company assessments (IFCs) assess the financial strength of an insurance company and its ability to timely service priority obligations to policyholders and contractual obligations. The financial strength rating is assigned directly to the company and not to its liabilities, unless otherwise noted (for example, Fitch Ratings may assign a separate rating to the debt obligations of an insurance company). IFRs can be issued to insurance and reinsurance companies operating in any segment of the insurance market, including life and medical insurance, property and casualty insurance, mortgage insurance, financial guarantee and title insurance, and managed care insurance. .

The financial strength rating does not assess the willingness of an insurance company's management to fulfill obligations or the quality of its claims handling procedures. In the case of RFS, timeliness of payments is considered in relation to both contract terms and/or policy terms. It also recognizes that delays may be acceptable due to circumstances specific to the insurance industry, such as claims processing, fraud investigations and collateral disputes.

The IFS is based on a comprehensive analysis of relevant factors that significantly assess the financial strength of an insurance company, including regulatory solvency characteristics, liquidity, operating performance, financial flexibility, balance sheet strength, quality of management, competitiveness and long-term performance.

Ratings are placed in "Rating Watch" list to notify investors of the potential for a reasonable rating change, as well as the direction of such change. Typically, a rating is placed on the Rating Watch list for a relatively short period of time.

National ratings are not affected by sovereign risk and allow the use of all levels of the rating scale, from “AAA” to “C”. It is important to note that the national rating scale is specific to each country and is designed to meet the needs of the specific local market.

The national scale of a particular country is not linked to the financial strength rating scale of any other national market. Thus, the national scales of different countries or the national scale of a certain country and the international scale of financial strength ratings are not comparable with each other, and their comparison would lead to erroneous conclusions. To ensure an accurate designation of the national market to which a particular rating applies, a special suffix is ​​added to the definitions of national ratings to designate the relevant sovereign state, for example, AAA(rus).

Short-term financial strength rating The Fitch rating of insurance companies (hereinafter - KS IFS) assesses the financial condition of an insurance company in the near future and the ability of such a company to fulfill priority obligations to policyholders and contractual obligations expected to be repaid within one year. The analysis carried out when assigning KS RFS includes consideration of all the same factors as when assigning financial stability ratings to insurance companies. However, it places greater weight on short-term indicators of liquidity, financial flexibility and regulatory solvency characteristics of the company, while less weight is placed on longer-term factors such as competitiveness and earnings trends.

Quantitative Financial Strength Rating insurance companies differs from traditional RFS in the methodology that agencies use. A traditional RFS is determined by an agency rating committee using a methodology that includes a comprehensive analysis of both quantitative and qualitative factors. Detailed discussions with the management of the companies being rated typically play an important role in such assessments.

Unlike traditional RFSs, quantitative RFSs are determined solely using a statistical model using financial statement data. This model includes a “rating logic” that reflects the quantitative analysis used in assigning traditional RFSs and is subject to review by the rating committee. However, individual ratings are not assigned or reviewed by the rating committee.

The statistical model typically requires at least three years of financial statement data. Although there are limitations associated with using a strictly quantitative rating approach (for example, factors such as the quality of management and relationships with affiliates/parents are not considered), quantitative IFRS provide a reasonable assessment of a company's independent financial strength and operating performance.

The letter “q” is added to definitions of quantitative RFUs. Ratings are reviewed at least once a year. These ratings do not have a rating outlook and are not placed on the Rating Watch list, unlike traditional RFSs.

Rating insurance of insurance organizations in Russia began to develop only recently, along with the development of the free market of insurance services. In 2001, the Expert RA rating agency for the first time assigned reliability ratings to several insurance companies. In organizational terms, the rating procedure of the Expert RA agency is similar to the procedures used by foreign rating agencies. However, the modern Russian insurance market is too specific and most classical methods of analysis are not suitable for it. Therefore, the rating scale of international agencies is not yet acceptable for Russian insurers.

The essence of the Expert RA methodology is to assess the current level of solvency of an insurance organization and a comprehensive analysis of the possibilities of covering future obligations, i.e. its financial stability (Table 3.5).

	Name	Description
	High level of solvency with high financial stability	In the medium term, there is a high probability of fulfillment of obligations under insurance contracts even in the face of significant adverse changes in macroeconomic and market indicators
	High level of solvency with acceptable financial stability	In the short term, the company is highly likely to ensure the timely fulfillment of financial obligations, both current and those arising in the course of insurance activities. In the medium term, a high probability of fulfilling obligations under insurance contracts is possible only in conditions of stability of macroeconomic and market indicators
	High level of solvency with low financial stability	In the short term, the company is highly likely to ensure timely fulfillment of financial obligations, both current and arising in the course of insurance activities.

Continuation

Class Name	Description
W Sufficient level of solvency with high financial stability	In the short term, the company is highly likely to ensure timely fulfillment of all current obligations, as well as minor and medium-sized obligations arising in the course of insurance activities. There is a possibility of financial difficulties in the current state of financial flows if obligations arise that require significant payments. However, the company has real opportunities for financial maneuver in order to fulfill emerging obligations. In the medium term, there is a high probability of fulfillment of obligations under insurance contracts even in the face of significant adverse changes in macroeconomic and market indicators
B 2 Sufficient level of solvency with acceptable financial stability	In the short term, the company is highly likely to ensure timely fulfillment of all current obligations, as well as minor and medium-sized obligations arising in the course of insurance activities. There is a possibility of financial difficulties in the current state of financial flows if obligations arise that require significant payments. However, the company has real opportunities for financial maneuver in order to fulfill emerging obligations. In the medium term, a high probability of fulfilling obligations under insurance contracts is possible only in conditions of stability of macroeconomic and market indicators
B 3 Sufficient level of solvency with low financial stability	In the short term, the company is highly likely to ensure timely fulfillment of all current obligations, as well as minor and medium-sized obligations arising in the course of insurance activities. There is a possibility of financial difficulties in the current state of financial flows if obligations arise that require significant payments. However, the company has real opportunities for financial maneuver in order to fulfill emerging obligations. In the medium term, the likelihood of fulfilling obligations under insurance contracts depends both on the stability of macroeconomic and market indicators, and on the performance of the company itself in the coming period

Ending

The need to assign a reliability rating to an insurance company is determined by the needs of policyholders and other counterparties of insurers and the insurers themselves. The rating of insurance organizations indirectly has a positive impact on the development of the insurance market due to open and correct procedures for identifying the reliability of insurance organizations.

These Regulations are based on Articles 25 and 26 of the Law of the Russian Federation of November 27, 1992 N 4015-I “On the organization of insurance business in the Russian Federation” (Gazette of the Congress of People's Deputies of the Russian Federation and the Supreme Council of the Russian Federation, 1993, N 2, Art. 56; Collection of Legislation of the Russian Federation, 1998, No. 1, Article 4; 1999, No. 47, Article 5622; 2002, No. 12, Article 1093; No. 18, Article 1721; 2003, No. 50, Article 4855, Art. 4858; 2004, N 30, Art. 3085; 2005, N 10, Art. 760; N 30, Art. 3101, Art. 3115; 2007, N 22, Art. 2563; N 46, Art. 5552; ​​N 49, Art. 6048; 2009, N 44, Art. 5172; 2010, N 17, Art. 1988; N 31, Art. 4195; N 49, Art. 6409; 2011, N 30, Art. 4584; N 49, Art. 7040; 2012, N 53, article 7592; 2013, N 26, article 3207; N 30, article 4067; N 52, article 6975; 2014, N 23, 26 article 2934; N 30, article 4224; N 45, Art. 6154; 2015, N 10, Art. 1409; N 27, Art. 3946, Art. 4001; N 29, Art. 4357, Art. 4385; N 48, Art. 6715; 2016, N 1, Art. 52; N 22, Art. 3094; N 26, Art. 3863, Art. 3891; N 27, Art. 4225, Art. 4294, Art. 4296; 2017, N 31, Art. 4754, Art. 4830; 2018, N 1, art. 10, Art. 66; N 18, Art. 2557; N 31, art. 4840; N 32, art. 5113, art. 5115; N 49, Art. 7524) (hereinafter referred to as the Law of the Russian Federation “On the organization of insurance business in the Russian Federation”), Article 20 of the Federal Law of November 29, 2007 N 286-FZ “On Mutual Insurance” (Collected Legislation of the Russian Federation, 2007, N 49, Art. 6047; 2012, N 53, article 7619; 2013, N 30, article 4084; 2014, N 45, article 6154; 2015, N 29, article 4362; 2016, N 22, article 3094; N 27, Art. 4225) and in accordance with the decision of the Board of Directors of the Bank of Russia (minutes of the meeting of the Board of Directors of the Bank of Russia dated 2019 N) establishes:

methodology for determining the amount of equity (capital) of the insurer (with the exception of a mutual insurance company);

a list of assets permitted for investment, requirements for such assets, as well as the procedure for investing own funds (capital), including requirements for the structure of assets in which the insurance organization’s own funds (capital) or part thereof are allowed to be placed;

the procedure for calculating the standard ratio of equity (capital) and assumed liabilities (including the procedure for determining the indicators used to calculate such a ratio), as well as its minimum acceptable value;

threshold value of the normative ratio of equity (capital) and assumed liabilities;

a list of assets permitted for investment, requirements for such assets, as well as the procedure for investing funds from insurance reserves, including requirements for the structure of assets in which funds from insurance reserves of insurers or part thereof are allowed to be placed.

Chapter 1. General provisions

1.1. These Regulations regarding the establishment of requirements for investment of own funds (capital) of insurers do not apply to mutual insurance companies.

1.2. This Regulation, in terms of establishing requirements for investing funds from insurance reserves of insurers, does not apply to medical insurance organizations in terms of compulsory medical insurance operations.

1.3. For the purposes of applying these Regulations, the levels (level limits) of long-term creditworthiness ratings (hereinafter referred to as ratings) and the specifics of their application are established by the Board of Directors of the Bank of Russia based on the following list of credit rating agencies: Moody's Investors Service, Fitch Ratings, S&P Global Ratings, ACRA ( JSC), JSC "Expert RA", A. M. Best Co.

1.4. For the purposes of these Regulations, the value of assets means the value determined in accordance with Chapter 2 of these Regulations, unless otherwise established by these Regulations.

1.5. For the purposes of applying these Regulations, the insurer issues an internal document, which must comply with the requirements of these Regulations and contain, among other things, the procedure for determining by the insurance organization the cost of subordinated loans received by it when calculating the standard ratio of its own funds (capital) and assumed liabilities.

1.6. For the purposes of calculating the indicators provided for by these Regulations, only sureties (guarantees) for assets in which the insurer’s funds are invested that meet the following requirements are taken into account:

the surety (guarantee) is irrevocable and the period for the beneficiary to submit claims to the surety (guarantor) for the latter to fulfill its obligations to the beneficiary under the surety (guarantee) exceeds the maturity date of the obligation by at least 60 working days;

the period for the surety (guarantor) to fulfill its obligations to the beneficiary in fulfillment of obligations under the surety (guarantee) does not exceed 30 working days from the date of receipt of the request for payment as a result of the occurrence of a guarantee event;

surety (guarantee) is given for the amount of the obligation in full (including taking into account interest and coupons).

1.7. For the purposes of calculating the indicators provided for in these Regulations, Lloyd's syndicates are accounted for as one legal entity.

1.8. A group of legal entities related to the insurer, defined in accordance with International Financial Reporting Standard (IAS) 24 “Disclosure of Information about Related Parties”, put into effect on the territory of the Russian Federation by Order of the Ministry of Finance of the Russian Federation dated December 28, 2015 No. В217н “On the introduction of International financial reporting standards and Explanations of International Financial Reporting Standards into effect on the territory of the Russian Federation and on the recognition as invalid of certain orders (certain provisions of orders) of the Ministry of Finance of the Russian Federation", registered by the Ministry of Justice of the Russian Federation on February 2, 2016 N 40940, August 1, 2016 N 43044, for the purposes of calculating the indicators provided for by this Regulation, are taken into account as one legal entity.

Chapter 2. Determination of the composition and value of assets

2.1. The composition of the insurer's assets used to calculate the indicators provided for by these Regulations is determined according to accounting data as of the calculation date, taking into account the requirements of paragraph 2.2 of these Regulations. The following assets are excluded from the composition:

2.1.1. assets that can be used exclusively to fulfill the obligations specified in clause 3.1.1 of these Regulations;

2.1.2. assets, the risks of changes in value of which, in accordance with insurance contracts, are fully assigned to the beneficiaries.

2.2. For the purpose of determining the composition of assets used to calculate the indicators provided for in these Regulations, Russian and foreign depositary receipts are defined as securities, the ownership of which is certified by the corresponding depositary receipts.

For the purpose of determining the composition of assets used to calculate the indicators provided for in these Regulations, securities of investment funds, including foreign investment funds, are considered as a set of assets in which the property of the corresponding fund is invested.

If the person obligated for the securities of an investment fund does not provide and (or) does not disclose information about the assets in which the property of the investment fund is invested, then such securities are included in the assets used to calculate the indicators provided for in this Regulation, without taking into account the requirements paragraph two of this paragraph.

2.3. The value of assets that meet at least one of the following criteria is assumed to be 0.

2.3.1. Shares, units of foreign investment funds and goods, with the exception of:

shares and units of foreign investment funds included (or the listing procedure has been started in relation to these securities) in the quotation list of the first (highest) level by at least one organizer of trading on the securities market in the Russian Federation (Russian exchange) or in the list of sheets (lists, markets, segments) of foreign exchanges, established by the Regulation of the Bank of Russia dated February 24, 2016 N 534-P "On the admission of securities to organized trading", registered by the Ministry of Justice of the Russian Federation on April 28, 2016 N 41964, January 24, 2017 N 45369, with inclusion in which securities may be included in the first (highest) quotation list of Russian exchanges;

shares, units of foreign investment funds and goods admitted to organized trading (or included in quotation lists) on exchanges of the Russian Federation and exchanges located in foreign countries that are members of the Eurasian Economic Union (hereinafter referred to as the EAEU), the Organization for Economic Cooperation and Development (hereinafter referred to as - OECD), the European Union, China, India, Brazil, the Republic of South Africa and included in the list of foreign exchanges approved by Bank of Russia Directive No. 3949-U dated January 28, 2016 “On approval of the list of foreign exchanges on which the listing procedure is a mandatory condition for a Russian exchange to make a decision on the admission of securities of foreign issuers to organized trading, as well as a condition for organizations engaged in transactions with funds or other property not to identify the beneficial owners of foreign organizations whose securities have undergone the listing procedure on such exchanges," registered by the Ministry of Justice of the Russian Federation on March 9, 2016 N 41340 (hereinafter referred to as shares, shares of foreign investment funds and goods admitted to organized trading).

2.3.2. Securities of investment funds, in the event that information about the assets in which the property of the investment fund is invested is not provided and (or) not disclosed, except for securities of the investment fund that simultaneously satisfy the following conditions:

securities of an investment fund, in accordance with the personal law of the person obligated on these securities, can be purchased by unqualified (retail) investors (an unlimited number of persons);

the share of securities of one legal entity in such an investment fund does not exceed 10 percent of the value of the investment fund’s assets based on the requirements for the activities of the investment fund, or documents regulating the investment activities of the investment fund (including the investment declaration, prospectus, trust management rules) .

2.3.3. Shares of joint-stock companies in which the insurer's share of participation exceeds ten percent in the total authorized capital of such companies.

2.3.4. Shares of joint stock companies that are the main ones in relation to the insurer.

2.3.5. Share of participation in the authorized capital of legal entities that are not joint-stock companies.

2.3.6. Investment units of interval mutual investment funds, with the exception of funds whose trust management rules provide for the possibility of redemption of investment units within a year and information on the value of assets and the net asset value of such funds is disclosed on the official website of the management company on the Internet information and telecommunications network on a daily basis basis as of the previous business day and is available on the specified website for at least three months from the date of its publication.

2.3.7. Investment units of closed-end mutual investment funds.

2.3.8. Bonds, with the exception of bonds whose issue rating is not lower than the level established by the Board of Directors of the Bank of Russia, and in the absence of one, the issuer of the bonds is assigned a rating not lower than the level established by the Board of Directors of the Bank of Russia, or the guarantor (guarantor) for such bonds is assigned a rating not lower level established by the Board of Directors of the Bank of Russia (hereinafter referred to as rated bonds).

2.3.9. Subordinated instruments (deposits, loans, bond issues), except for subordinated bond issues issued in accordance with the Federal Law "On Banks and Banking Activities" (as amended by Federal Law No. 17-FZ of February 3, 1996) (Vedomosti of the Congress of People's Deputies of the RSFSR and the Supreme Council of the RSFSR, 1990, No. 27, Article 357; Collection of Legislation of the Russian Federation, 1996, No. 6, Article 492; 2016, No. 27, Article 4295), convertible into shares admitted to organized trading on the stock exchanges of the Russian Federation, and the issue rating of which is not lower than the level established by the Board of Directors of the Bank of Russia, and in its absence, the issuer of such subordinated bond loans is assigned a rating not lower than the level established by the Board of Directors of the Bank of Russia, or the guarantor (guarantor) for such subordinated bond loans is assigned a rating not lower level established by the Board of Directors of the Bank of Russia.

2.3.10. Mortgage participation certificates.

2.3.11. Bills of exchange.

2.3.12. Debt to the insurer that is overdue in accordance with the payment period established by the original contract, without taking into account changes in the original payment period for such debt.

2.3.13. Debt to the insurer for the provision of services and supply of goods to support the activities of the insurer, except for the debt specified in paragraphs 2.3.15.9, 2.3.17, 2.3.19 of these Regulations.

2.3.14. Debt to the insurer for subrogation and recourse claims.

2.3.15. Debt to the insurer, with the exception of:

2.3.15.1. debt to the insurer, representing the right to receive funds from the debtor (including those arising as a result of issuing loans, placing deposits or funds in accounts with credit institutions), if the debtor has a rating not lower than the level established by the Board of Directors of the Bank of Russia, or the guarantor ( guarantor) has a rating not lower than the level established by the Board of Directors of the Bank of Russia;

2.3.15.2. debt to the insurer of organizations recognized as infrastructure organizations in accordance with Bank of Russia Directive No. 3341-U dated July 25, 2014 “On recognizing infrastructure organizations of the financial market as systemically important” (hereinafter referred to as infrastructure organizations), in cases where such debt is due to the peculiarity of the operation of infrastructure in as part of the redemption of securities or transactions with them;

2.3.15.3. debts to the insurer of a person who has been assigned the status of a central depository in accordance with the legislation of the Russian Federation, as well as a person performing the functions of a central counterparty;

2.3.15.4. debt to the insurer of a professional participant in the securities market carrying out brokerage activities, if in such capacity there is a non-credit organization that accounts for the insurer’s funds in a separate account in a credit organization that has a rating not lower than the level established by the Board of Directors of the Bank of Russia, the obligated person determined in accordance with clause 8.3 of these Regulations, in this case such a credit institution will be;

2.3.15.5. debt to the insurer under a repurchase agreement if the counterparty under the repurchase agreement has a rating not lower than the level established by the Board of Directors of the Bank of Russia, or the guarantor (guarantor) has a rating not lower than the level established by the Board of Directors of the Bank of Russia, or the subject of the repurchase agreement is shares admitted to organized trades, or rated bonds;

2.3.15.6. debts to the insurer of insurance agents and insurance (reinsurance) brokers for the transfer of premiums to the insurer under contracts concluded by the insurance agent (insurance (reinsurance) broker) on behalf of the insurer, if under the terms of the insurer’s agreement with such an agent (broker) the debt must be repaid within the deadline the period determined according to Table 10 of Appendix 1 to these Regulations from the moment of its occurrence;

2.3.15.7 debts to the insurer of policyholders, co-insureds and reinsurers for the transfer of insurance and reinsurance premiums (contributions) under insurance, co-insurance and reinsurance contracts, in the amount of the formed reserve of unearned premium or mathematical reserve for each contract;

2.3.15.8. debt to the insurer of the insurer within the framework of the agreement on direct compensation for losses provided for in Article 26.1 of the Federal Law of April 25, 2002 N 40-FZ “On compulsory insurance of civil liability of vehicle owners” (Collected Legislation of the Russian Federation, 2002, N 18, Art. 1720 ; 2003, N 26, Art. 2566; 2005, N 30, Art. 3114; 2007, N 1, Art. 29; N 49, Art. 6067; 2008, N 30, Art. 3616; 2009, N 52, Art. 6438; 2010, N 6, Art. 565; N 17, Art. 1988; 2011, N 1, Art. 4; N 7, Art. 901; N 27, Art. 3881; N 29, Art. 4291; N 49, article 7040; 2012, N 25, article 3268; N 31, article 4319, 4320; 2013, N 30, article 4084; 2014, N 30, article 4224; N 45, article 6154; 2015 , N 48, Art. 6715; 2016, N 22, Art. 3094; N 26, Art. 3883; 2017, N 14, Art. 2008; N 31, Art. 4746; 2018, N 1, Art. 32; N 32, Art. 5076; N 52, Art. 8102; 2019, N 18, Art. 2112);

2.3.15.9. debts to the insurer of medical organizations that have received a license in the manner prescribed by Russian legislation, and sanatorium-resort institutions contained in the List of sanatorium-resort institutions (state, municipal and private health care systems), to which vouchers for sanatorium-resort treatment are provided if there are medical indications treatment carried out for the purpose of preventing major diseases of citizens entitled to receive state social assistance, approved by order of the Ministry of Labor and Social Protection of the Russian Federation N 301n, the Ministry of Health of the Russian Federation N 449n dated July 10, 2013, resulting from the advance payment by the insurer of services provided for the execution of insurance contracts;

2.3.15.10. debt to the insurer of the policyholder - an individual for the repayment of a loan received when insuring objects of personal insurance, provided for in paragraph 1 of Article 4 of the Law of the Russian Federation "On the organization of insurance business in the Russian Federation", while simultaneously fulfilling the following requirements:

the loan is issued within the limits of the insurance reserve formed under an insurance contract formed in accordance with the Regulation of the Bank of Russia dated November 16, 2016 N 557-P "On the rules for the formation of insurance reserves for life insurance", registered by the Ministry of Justice of the Russian Federation on December 29, 2016 N 45055 (hereinafter referred to as Bank of Russia Regulation N 557-P);

the insurance contract is concluded for a period of at least five years;

the insurance contract contains a condition on reducing the insurance payment by the amount of the loan if, by the time the insurance payment is made, the loan provided has not been repaid in full.

2.3.16. The reinsurer’s share in insurance reserves that simultaneously meets the following conditions:

is not a resident of the Russian Federation,

2.3.17. Advance payments for taxes, budget debts for taxes and fees if the legislation does not provide for the possibility of their return in cash.

2.3.18. Deferred tax assets.

2.3.19. Debt to the insurer of budgets (funds) for settlements under compulsory social insurance if the legislation does not provide for the possibility of their return in cash.

2.3.20. Things, except for real estate specified in paragraph 2.7 of these Regulations, and goods specified in paragraph 2.3.2 of these Regulations.

2.3.21. The right of use under a lease agreement, recognized in accordance with the Regulation of the Bank of Russia dated March 22, 2018 N 635-P “On the procedure for reflecting lease agreements by non-credit financial organizations in the accounting accounts”, registered by the Ministry of Justice of the Russian Federation on April 16, 2018 N 50781, 3 December 2018 N 52844 (hereinafter referred to as Bank of Russia Regulation N 635-P).

2.3.22. Assets classified as intangible assets in accordance with accounting data.

2.3.23. Deferred acquisition costs.

2.3.24. Assets that are subject to seizure, other encumbrance or interim measures preventing the alienation of property, except when such an asset is the subject of a pledge.

2.3.25. Foreign financial instruments not qualified as securities.

2.3.26. Debt to the person's insurer, including on issued securities, if the person meets one of the following criteria:

has an obligation to the owners of securities issued (issued) by such person that has not been fulfilled on time and in full;

the license to carry out banking operations is revoked (cancelled), or the license to carry out activities in the financial market is revoked (cancelled), if this type of activity is the main activity of such a person, reflected in the unified state register of legal entities, or information about the person is excluded from the register of non-credit financial organizations maintained by the Bank of Russia;

a bankruptcy procedure was introduced in accordance with the legislation of the Russian Federation on insolvency (bankruptcy);

has an obligation under the surety agreement (guarantee) for securities that has not been fulfilled on time and in full.

2.4. The cost of bank deposits, the terms of which provide for repayment (return) of the placed deposit (deposit) within a period of no more than 5 days from the date of presentation of the request for the issuance of funds, is determined in the amount of the deposit (deposit) and interest income on this deposit (deposit) ), which will be received upon such repayment (return) of the placed deposit (deposit) in accordance with the agreement.

2.5. The value of the debt to the insurer under a derivative instrument, which is an option agreement, under which the insurer has the right to require the counterparty to buy or sell the underlying asset, is assumed to be zero.

The cost of debt to the insurer under another derivative financial instrument or transaction, the execution date of which is not earlier than 3 business days after the date of conclusion of the transaction, with the exception of real estate transactions (hereinafter referred to as a derivative instrument), is equal to minus the total cost of lots of such a derivative instrument (if the base (basic) ) the asset of a derivative instrument is another derivative instrument, - the cost of lots of such a derivative instrument) (hereinafter - the cost of lots of a derivative instrument).

For the purposes of these Regulations, if the terms of a derivative instrument or the conditions of its underlying (underlying) asset, which is a derivative instrument, do not provide for a lot, then the value of lots is understood as the value of the underlying (underlying) asset of the derivative instrument (the cost of the underlying (underlying) asset of the derivative, being the underlying (underlying) asset).

Derivative instruments are accounted for in the volume of the open position, adjusted based on the clearing results.

The requirements of this paragraph do not apply to debts to the insurer under a derivative instrument, the counterparty to which is a person with a rating not lower than the level established by a decision of the Board of Directors of the Bank of Russia, or the guarantor (guarantor) has a rating not lower than the level established by the Board of Directors of the Bank of Russia, or a person performing the functions of a central counterparty, and whose underlying (underlying) asset is:

shares, shares of foreign investment funds and goods admitted to organized trading;

interest rates;

inflation rate;

Exchange Rates;

an index calculated based on changes in the value (value) of the assets listed above;

the fact of fulfillment and (or) non-fulfillment of obligations by third parties with a rating not lower than the level established by the decision of the Board of Directors of the Bank of Russia.

2.6. The cost of debt to the insurer specified in clauses 2.3.15.6-2.3.15.10 of these Regulations is determined according to the insurer’s accounting data.

2.7. The cost of commissioned premises, buildings, land plots (lease rights for land plots) on which these buildings are located, unified real estate complexes, including buildings, the insurer's ownership of which must be registered in accordance with the legislation of the Russian Federation, is determined on the basis of the appraiser's report .

2.8. The cost of bonds, payments (part of payments) for which are established in the form of a formula with variables and (or) depend on changes in the value of assets (with the exception of shares, shares of foreign investment funds and goods admitted to organized trading, rated bonds, interest rates, level inflation, exchange rates, or indices calculated based on changes in their value (value)) or performance of obligations by third parties (except for third parties with a rating not lower than the level established by the decision of the Board of Directors of the Bank of Russia), with the exception of bonds specified in clause 2.3 .9 of these Regulations is defined as the minimum possible amount that can be paid on such a bond in accordance with its terms of issue.

2.9. The value of reinsurers' shares in insurance reserves for insurance other than life insurance and insurance reserves (liabilities) for life insurance is assessed in accordance with Bank of Russia Regulation No. 558-P dated November 16, 2016 "On the rules for the formation of insurance reserves for insurance other than than life insurance", registered by the Ministry of Justice of the Russian Federation on December 29, 2016 N 45054 (hereinafter referred to as Bank of Russia Regulation N 558-P) and Bank of Russia Regulation N 557-P.

2.10. The cost of other assets is determined at fair value in accordance with International Financial Reporting Standard (IFRS) 13 “Fair Value Measurement”, put into effect on the territory of the Russian Federation by Order of the Ministry of Finance of the Russian Federation dated July 18, 2012 N 106n “On Enactment and Termination validity of documents of International Financial Reporting Standards on the territory of the Russian Federation", registered by the Ministry of Justice of the Russian Federation on August 3, 2012 N 25095 (Rossiyskaya Gazeta dated August 15, 2012), as amended, put into effect on the territory of the Russian Federation by order of the Ministry of Finance of the Russian Federation dated 17 December 2014 N 151n "On the introduction of International Financial Reporting Standards documents into force on the territory of the Russian Federation", registered by the Ministry of Justice of the Russian Federation on January 15, 2015 N 35544 ("Official Internet portal of legal information" (www.pravo.gov.ru) , January 15, 2015) (hereinafter referred to as fair value in accordance with IFRS 13), taking into account the requirements of these Regulations.

The methods used to determine the value of assets in accordance with this paragraph must comply with the methods used to determine the value of assets for accounting purposes if fair value is used for accounting purposes to estimate the value of these assets.2.11. The value of assets, including those determined on the basis of the appraiser’s report (hereinafter referred to as the appraiser’s report), compiled in accordance with the requirements of Federal Law of July 29, 1998 N 135-FZ “On Valuation Activities in the Russian Federation” (Collected Legislation of the Russian Federation, 1998, N 31, Art. 3813; 2002, N 4, Art. 251; N 12, Art. 1093; N 46, Art. 4537; 2003, N 2, Art. 167; N 9, Art. 805; 2004, N 35 , Art. 3607; 2006, N 31, Art. 3456; 2007, N 7, Art. 834; N 29, Art. 3482; N 31, Art. 4016; 2008, N 27, Art. 3126; 2009, N 19 , Art. 2281; N 29, Art. 3582; N 52, Art. 6419, Art. 6450; 2010, N 30, Art. 3998; 2011, N 1, Art. 43; N 27, Art. 3880; N 29 , Art. 4291; N 48, Art. 6728; N 49, Art. 7024, Art. 7061; 2013, N 23, Art. 2871; N 27, Art. 3477; N 30, Art. 4082; 2014, N 11 , Art. 1098; N 23, Art. 2928; N 26, Art. 3377; N 30, Art. 4226; 2015, N 1, Art. 52; N 10, Art. 1418; N 24, Art. 3372; N 29, Art. 4342) (hereinafter referred to as the Federal Law “On Valuation Activities in the Russian Federation”), is determined without taking into account taxes that are paid in accordance with the legislation of the Russian Federation or a foreign state upon the acquisition and sale of these assets.

2.12. If the value of real estate is determined on the basis of an appraiser's report, the date of valuation must be no earlier than one year before the date as of which the value of the assets is determined.

In the case of determining the value of assets, other than real estate, on the basis of an appraiser's report, the date of valuation must be no earlier than 3 months before the date as of which the value of the assets is determined.

The value of the asset is determined on the basis of the appraiser's report available at the time of its determination with the valuation date closest to the date of determining the value of the asset.

2.13. The value of an asset may be determined for the purposes of these Regulations on the basis of an appraiser’s report if such a report is prepared by an appraiser who meets the following requirements:

An agreement for the assessment of real estate was concluded with a legal entity that meets the requirements of Article 15.1 of the Federal Law “On Appraisal Activities in the Russian Federation” and does not have any other contractual relationship with the insurer, except for contracts for the implementation of appraisal activities, has ten years of experience and revenue for the last reporting period. a year of at least 100 million rubles;

a report on the assessment of objects was compiled by an appraiser, in respect of whom, as of the date of drawing up the report, the self-regulatory organization of appraisers had not applied two or more disciplinary measures for two years, provided for by the Federal Law "On Appraisal Activities in the Russian Federation", internal documents self-regulatory organizations of appraisers, and whose experience in appraisal activities is at least three years.

2.14. The insurer calculates the value of assets in accordance with these Regulations and an internal document, which must comply with the requirements of the legislation of the Russian Federation on insurance activities, including these Regulations, and contain methods for determining the value of assets (the amount of liabilities, if the liability arose as a result of the conclusion of an agreement, which is a derivative instrument, or is a subordinated loan), including a description of the data sources for determining this value, the procedure for their selection, the time at which this value is determined, the procedure for converting values ​​expressed in one currency into another currency, the order recognition of asset and liability markets as active, criteria for choosing methods and models for assessing value depending on the types of assets (liabilities), as well as a list of assets (liabilities) to be assessed by the appraiser, and the frequency of such assessment.

Chapter 3. Determination of the composition and amount of obligations

3.1. The composition of the insurer's obligations used to calculate the indicators provided for in these Regulations is determined as of the calculation date based on the terms of the contracts concluded by the insurer and the legislation of the Russian Federation, with the exception of:

3.1.1. obligations of the insurer within the framework of the Federal Law of November 29, 2010 N 326-FZ “On Compulsory Medical Insurance in the Russian Federation” (Collected Legislation of the Russian Federation, 2010, N 49, Art. 6422; 2011, N 49, Art. 7047; 2012, N 49, Art. 6758; 2013, N 48, Art. 6165; 2014, N 30, Art. 4269; N 49, Art. 6927; 2015, N 51, Art. 7245; 2017, N 1, Art. 12, 13; 2018, N 49, Art. 7509; 2019, N 6, Art. 464);

3.1.2. obligations of the insurer to transfer to the beneficiary the amount of change in the value of assets specified in paragraph 2.1.2 of these Regulations, but not more than the reserve of options and guarantees formed in accordance with the requirements of Bank of Russia Regulation No. 557-P, under the relevant contracts.

3.2. For the purpose of determining the composition of liabilities used to calculate the indicators provided for by these Regulations, if, in accordance with Chapter 2 of these Regulations, a security of an investment fund, including a foreign investment fund, is considered as a set of assets in which the property of the corresponding fund is invested, then the composition The insurer's liabilities include the liabilities of the corresponding investment fund according to its reporting data.

3.3. The amount of the insurer's liability under a lease agreement, recognized in accordance with Bank of Russia Regulation N 635-P, is determined in the amount of the excess of the amount of the specified insurer's liability over the value of the insurer's asset in the form of the right of use under the specified lease agreement, recognized in accordance with Bank of Russia Regulation N 635-P. P.

3.4. The amount of insurance reserves of the insurer for life insurance and insurance other than life insurance is assessed in accordance with Bank of Russia Regulation N 557-P and Bank of Russia Regulation N 558-P, minus the amount of the additional part of the unearned premium reserve formed in accordance with the Regulation Bank of Russia N 558-P.

3.5. The amount of deferred tax liability for the purposes of these Regulations is determined by the formula:

IT - the amount of deferred tax liability according to accounting data,

The amount of insurance reserves for insurance other than life insurance, formed in accordance with Bank of Russia Regulation N 558-P, and insurance reserves for life insurance, formed in accordance with Bank of Russia Regulation N 557-P, reduced by the amount of reinsurers’ shares in insurance reserves , calculated in accordance with the requirements of these Regulations;

The amount of estimates of reserves for insurance other than life insurance, taking into account estimates of future revenues from subrogation, recourse claims, income from the sale of useful balances, life insurance reserves, obligations under contracts classified as investment, according to accounting data, reduced by the amount of shares reinsurers in insurance reserves according to accounting data;

The amount of deferred acquisition expenses according to accounting data;

The amount of deferred acquisition income according to accounting data;

n is the tax rate for income tax established by the first paragraph of paragraph 1 of Article 284 of the Tax Code of the Russian Federation.

3.6. The total amount of non-credit liabilities, including those for issued guarantees and sureties, the analytical accounting of which is carried out in off-balance sheet accounts of the second order in accordance with the Regulation of the Bank of Russia dated September 2, 2015 N 486-P “On the Chart of Accounts of Accounting in Non-Credit Financial Institutions and the Procedure its application", registered by the Ministry of Justice of the Russian Federation on October 7, 2015 N 39197, December 28, 2016 N 45012, April 16, 2018 N 50777, May 24, 2019 N 54722), with the exception of the liability for legal claims against the insurer, the decision on which has not yet been accepted by the court, is determined in the amount of the maximum possible liability of the insurer.

3.7. The amount of liabilities arising as a result of the insurer entering into contracts that are derivative instruments is determined for such contracts as fair value in accordance with IFRS 13.

3.8. In other cases, except for those specified in paragraphs 3.2 - 3.7 of these Regulations, the amount of the insurer's liabilities is determined based on accounting data.

Chapter 4. Methodology for determining the amount of equity (capital) of the insurer

4.1. The amount of the insurer’s own funds (capital) is determined by the following formula:

K - the amount of equity (capital);

A - the value of the insurer’s assets, calculated in accordance with the requirements of Chapter 2 of these Regulations;

O - the amount of the insurer's obligations, calculated in accordance with the requirements of Chapter 3 of these Regulations.

Chapter 5. The procedure for calculating the standard ratio of equity (capital) and assumed liabilities

5.1. The standard ratio of the insurer's own funds (capital) and assumed liabilities (hereinafter referred to as the standard ratio) is calculated using the following formula:

K - the amount of equity (capital), determined in accordance with Chapter 4 of these Regulations;

NRMP - the standard size of the solvency margin, determined in accordance with Chapter 7 of these Regulations;

RK - assessment of the impact of risks on equity (capital), determined in accordance with Chapter 8 of these Regulations.

SZ - the amount of subordinated loans received by the insurance organization, determined in accordance with the internal document and the requirement of paragraph 5.2 of these Regulations.

The standard ratio is calculated with an accuracy of no less than two decimal places, using mathematical rounding rules.

5.2. For the purposes of this chapter, the amount of subordinated loans received by an insurance organization is determined by the following formula:

,

SZ - the amount of subordinated loans received by the insurance organization;

K is the number of tranches received by the insurance organization of subordinated loans;

Full cost (amount) of the i-th tranche of the subordinated loan;

The number of full quarters until the repayment date of the i-th tranche of the subordinated loan (0 - during the first quarter from the date of attraction).

5.3. The minimum acceptable value of the normative ratio is one.

5.4. The threshold value of the normative ratio is 1.3.

Chapter 6. Investment of own funds (capital) and insurance reserves

6.1. Insurers invest their own funds (capital) and insurance reserves in the following types of assets:

6.1.1. Uncertificated securities;

6.1.2. Rights of claim against individuals and legal entities;

6.1.3. Items, including cash and certified securities.

6.2. Assets in which the insurer’s own funds (capital) and insurance reserves are invested must meet the following requirements:

6.2.1. Issuers of securities must be created in accordance with the legislation of the Russian Federation or foreign states that are members of the EAEU, OECD, European Union, China, India, Brazil, and the Republic of South Africa;

6.2.2. Items must be located on the territory of the Russian Federation.

6.3. The total value of the assets of the mutual insurance company in which funds from insurance reserves are invested must be equal to the total amount of insurance reserves formed in accordance with Bank of Russia Regulation N 558-P, taking into account the requirements of this paragraph.

The value of an asset of a mutual insurance company is determined as the product of the value of this asset, determined in accordance with the requirements of Chapter 2 of these Regulations, and a coefficient equal to 70%.

6.4. The following requirements are established for assets in which the placement of own funds (capital) and insurance reserves is allowed.

6.4.1. For mutual insurance companies, the share of the total assets of each legal or individual entity, subject of the Russian Federation (administrative-territorial entity of a foreign state), municipal entity, foreign state, which is a person obligated for securities owned by a mutual insurance company, or obligated for securities , which is the underlying asset of derivative instruments owned by a mutual insurance company, or a person, depending on the performance of obligations by which cash flows are determined on securities owned by a mutual insurance company, derivative instruments or other contracts to which the insurer is a party, or who is a person to to whom the insurer has the right of claim, or as a guarantor or guarantor for such persons (hereinafter referred to as the person obligated to the mutual insurance company), the total amount of insurance reserves should not exceed the CT indicator specified in Table 9 of Appendix 1 to these Regulations.

If the person obligated to the mutual insurance company is a reinsurer established in the territory of an OECD member country, if such reinsurer has a credit quality group of 1-6, determined in accordance with paragraph 8.5 of these Regulations, and a reinsurance agreement has been concluded with the specified reinsurer, the total value of assets of such a person should not exceed 50% of the total amount of insurance reserves of the mutual insurance company.

The cost of all real estate objects of the mutual insurance company should not exceed 25% of the total value of the insurance reserves of the mutual insurance company.

For the purposes of this paragraph, the total value of the assets of a person obligated to a mutual insurance company means the total value of the securities of this person, securities, the fulfillment of obligations for which is secured by a surety or guarantee of such a person, the amount of rights of claim against such a person (including the amount of funds in rubles and in foreign currency on bank deposits and on accounts in such, if the relevant person is a credit institution), rights of claim against such person for the return of securities and funds under the second part of the repurchase agreement, the size of the reinsurer’s share), with the exception of:

the share of a person who is a reinsurer in insurance reserves in terms of its share in the reserve for declared losses;

debts to the insurer of a person who is a reinsurer in terms of payment of its share in the loss in accordance with the reinsurance agreement;

shares of a person that is a national reinsurance company established on the basis of the Law of the Russian Federation "On the Organization of Insurance Business in the Russian Federation" (as amended by Federal Law dated July 3, 2016 N 363-FZ "On Amendments to the Law of the Russian Federation "On the Organization of Insurance Business in the Russian Federation" (Collected Legislation of the Russian Federation, 2016, No. 27, Art. 4296) (hereinafter referred to as the national reinsurance company);

assets for which the Russian Federation is obligated to the mutual insurance company;

debt of a person that is an infrastructure organization, in cases where such debt to the insurer is due to the peculiarity of the operation of the infrastructure as part of the redemption of securities or transactions with them.

The total value of the assets of reinsurers to whom the mutual insurance company has transferred insurance payment obligations for reinsurance must not exceed 60% of the total insurance reserves of the mutual insurance company.

6.4.2. The cost of lots of derivative instruments, the cost of securities (the amount of funds) received by the insurer under the first part of the repurchase agreement, the amount of attracted loans and borrowings, including those made through the issuance of bills, the issue and sale of bonds, in the aggregate should not exceed 40 percent of the value of assets insurer assessed in accordance with the requirements of Chapter 2 of these Regulations.

As of the date of conclusion of transactions with derivative instruments, repurchase agreements, loan agreements, credit agreements, the amount specified in paragraph one of this paragraph should not exceed 30 percent of the value of the insurer’s assets.

For the purposes of this paragraph, repurchase agreements are not taken into account, under which the insurer is the buyer under the first part of the repurchase agreement and which provide for the impossibility of disposing of the acquired securities, with the exception of their return under the second part of such a repurchase agreement, as well as option agreements under which the insurer has the right to demand from the counterparty to the purchase or sale of the underlying (underlying) asset.

Chapter 7. Standard size of the solvency margin

7.1. The standard size of the solvency margin is equal to the sum of the standard size of the solvency margin of an insurance company for life insurance and the standard size of the solvency margin of an insurance company for insurance other than life insurance.

7.2. The standard size of the solvency margin of an insurance company for life insurance is equal to the product of five percent of the amount of insurance reserves for life insurance formed as of the settlement date by the adjustment factor (Kzh).

The adjustment coefficient (Kzh) is defined as the ratio of the amount of insurance reserves for life insurance formed by the insurance organization on the settlement date, minus the shares of reinsurers in such insurance reserves to the total amount of these insurance reserves.

If the correction factor (Kf) is less than 0.85, for calculation purposes it is taken equal to 0.85.

7.3. The standard size of the solvency margin of an insurance organization for insurance other than life insurance is equal to the largest of the following two indicators, multiplied by the adjustment factor (Ci).

7.4. The first indicator is calculated based on available data for the 12 months preceding the calculation date.

The first indicator is equal to 16 percent of the amount of insurance premiums (contributions) accrued under contracts (except for contracts for which obligations are transferred as part of the transferred insurance portfolio) of insurance, co-insurance, under contracts accepted for reinsurance related to insurance other than life insurance ( hereinafter - insurance contracts, co-insurance and contracts accepted for reinsurance) and under contracts, obligations under which were received as part of the accepted insurance portfolio, reduced by the amount of deductions from insurance premiums (contributions) under insurance contracts, co-insurance, carried out by the insurance organization in accordance with the law of the Russian Federation and the rules and standards of professional associations, unions, associations of insurance organizations, whose powers include the accumulation of deductions from insurance premiums made by insurance organizations in accordance with the legislation of the Russian Federation.

7.5. The second indicator is calculated using data for the 36 months preceding the calculation date.

The second indicator is equal to 23 percent of one third of the amount:

insurance payments actually made under insurance contracts, co-insurance and under contracts accepted for reinsurance, minus amounts accrued under subrogation and recourse claims;

changes in the reserve of declared but unresolved losses, the reserve of occurred but undeclared losses under insurance contracts, co-insurance and contracts accepted for reinsurance.

An insurance organization that has received, in the prescribed manner, its first license to carry out insurance, except for a license to carry out voluntary life insurance, or a reinsurance company that has had less than three years (36 months) pass from the date of receipt of its reinsurance license to the settlement date, shall not calculates the second indicator.

7.6. The adjustment factor (Ci) is calculated based on available data for the 12 months preceding the calculation date.

The correction factor (Ci) is defined as the ratio of the sum:

insurance payments actually made under insurance contracts, co-insurance and under contracts accepted for reinsurance, minus the accrued share of reinsurers in insurance payments;

changes in the reserve of declared but not settled losses and the reserve of occurred but not declared losses under insurance contracts, co-insurance and contracts accepted for reinsurance, minus changes in the share of reinsurers in these reserves;

insurance payments actually made under insurance contracts, co-insurance and under contracts accepted for reinsurance;

changes in the reserve of declared but unresolved losses and the reserve of occurred but undeclared losses under insurance contracts, co-insurance and contracts accepted for reinsurance.

If there are no insurance payments in the calculation period under insurance contracts, co-insurance contracts and contracts accepted for reinsurance, the adjustment factor (Ci) is taken equal to 1.

If the correction factor (Ci) is less than 0.5, then for calculation purposes it is taken equal to 0.5, if more than 1 - equal to 1.

7.7. For insurance organizations providing insurance, co-insurance of tour operator liability in accordance with Federal Law of November 24, 1996 N 132-FZ “On the Fundamentals of Tourism Activities in the Russian Federation” (Collected Legislation of the Russian Federation, 1996, N 49, Art. 5491; 2003, N 2, Art. 167; 2004, N 35, Art. 3607; 2007, N 7, Art. 833; 2009, N 1, Art. 17, N 26, Art. 3121; N 52, Art. 6441; 2010, N 32, Art. 4298; 2011, N 27, Art. 3880; 2012, N 19, Art. 2281), as well as those accepting for reinsurance obligations for insurance payments under the insurance specified in this paragraph (hereinafter referred to as tour operator liability insurance) standard amount The solvency margin increases by the amount calculated in relation to each tour operator in excess of the total amount of liability net reinsurance under all tour operator liability insurance contracts valid on the calculated date (in relation to each individual tour operator) over an indicator equal to 10 percent of the amount of the insurance organization's own funds (capital).

7.8. The total volume of liability, net reinsurance, is understood as the amount of money payable by the insurance organization to the insured persons or beneficiaries under insurance, co-insurance, reinsurance contracts, subject to the simultaneous occurrence of insured events in the amount of the insured amount under all insurance, co-insurance, reinsurance contracts valid on the settlement date minus the shares of reinsurers in such payments provided for in reinsurance agreements concluded by the insurance organization, including retrocession agreements.

Chapter 8. The final value of assessing the impact of risks on equity (capital)

8.1. The RK indicator is determined by the formula:

,

i, j - summation indices, for the purposes of this chapter, indicators are determined for index i (for index j, indicators are determined similarly), for the purposes of clause 8.1 of these Regulations, indices i, j take the value 1 or 2;

Assessment of i-th risk;

The value of the correlation coefficient between risks i and j in accordance with Table 12 of Appendix 1 to this Regulation.

8.2. Risk assessment 1 is determined by the following formula:

,

Risk assessment 1 by risk type i:

concentration risk;

risk of changes in credit spread;

risk of changes in interest rates;

risk of changes in share prices;

risk of changes in exchange rates;

risk of changes in real estate prices;

risk of changes in prices for other assets.

The value of the correlation coefficient between risk types i and j in accordance with Table 13 of Appendix 1 to this Regulation.

8.3. The assessment of concentration risk is determined by the formula:

where: is defined for:

(1) each i-th legal entity or individual, subject of the Russian Federation (administrative-territorial entity of a foreign state), municipal entity, foreign state, who is a person obligated on securities owned by the insurer, or obligated on securities that are the underlying assets of derivatives instruments owned by the insurer, or by a person who, depending on the performance of obligations, determines the cash flows on securities owned by the insurer, derivative instruments or other contracts to which the insurer is a party, or who is a person against whom the insurer has a claim, or a guarantor or a guarantor for such persons (hereinafter referred to as the obligated person),

(2) all real estate

according to the formula:

- (1) the total value of the securities of the i-th obligated person, securities, the fulfillment of obligations for which is secured by a surety or guarantee of such an obligated person, the amount of rights of claim against such an obligated person (including the amount of funds in rubles and in foreign currency for bank deposits and on accounts with such an obligated entity, if the relevant obligated entity is a credit institution), rights of claim against such obligated entity for the return of securities and funds under the second part of the repurchase agreement, the amount of the reinsurer’s share), with the exception of:

the share of the i-th obligated person, who is a reinsurer, in insurance reserves in terms of its share in the reserve of declared but unresolved losses;

debt to the insurer of the i-th obligated person, who is the reinsurer, in terms of payment of its share of the loss in accordance with the reinsurance agreement;

shares of the i-th obligated person, which is a national reinsurance company

assets for which the obligated party is the Russian Federation;

the debt of the i-th obligated person, which is an infrastructure organization, in cases where such debt to the insurer is due to the peculiarities of the operation of the infrastructure as part of the redemption of securities or transactions with them;

(2) the total value of all properties;

The value of the insurer's assets;

- (1) if the i-th obligated person is a reinsurer established in accordance with the legislation of an OECD member country, if such reinsurer has a credit quality group of 1-6, determined in accordance with paragraph 8.5 of these Regulations, and a reinsurance agreement has been concluded with the specified reinsurer - 50%,

for other obligated persons - in accordance with Table 9 of Appendix 1 to these Regulations;

(2) for real estate - 25%;

Determined by the formula:

,

The number of reinsurance organizations to which insurance payment obligations were transferred for reinsurance;

A coefficient equal to 20% for insurers licensed to carry out life insurance, and 60% for other insurers.

8.4. For each bond, bank deposit (deposit), loan, in accordance with the terms of fulfillment of obligations on the asset, the insurer must build a cash flow forecast, including the dates of cash flows and their amounts.

The cash flow is built up to the nearest date, as of which, in accordance with the terms of performance by the obligor under the instrument, the specified obligations must be fulfilled in full (hereinafter referred to as the asset maturity date).

If future flows for an asset are unknown, all future flows are equal to the last known cash flow at the settlement date.

8.5. The credit quality group is determined for each asset owed to the entity, depending on the rating assigned by the credit rating agency (if they have ratings from several credit rating agencies, including foreign credit rating agencies, a rating is selected on the basis of which the group will be assigned to them credit quality with the lowest number) in accordance with Table 1 of Appendix 1 to these Regulations.

In the absence of a credit rating assigned by a credit rating agency, for foreign rated objects, the credit quality group is determined on the basis of the rating assigned by a foreign credit rating agency.

Individuals belong to the 15th group of credit quality.

8.6. The assessment of the risk of changes in the credit spread is determined in relation to bonds, bank deposits (deposits), loans, derivatives using the formula:

M - the number of bonds (bank deposits, loans), with the exception of government bonds of the Russian Federation, government bonds of OECD member countries, with a rating of at least “A” on the international rating scales S&P Global Ratings and Fitch Ratings, and “A2” according to the international rating scale of Moody's Investors Service (hereinafter, for the purposes of this paragraph, the instrument);

The cost of the instrument, including accumulated coupon income, assessed in accordance with the requirements of Chapter 2 of these Regulations;

j - serial number of the next cash flow from the settlement date;

N is the number of cash flows;

Cash flow size j;

Cash flow date j;

Settlement date;

The coefficient of change in the credit spread depending on the group of credit quality of the instrument m, determined according to Table 2 of Appendix 1 to these Regulations;

Effective profitability, which is determined by the formula:

The difference between the value of derivative instruments and the value of derivative instruments determined in the event of a change in the value (value) of the underlying asset (assets) based on changes in the value of the credit spread in accordance with Table 2 of Appendix 1 to these Regulations corresponding to the group of credit quality of this (these) underlying asset(s). For derivative instruments that are an obligation for the insurer, the specified difference is taken with a minus sign.

8.7. The assessment of the risk of changes in interest rates is determined in relation to bonds, bank deposits (deposits), loans, derivative instruments, the amount of insurance reserves formed in accordance with the requirements of Bank of Russia Regulation No. 557-P, according to the following formula:

M is the number of bonds (bank deposits, loans) (hereinafter, for the purposes of this paragraph, the instrument).

The cost of the instrument m, including the accumulated coupon income;

The period until the end of the insurer's liability under the insurance contract, the period until the instrument is redeemed m, in years;

K, - the maximum (minimum) period specified in tables 3-4 of Appendix 1 to these Regulations, not exceeding (exceeding) D, in years;

Relative increase (up) or decrease (down) of interest rates for periods of 0.25 years and 30 years for the currency of the instrument’s par value, the currency of the insured amount in the insurance contract, the par value currency of the underlying asset of the derivative instrument (in the event that the underlying asset of the derivative instrument has no par value - currency of payments on a derivative instrument) (hereinafter referred to as the currency of the interest rate);

Relative increase (up) or decrease (down) of interest rates specified in tables 3-4 of Appendix 1 to these Regulations for the term K and the currency of the interest rate;

- the difference between the values ​​of insurance reserves calculated in accordance with the Regulations on the formation of insurance reserves in force in the insurance organization on the date of calculation in accordance with the requirements of Bank of Russia Regulation No. 557-P, and the values ​​of insurance reserves calculated based on the rate of return in accordance with the requirements of the Regulations Bank of Russia No. 557-P, increased or decreased by times;

Interest rate determined by the following formula:

The maturity of the instrument m in years;

The minimum (maximum) period for which the level of interest rates of zero-coupon yield of suitable (relevant) government securities is determined in years;

K, - the maximum (minimum) period for which the value of the zero-coupon yield curve is known, not exceeding (exceeding) D, in years;

The level of interest rates for term K, determined on the settlement date. If the currency of the interest rate is the ruble of the Russian Federation, then interest rates according to https://www.cbr.ru/hd_base/zcyc_params/ are used, otherwise - interest rates according to https://www.treasury.gov/resource-center/ data-chart-center/interest-rates/Pages/TextView.aspx?data=yield.

- the difference between the cost of derivative instruments and the cost of derivative instruments, determined in the event of a change in the value (value) of the underlying asset/assets based on an increase (up)/decrease (down) in the interest rate level by . For derivative instruments that are an obligation for the insurer, the specified difference is taken with a minus sign.

8.8. The assessment of the risk of changes in the value of shares is determined in relation to shares, derivatives, and options of the issuer using the formula:

M - number of shares;

Cost of the m-th share;

The coefficient of change in the value of the m-th share, determined according to Table 5 of Appendix 1 to these Regulations, depending on the country in accordance with the legislation of which the issuer of shares was created. If the issuer of shares is established in accordance with the laws of the United States or in accordance with the laws of a country that is a member of the European Union, a coefficient of 2 is used, otherwise a coefficient of 1 is used.

The difference in the cost of derivative instruments, issuer options, other contracts, payment under which is determined depending on the value of the shares, and the cost of such contracts, determined in the event of a change in the value (value) of the underlying asset/assets based on changes in the value of the shares in accordance with the table 5 of Appendix 1 to this Regulation. If the issuer of shares was created in accordance with the laws of the United States or in accordance with the laws of a country that is a member of the European Union, a coefficient of 2 is used, otherwise a coefficient of 1 is used. For derivative instruments that are an obligation for the insurer, the specified difference is taken with a minus sign.

8.9. The risk assessment of changes in real estate prices is determined by the formula:

- the difference between the value of derivative instruments and the value of derivative instruments, determined in the event of a change in the value (value) of the underlying asset/assets based on changes in the value of real estate in accordance with Table 7 of Appendix 1 to these Regulations. For derivative instruments that are an obligation for the insurer, the specified difference is taken with a minus sign;

Coefficient 1 of changes in residential real estate prices according to Table 7 of Appendix 1 to these Regulations;

Coefficient 2 of changes in prices of non-residential real estate according to Table 7 of Appendix 1 to these Regulations;

The total cost of residential real estate, including the cost of land plots (lease rights to land plots) on which the said property is located;

The total cost of non-residential real estate, including the cost of land plots (lease rights to land plots) on which the specified property is located.

8.10. The assessment of the risk of changes in the value of other assets is determined by the formula:

M - the number of assets to which types of risk 1, established by paragraphs 8.6 - 8.9 of these Regulations, are not applicable, with the exception of the share of reinsurers in insurance reserves, debt to the insurer and loans;

с - coefficient of change in the value of other assets, according to Table 8 of Appendix 1 to these Regulations;

The value of the m-th asset;

The difference in the value of derivative instruments and other contracts, payments under which are determined depending on changes in the value of such assets, and the value of such contracts, determined in the event of a change in the value (value) of the underlying asset(s) based on changes in the value of such assets in accordance with the table 8 of Appendix 1 to this Regulation. For derivative instruments that are an obligation for the insurer, the specified difference is taken with a minus sign.

8.11. The risk assessment of exchange rate changes is determined by the formula:

Assessment of the risk of changes in the exchange rate due to an increase (decrease) in the exchange rate:

The total value of the insurer's assets denominated in foreign currency or, in accordance with the contract, dependent on the foreign exchange rate, excluding derivative instruments;

The total value of the insurer's assets denominated in foreign currency or, in accordance with the contract, dependent on the foreign currency exchange rate, calculated in accordance with the requirements of Chapter 2 of these Regulations, excluding derivative instruments, in the event of an increase (up) or decrease (down) in the foreign currency exchange rate by the indicator specified in Table 6 of Appendix 1 to these Regulations;

The total value of the insurer's obligations denominated in foreign currency or, in accordance with the contract, dependent on the foreign exchange rate, determined in accordance with Chapter 3 of these Regulations, excluding derivative instruments;

The total value of the insurer's obligations denominated in foreign currency or, in accordance with the contract, dependent on the foreign exchange rate, determined in accordance with Chapter 3 of these Regulations, excluding derivative instruments, in the event of an increase (up) or decrease (down) in the foreign currency exchange rate by an indicator specified in Table 6 of Appendix 1 to these Regulations;

- the difference between the cost of derivative instruments and the cost of derivative instruments, determined in the event of a change in the value (value) of the underlying asset/assets based on the increase (up)/decrease (down) of the foreign currency exchange rate in accordance with Table 6 of Appendix 1 to these Regulations. For derivative instruments that are an obligation for the insurer, the specified difference is taken with a minus sign.

8.12. Risk rating 2 is not determined for the following assets:

assets for which the obligated party is the Russian Federation;

assets for which the obligated party is an OECD member country, with a rating of at least “A” on the international rating scales of S&P Global Ratings and Fitch Ratings, and “A2” on the international rating scale of Moody’s Investors Service;

debts of medical organizations that have received a license in the manner prescribed by Russian legislation, and sanatorium-resort institutions included in the List of sanatorium-resort institutions (state, municipal and private health care systems), to which vouchers for sanatorium-resort treatment are provided, if there are medical indications, carried out for the purpose of preventing major diseases of citizens entitled to receive state social assistance, approved by order of the Ministry of Labor and Social Protection of the Russian Federation No. 301n, the Ministry of Health of the Russian Federation No. 449n dated July 10, 2013, resulting from the advance payment by the insurer of services aimed at fulfilling insurance contracts;

real estate;

advance payments for taxes, budget debts for taxes and fees;

debt of insurers arising as a result of calculations for direct compensation of losses in accordance with the legislation of the Russian Federation on compulsory insurance of civil liability of vehicle owners;

debt of infrastructure organizations, in cases where such debt is due to the peculiarities of the operation of the infrastructure as part of the redemption of securities or transactions with them;

cash (cash on hand).

8.13. For the purposes of risk assessment 2, all obligated persons for whom risk assessment 2 is determined are divided into three categories:

1st category of counterparties: obligated persons, if they or their securities belong to credit quality groups 1-17 or they are obligated for securities that are the underlying asset of derivative instruments owned by the insurer, or a person, depending on the performance of obligations of which cash flows are determined for securities owned by the insurer, derivative instruments or other contracts to which the insurer is a party, or the concentration on the obligated person exceeds 0.5 percent of the total value of the insurer's assets;

8.14. The probability of default of an asset in respect of which risk assessment 2 is determined is determined as the product of the probability of default, determined according to Table 1 of Appendix 1 to these Regulations based on the credit quality group of the asset, and the period to maturity (closing), divided by 365.

For the purposes of this paragraph, the repayment (closing) period is:

for funds (including correspondent accounts, demand accounts) and deposits specified in clause 2.4 of these Regulations - 5 days;

for debt that, in accordance with the agreement, must be repaid within the next 365 days following the settlement date - the number of days before the repayment date;

otherwise - 365 days.

The probability of default of the obligated person is determined according to Table 1 of Appendix 1 to these Regulations, based on the credit quality group of the obligated person.

8.15. Risk score 2 is determined by the formula:

Risk assessment 2 for counterparty category i;

The value of the risk correlation coefficient 2 between categories of counterparties i and j in accordance with Table 14 of Appendix 1 to these Regulations.

8.16. Risk assessment 2 for category 1 counterparties is determined as the maximum value of the expected loss, where the coefficient Q is determined according to table 11 of Appendix 1 to these Regulations, and the value T is determined as the minimum integer so that the value is less than 0.5% of the value of the insurer’s assets assessed in accordance with the requirements of Chapter 2 of these Regulations, but not less than 30,000 and not more than 150,000.

The value is calculated using the formula .

8.16.1. The value of the expected loss in iteration s is determined by the formula:

M is the number of assets for which the obligees belong to the 1st category of counterparties;

The value of the m-th asset;

The value of the mth asset based on the default assumptions made in iteration s.

For the purpose of determining the assumption of defaults, for each obligated person who belongs to the 1st category of counterparties, a uniformly distributed random variable is calculated in the range from 0 to 1 inclusive with an accuracy of at least five decimal places.

The asset is expected to default if

the fulfillment of obligations on the asset is not secured by a surety (guarantee) and the value of the random variable calculated for the obligor on this asset is less than the probability of default on the asset;

fulfillment of obligations on an asset is secured by a guarantee (guarantee), the value of a random variable calculated for the obligor for this asset is less than the probability of default for the asset, and the value of the random variable calculated for the guarantor (guarantor) for the asset is less than the probability of default for the guarantor (guarantor) for asset.

Default of an obligated person, who is a person, depending on the fulfillment of obligations, determines cash flows on securities owned by the insurer, derivative instruments or other contracts to which the insurer is a party, is assumed if the value of the random variable calculated for such person is less than the probability of default of such person faces.

Depending on the type of the mth asset, its value based on the assumptions about defaults made in iteration s is determined as follows:

0 for shares and assets for which the obligees are not assigned a rating, if such assets are expected to default in iteration s;

35% of the nominal value of bonds, the fulfillment of obligations for which is not secured by collateral, the nominal value of deposits, but not more than their value as of the calculation date, the value of other assets, the fulfillment of obligations for which is not secured by collateral, if such assets are expected to default in iteration s;

the amount of cash flows on an asset, if such an asset is not expected to default in iteration s, but for persons, depending on the fulfillment of obligations that determine the cash flows on the asset, default is assumed in iteration s;

the value of securities and other claims that are collateral for the asset, if such an asset is expected to default in iteration s, and the obligated persons for such securities and other claims that are the subject of collateral are not expected to default in iteration s;

the value of real estate that is collateral for the asset, determined in accordance with the requirements of Chapter 2 of these Regulations and multiplied by the coefficient of change in prices of the real estate object, determined in accordance with paragraph 8.9 of these Regulations, if the asset is expected to default in iteration s;

50% of the value of the collateral for the asset, with the exception of the types of collateral listed above, determined in accordance with the requirements of Chapter 2 of these Regulations, if the asset is expected to default in iteration s;

0 in other cases, if the asset or the obligor of the asset is expected to default in iteration s;

the value of the m-th asset in other cases.

8.17. Risk assessment 2 for category 2 counterparties is determined by the formula:

g - the number of groups into which obligated persons classified as category 2 counterparties are divided, based on the concentration per obligated person, determined in accordance with the requirements of clause 8.3 of these Regulations;

Maximum concentration for group i per obligated person;

The share of the value of shares in the total value of assets for which the obligated persons are assigned to the i-th group;

Determined by the formula:

,

Q - coefficient Q is determined from table 11 of appendix 1 to this Regulation;

Number of obligated persons in the i-th group;

PD is the probability of default for the 18th group of credit quality in accordance with Table 1 of Appendix 1 to these Regulations.

An obligated person assigned to the 2nd category of counterparties, with a concentration on the obligated person of more or less value, falls into group i+1, where it is determined by the formula:

,

The maximum (minimum) value of concentration per obligated person for all obligated persons classified as category 2 counterparties;

n=10, if the number of obligated persons classified in category 2 is less than 50,000, n=100, if more than 50,000, n=1, if less than 100;

i takes values ​​from 0 to n-1.

If a group contains at least 100 people, it is considered complete. If a group is not full, it is merged with the next one. If the last group is not filled, then it is merged with the previous one.

8.18. Risk assessment 2 for obligated persons classified as category 3 is carried out according to the rules of paragraph 8.17 of these Regulations, taking into account the following:

index ;

Probability of default for the 15th group of credit quality in accordance with Table 1 of Appendix 1 to these Regulations.

9. Final and transitional provisions

9.1. This Regulation is subject to official publication in the "Bulletin of the Bank of Russia" in accordance with the decision of the Board of Directors of the Bank of Russia (minutes of the meeting of the Board of Directors of the Bank of Russia dated ______ No. ____) and comes into force on July 1, 2021, with the exception of certain provisions for which this paragraph other dates for their entry into force have been established.

9.2. Paragraph two of clause 2.3.1 of these Regulations is valid until June 30, 2023 inclusive.

9.3. From the date of entry into force of this Regulation, the following shall be declared invalid:

Directive of the Bank of Russia dated September 3, 2018 No. 4896-U “On the methodology for determining the amount of equity (capital) of an insurer (except for a mutual insurance company)”, registered by the Ministry of Justice of the Russian Federation on September 24, 2018 No. 52233;

Directive of the Bank of Russia dated July 28, 2015 No. 3743-U “On the procedure for calculating by an insurance organization the standard ratio of its own funds (capital) and accepted liabilities”, registered by the Ministry of Justice of the Russian Federation on September 9, 2015 No. 38865, March 2, 2017 No. 45826, 1 August 2017 No. 47610, February 1, 2018 No. 49856;

Directive of the Bank of Russia dated February 22, 2017 No. 4297-U “On the procedure for investing funds from insurance reserves and the list of assets permitted for investment”, registered by the Ministry of Justice of the Russian Federation on May 11, 2017 No. 46680, July 11, 2017 No. 47364, January 31, 2018 No. 49847;

Directive of the Bank of Russia dated February 22, 2017 No. 4298-U “On the procedure for investing the insurer’s own funds (capital) and the list of assets permitted for investment”, registered by the Ministry of Justice of the Russian Federation on May 10, 2017 No. 4664.

9.4. For the period until July 1, 2022, for the purposes of calculating the regulatory ratio and assumed obligations, the RK indicator is equal to the concentration risk assessment determined in accordance with the requirements of paragraph 8.3 of these Regulations.

Application

Explanatory note
to the draft Regulation of the Bank of Russia "On ensuring the financial stability and solvency of insurers" (hereinafter referred to as the draft regulation)

The Bank of Russia has developed a draft regulation “On ensuring the financial stability and solvency of insurers.”

The draft regulation changes the approaches to determining the financial stability and solvency of insurers, the methodology for determining equity (capital) and takes into account the risk of changes in the value of assets when determining capital adequacy.

The draft regulations provide for the following innovations.

1. The insurer's own funds (capital) are defined as the difference between all assets and liabilities of the insurer. Unlike the current regulation, which contains requirements for assets only in terms of the amount of insurance reserves and the insurer's own funds (capital), the draft regulation takes into account all the assets of the insurer when determining the amount of the insurer's own funds (capital). The draft regulation establishes that most assets must be measured at fair value to calculate equity. The valuation of individual assets, the value of which cannot be reliably determined, is assumed to be zero.

2. For the purposes of calculating the standard ratio of own funds (capital) and assumed liabilities (hereinafter referred to as the standard ratio), the amount of own funds (capital) and attracted subordinated loans must be no less than the total value of the standard size of the solvency margin and assessment of the impact of risks on solvency.

The size of the standard solvency margin is calculated similarly to the current procedure (Instruction of the Bank of Russia dated July 28, 2015 N 3743-U “On the procedure for calculating by an insurance organization the standard ratio of its own funds (capital) and assumed liabilities”).

When assessing the impact of risks on the solvency of the insurer, the impact of a combination of the following risks is assessed: concentration risk, risk of changes in credit spreads, risk of changes in interest rates, risk of changes in stock prices, risk of changes in exchange rates, risk of changes in real estate prices, credit risk, risk of changes in prices for other assets. The risk impact assessment is determined over a one-year horizon. At the same time, the size of the impact of risks on the solvency of the insurer directly depends on all the assets of the insurer, including the credit quality of individual assets and the degree of diversification of the credit risk of the portfolio as a whole, the ratio of the duration of assets and liabilities, and the size of the open currency position.

3. The list of permitted assets for investment of insurance reserves and own funds (capital), as well as the procedure for their investment, are combined, and the draft regulations for investment purposes establish a single list of assets and requirements for them with minimal qualitative restrictions. The requirements for assets in the draft regulations are, inter alia, indirectly implemented in terms of the procedure for determining own funds (capital). This approach will allow, without reducing the level of requirements for the financial stability of the insurer, to minimize the number of restrictions.

From July 1, 2021, requirements for calculating the amount of equity capital will come into effect, and only concentration risk will be taken into account in calculating the regulatory ratio. Starting from July 1, 2022, the impact of risks is assessed as the impact of the totality of risks listed above. From July 1, 2025, all norms of the draft regulation will be in force.

The draft regulations have been developed to replace the following existing regulations of the Bank of Russia:

Directive of the Bank of Russia dated September 3, 2018 N 4896-U “On the methodology for determining the amount of equity (capital) of an insurer (with the exception of a mutual insurance company;

Directive of the Bank of Russia dated July 28, 2015 N 3743-U “On the procedure for calculation by an insurance organization of the standard ratio of its own funds (capital) and assumed liabilities”;

Directive of the Bank of Russia dated February 22, 2017 N 4297-U “On the procedure for investing funds from insurance reserves and the list of assets permitted for investment”;

Directive of the Bank of Russia dated February 22, 2017 N 4298-U “On the procedure for investing the insurer’s own funds (capital) and the list of assets permitted for investment.”

Proposals and comments to the draft regulations within the framework of public discussion in accordance with Bank of Russia Regulation No. 602-P dated September 22, 2017 “On the rules for preparing regulatory acts of the Bank of Russia” are accepted within 24 days from the date of its official publication on the official website of the Bank of Russia www. cbr.ru on the Internet information and telecommunications network from 08/28/2019 to 09/20/2019.

The responsible structural unit is the Insurance Market Department of the Bank of Russia.

Document overview

The Bank of Russia plans to change approaches to determining the financial stability and solvency of insurers.

When determining the amount of equity (capital) of the insurer, all assets of the insurer will be taken into account. Most assets will be measured at fair value for purposes of calculating equity.

When determining capital adequacy, the risk of changes in the value of assets will be taken into account.

Introduction

The purpose of this work is to consider the concept of financial stability of an insurance company: revealing the essence of the phenomenon, influencing factors and the possibilities of managing them, as well as methods for monitoring the solvency and financial stability of the insurer. The insurance market is an important area of ​​the country's financial and credit system. The specifics of the insurance business and its socio-economic significance require increased attention to the organization of the work of insurers, their stability and solvency, and the ability to meet their obligations. This problem is especially acute in times of crisis.

The first chapter examines factors affecting the financial stability of an insurance company, as well as guarantees of its solvency, taking into account the requirements of Russian legislation.

The second chapter provides an example of an analysis of the financial stability of an insurance company, explains the significance of the indicators and their interpretation, and draws general conclusions about the state of RESO-Garantia Insurance Company.

The third chapter examines the possibilities of influencing the financial performance of an insurance company, and proposes measures to improve and improve their activities.

The appendices provide a methodology for calculating indicators of the financial stability of an insurance organization based on reporting: balance sheet (form 1) and profit and loss statement (form 2).

When writing the work, textbooks and legal documents of the Russian Federation were used as sources of theoretical knowledge. To determine the methodology for assessing the financial stability of insurers, scientific research publications and Internet resources were used.

Concept and guarantees of financial stability and solvency of an insurance company

The insurance business differs in many ways from other types of business activities. First of all, this is a high responsibility that lies with the insurer: because of one mistake by a manager, because of one incorrectly calculated step, not only will the activities of the insurer be jeopardized, but also damage will be caused to a large circle of policyholders. Meanwhile, insurance activities are aimed at protecting the property interests of individuals and legal entities upon the occurrence of certain events at the expense of funds generated from insurance premiums paid by policyholders. Thus, the financial collapse of the insurer affects the interests of a significant number of persons.

In order to prevent insolvency and bankruptcy of insurance companies, it is necessary to identify at an early stage insurers whose financial condition causes concern.

In insurance activities, the financial mechanism is a mechanism for solving complex, usually unstructured problems with a high degree of uncertainty.

The financial stability of the insurer is the preservation of the optimal qualitative and quantitative state of assets and liabilities, allowing the insurance organization to ensure the uninterrupted implementation of its activities and its development. This stability is manifested in the constant balance or excess of the insurer's income over its expenses.

In practice, it is customary to distinguish between financial stability and liquidity. Financial stability is defined as the potential (balance sheet) ability of a company to pay off its obligations and is associated with an analysis of the structure of the company’s sources of funds. Liquidity (solvency) is the ability to cover assumed obligations with assets in a specific period of time.

Factors influencing the financial stability of the insurer can be divided into two groups - external and internal. External factors do not depend on the efficiency of the insurance company; these include economic, political factors, and the legislative framework.

Among the internal factors influencing the financial condition of the insurance company, the following can be identified:

Policy in the field of setting tariff rates;

Adequacy of insurance reserves in relation to accepted obligations under insurance contracts (otherwise losses and loss of solvency are possible);

Liquidity of own funds, placed mainly in real estate, and sufficient authorized capital;

The effectiveness of the investment policy, excluding the withdrawal from profitable turnover or loss of part of the insurance reserves and equity capital;

A balanced insurance portfolio that combines increased risks (up to certain losses) with modern insurance products.

The policy in the area of ​​setting tariff rates is to ensure that the amount of insurance tariffs corresponds to the degree of insurance risk under the contract being concluded. The amount of income of an insurance organization largely depends on the size of insurance tariffs. If the insurer, in order to attract policyholders, regularly underestimates the size of tariff rates, this will lead to the fact that the amount of collected insurance premiums will be lower than the amount of insurance payments that the insurer will need to make in connection with insured events, which will entail losses from the implementation of insurance activities . On the other hand, if the tariff rates are too high, the insurer may lose some of its clients who will insure themselves with other insurance organizations.

Financial management in an insurance organization plays a special role in making decisions on organizing the structure of financial turnover, while minimizing all risks of the insurer's activities. Its task is to ensure the stability of the financial position of the insurance organization, to develop measures for the effective management of the insurer’s financial flows. This is done through the use of financial analysis as the basis for optimizing the activities of an insurance organization. Its main financial indicators are:

Gross income (receipts from insurance and non-insurance activities);

Expenses (insurance payments and general business expenses);

Financial results (profit or loss);

Profitability.

An insurance organization may have income from insurance activities, investments, risk management, consultations, personnel training, rental of property, profit from the sale of fixed assets, material assets and other assets. Income from insurance operations is generated on the basis of insurance payments. They include:

Insurance premiums;

Amounts of reduction of insurance reserves;

Rewards and bonuses under coinsurance and reinsurance agreements;

Amounts of compensation by reinsurers for the share of insurance payments for risks transferred to reinsurance;

Amounts of interest on depot premiums for risks accepted for reinsurance;

Remuneration for the provision of services of an insurance agent, broker and other income received in the implementation of insurance activities.

Income from investment activities of insurance companies is divided into income received from the placement of insurance reserves, and income received from investing funds from reserves for compulsory insurance.

The insurer's expenses are formed in the process of distribution of the insurance fund. The composition and structure of expenses are determined by two interrelated economic processes: repayment of obligations to policyholders and financing the activities of an insurance organization. In connection with this, the following classification of expenses has been adopted in the insurance business:

Expenses for payment of insurance compensation;

Contributions to reserves;

Costs of running a business: organizational, acquisition, collection, liquidation, management.

Organizational expenses are associated with the establishment of an insurance company. They belong to the assets of the insurer, as they are investments.

Acquisition costs are associated with attracting new policyholders and concluding new insurance contracts through the mediation of insurance agents.

Collection expenses are expenses associated with servicing the cash flow of receipt of insurance payments. These include the costs of producing forms of receipts for receipt of insurance payments and accounting registers.

Liquidation expenses are incurred after the occurrence of an insured event and are associated with the elimination of damage from it.

Management expenses include expenses for remuneration of administrative and managerial personnel, administrative expenses and expenses for the development of insurance. In financial management, it is believed that in the absence of an “infusion” of funds, a corporation may become bankrupt if the profitability of its operations is below the profitability threshold. That is, an insurance company can afford to competitively reduce the insurance premium as much (cross the profitability threshold for insurance operations) as much as real profits for other types of activities allow it to do so.

According to Art. 25 of the Law of the Russian Federation dated November 27, 1992 No. 4015-1 (as amended on November 29, 2007) “On the organization of insurance business in the Russian Federation” guarantees for ensuring the financial stability of the insurer are:

Economically justified insurance rates;

Insurance reserves sufficient to fulfill obligations under insurance, co-insurance, reinsurance, mutual insurance;

Own funds;

Reinsurance.

Insurance reserves are a pool of funds for a specific purpose, formed from insurance premiums received by the insurer and used by it to cover the insurance obligations assumed. Insurance reserves are formed by the insurer for each type of insurance and in the currency in which the insurance is carried out. An insurance organization calculates the size of insurance reserves when determining financial results from insurance activities as of each reporting date. The insurer creates the following reserves:

1 insurance reserves for types of insurance other than life insurance, which include:

Unearned premium reserve (UPR);

Reserve for declared but unresolved losses (RLU);

Reserve for occurred but unreported losses (IBNR);

Stabilization reserve (SR);

Reserve for compensation of expenses for insurance payments and direct compensation of losses under compulsory civil liability insurance of vehicle owners in subsequent periods;

Other insurance reserves.

2 life insurance reserve.

The unearned premium reserve represents the base insurance premium received under insurance contracts in force during the reporting period and relating to the period of validity of the insurance contract that extends beyond the reporting period. To calculate the RNI, types of insurance activities are divided into three accounting groups, each with its own calculation option.

The reserve for declared but unresolved losses is formed by the insurer to ensure the fulfillment of its obligations under insurance contracts that arose in connection with insured events that occurred before the reporting date and the occurrence of which was notified to the insurance organization before the end of the reporting period, but insurance payments for which are still pending. reporting date were not made.

The reserve for occurred but unreported losses is intended to ensure that the insurer fulfills its obligations under insurance contracts that arose in connection with insured events that occurred during the reporting period, the occurrence of which was not declared to the insurance organization in the manner prescribed by law or the insurance contract on the reporting date.

The stabilization reserve is an assessment of the insurer's obligations related to the implementation of future insurance payments in the event of a negative financial result from insurance operations as a result of factors beyond the will of the insurer, or in the event of an excess of the loss ratio above its average value.

The coefficient of incurred losses is calculated as the ratio of the amount of insurance payments made in the reporting period for insured events that occurred during this period, the reserve for declared but unresolved losses and the reserve for occurred but unreported losses calculated for losses that occurred in this reporting period to the amount of earned insurance bonuses for the same period.

The stabilization reserve for compulsory civil liability insurance of vehicle owners is formed to compensate the insurer's expenses for making insurance payments and direct compensation for losses in subsequent periods when implementing compulsory civil liability insurance for vehicle owners. It is an assessment of the insurer's obligations related to the implementation of future insurance payments in the event of a negative financial result from the implementation of compulsory civil liability insurance of vehicle owners as a result of factors beyond the will of the insurer.

The optimality of insurance reserves is understood as the adequacy of their structure and size to the obligations assumed by the insurer under insurance contracts. Insurance reserves should be assessed in terms of their adequacy based on the nature of the operations carried out by the insurer. At the same time, establishing any standards is quite problematic. Although, if a number of insurance organizations carry out similar insurance operations and the volumes of these operations are comparable, then the size of the insurance reserves they form should be comparable, which means we can talk about the possibility of establishing uniform criteria. As for companies involved in insuring rare risks, it is unlikely that any indicator can be introduced here. The insurer's own funds include: authorized capital, additional capital, reserve capital, retained earnings. They are formed from contributions from the founders and from profits received as a result of the activities of the insurer. According to the legislation of the Russian Federation, the minimum size of the authorized capital of an insurer is determined on the basis of the basic size of its authorized capital, equal to 30 million rubles, and coefficients from 1 to 4, depending on the specialization of the insurance company.

To ensure their solvency, insurers are required to comply with the normative ratio established by the insurance supervisory body between assets and insurance liabilities assumed by them (normative solvency margin). Insurers are required to calculate the solvency margin quarterly.

Insurers who have accepted obligations in volumes exceeding the ability to fulfill them at the expense of their own funds and insurance reserves can insure the risk of fulfilling the corresponding obligations with reinsurers.

The presence of sufficient equity capital is an additional measure designed to ensure the insurer's ability to meet its obligations. The formation of insurance reserves alone does not fully ensure the financial stability of the insurer for the following reasons:

Technical reserves may turn out to be insufficient due to both subjective reasons (insufficient qualifications of personnel, weak information base, costs in organizing accounting, deliberate underestimation of them in order to maximize profits) and due to objective circumstances (general deterioration of the situation in the insurance market, manifestation of negative from the point of view of unprofitability factors);

Tariff rates may not be adequate to the obligations assumed;

The real value of insurance reserves may be much lower than the value shown in the balance sheet due to a decrease in the value of assets covering insurance reserves;

The insurer may need to expand the range of its operations. The obligations arising in this case cannot initially be covered by insurance reserves, so their function at this time is performed by free reserves.

Investment activity is another source of profit for insurance organizations, which in some cases even compensates for the losses that insurers may have from directly carrying out insurance activities. The risks associated with these operations force insurers to pursue a fairly cautious investment policy. The main requirements that it must meet are reliability and profitability. The principles that insurers must follow when carrying out investment activities are diversification, repayment, profitability and liquidity.

The principle of repayment implies the most reliable placement of assets, ensuring their return in full. The principle of liquidity implies that the overall structure of investments should be such that liquid funds or capital investments are available at any time and can be easily converted into them. According to the principle of diversification, the predominance of any type of investment over others should not be allowed. The principle of investment return states: assets should be placed while ensuring the named principles, taking into account the situation on the investment market, and at the same time bring a constant and sufficiently high income.

Of fundamental importance when carrying out investment activities is the assessment of the risk of loss of funds due to the insolvency of organizations in which insurers' funds are invested. The types of assets into which insurance reserves can be placed are established by Order of the Ministry of Finance of the Russian Federation No. 100-“On approval of the rules for the placement of insurance reserve funds by insurers.” As a rule, the foundation of the investment portfolio of insurers consists of such long-term and liquid investments, such as real estate, which, on the one hand, have a high level of reliability and can bring significant income, but, on the other hand, their sale can be associated with significant costs . At the same time, such medium- and short-term investments with high liquidity, such as shares, government securities, funds in bank accounts, must satisfy the urgent and sudden needs of insurance organizations for funds.

The financial condition of an economic entity is a characteristic of its financial competitiveness, that is, solvency, availability, placement and use of financial resources and capital, fulfillment of obligations to the state and other economic entities. The financial condition is the result of the financial policy of the insurer and is determined by the entire set of financial and economic factors of the insurance organization.

A sufficient amount of the insurer's own funds, or free reserves, guarantees its solvency under two circumstances - the presence of reasonable insurance reserves and the correct investment policy. In this case, it is necessary that the insurer's portfolio consist of a very large number of risks approximately equal in size, or a small number of risks commensurate with the size of the insurer's own funds, which can be achieved through the reinsurance system. Failure to comply with this condition may lead to the fact that even if one insured event occurs, the insurer will find itself bankrupt.

Since the financial stability of insurers depends on a large number of different factors, an analysis of their financial condition can only be carried out on the basis of a study of a group of indicators that make it possible to get an idea of ​​​​the various aspects of the activities of an insurance organization.

An insurance company, meeting the general requirements for business entities, has significant specificity due to the very nature of the insurance relationship, which is based on the category of risk, and the participation of the insurer simultaneously in several types of activities: insurance, financial and investment, each of which conducts, on the one hand, to the formation of company resources, and on the other, to the emergence of obligations. The economic efficiency and the very possibility of functioning of an insurance company is determined by its financial stability and solvency. Term "financial stability" in insurance it is understood mainly in two meanings:

1. financial stability as maximum adaptation of the quantity and quality of financial resources to the company’s environment in order to ensure solvency and further development of the organization;

2. financial stability as a synonym for financial condition, when we can talk about high or low financial stability, up to its complete insolvency.

Basically financial stability of the insurance company can be defined as the company's ability to fulfill its obligations towards all market entities, adapting to a changing economic environment. Financial stability of the insurance organization , writes Shirinyan L.V., - this is its ability to maintain or restore the original (or close to it) state or improve this state when external or internal parameters (factors) influencing financial flows change. Well-known specialist in the field of insurance Orlanyuk-Malitskaya L.A. defines financial stability as the ability of a market entity to maintain the quantity and quality of its financial resources when the environment changes. Any of the approaches in defining the concept of “financial stability” one way or another involves taking into account the impact of factors of different nature and degree of influence on the state of stability (instability) of an insurance organization. The degree of financial stability of the insurer is manifested when the company’s financial resources collide with the environment of its existence. In fact, this manifests itself as the realization of external and internal risks of the insurance company.

The financial stability of insurance organizations is of particular importance for the entire economy as a whole:

· the development of the insurance sector contributes to stabilizing the economy and ensuring the social sustainability of society, since by entering into financial relations with various economic entities, insurance organizations influence the efficiency of the entire chain of economic relationships in society;

· insurance activates the financial market, turning temporarily free funds of insurance reserves into investment resources;

· strengthening the financial stability of insurers has a beneficial effect on macroeconomic relations as a whole, since insurance acts as a market stabilizer.

Factors of financial stability these are those external and internal, qualitative and quantitative phenomena that affect the state of the company .

To external factors phenomena affecting the financial stability of an insurance organization include economic and non-economic phenomena. First of all, this is the state of the insurance market itself, the state of the insurance market, the state of the insurance infrastructure market. Among the external factors of an economic nature, one should mention the state of the public economy (the country's economy), the level of inflation, the solvency of the population, the dynamics of bank interest rates, the state of the securities market and taxation system, etc.

External factors of a non-economic nature include political, social, demographic, informational, psychological, natural and climatic, cultural and even religious. Studying the scale of influence of various factors in a particular market makes it possible to determine the optimal boundaries for regulating the activities of an insurance company.

To internal factors, ensuring the financial stability of an insurance organization include the size of the organization (equity capital, paid-up authorized capital), the specialization of the company, the organizational and legal form of the company's management (organizational management structure), tariff policy and tariff structure, balance (sustainability) of the insurance portfolio (its size and structure ), quality of investment activity (investment policy), skillful management of own expenses, reinsurance policy, composition and level of insurance reserves, level of specialist training, quality of underwriting, etc.

All factors ensuring the financial stability of an insurance organization can be divided into manageable and uncontrollable. Controlled factors include all internal factors and some external ones (demand, supply, market prices for insurance products, competition).

Uncontrollable factors include government structure, world market conditions, socio-ethical environment and other external factors.

It should be noted that isolating the influence of individual factors in the insurance business is problematic, since, as we already know, the price of an insurance product (insurance service) is influenced by both internal and external factors (the cost of the insurance product, the level of expenses for running a business, the desired profit from sales of an insurance product, the structure of the insurance portfolio, the state of the investment portfolio and the amount of income from non-insurance activities are internal factors; competition, market conditions, risk levels are external factors). At the same time, the state of the investment portfolio is largely determined by the state of the financial market, and the costs of doing business will depend on the rate of inflation, the insurance portfolio will largely depend on the insurance field, and the insurance field itself will be determined by demographic, socio-economic, natural -climatic factors and cyclical economic development. Thus, there is a total dependence of most external and internal factors, which extremely complicates, given the probabilistic nature of insurance operations, the problem of taking into account and assessing the effect of these factors in the process of regulating the activities of insurance companies.

According to paragraph 1 of Art. 25 of the Law of the Russian Federation “On the organization of insurance business in the Russian Federation” No. 4015-1 dated November 27, 1992 (as amended by Federal Law No. 104-FZot July 21, 2005) guarantees to ensure the financial stability of the insurer are:

· economically justified insurance rates;

· insurance reserves sufficient to fulfill obligations under insurance, co-insurance, reinsurance, mutual insurance contracts;

· own funds;

· reinsurance adequate to the activities of the insurer.

Tariff rate– this is the basis for determining the share of participation of each policyholder in the formation of the insurance fund. If the tariff rate is underestimated, the insurer may not have enough funds to fulfill insurance obligations (for insurance payments), that is, current damages may not be compensated. This will cause distrust of the insurer on the part of policyholders, and there will be an outflow of clients of the insurance company, which will further aggravate its situation. Therefore, insurance supervision monitors the validity of applied tariffs, their size and structure, applying legal sanctions in the event of an unreasonable reduction in tariff rates.

By using reinsurance homogeneity and stability of the insurance portfolio are achieved. The obligation to reinsure risks that exceed the insurer's own ability to retain is enshrined in insurance law and is objectively based on the law of large numbers, according to which the more risks that are relatively identical in degree of danger are collected in the insurance portfolio, the more stable the insurance portfolio and the easier it is to distribute risks among the participants of the insurance fund (equalization insurance risks), that is, in this case it is possible to most accurately calculate the results of upcoming insurance operations.

Above we stated that insurance reserves are bound by the obligations of upcoming insurance compensation payments under existing insurance contracts. Their sizes are determined based on the structure of the insurance portfolio by the current regulatory documents of the Federal Insurance Service. But for large risks, they cannot guarantee the insurer against the possibility of ruin (catastrophic loss) when making insurance payments, since even the most accurate calculation of insurance reserves is just an assumption. Therefore, many years of experience in the activities of insurance organizations have developed a certain a mechanism for protecting the solvency of the insurer through the formation of sufficiently free funds not bound by current obligations. These funds are formed from two sources: paid authorized capital and profit. To ensure solvency, the amount of available funds of an insurance organization must correspond to the amount of obligations assumed under insurance contracts. Adequacy of available funds The insurer guarantees its solvency subject to the following conditions: the presence of insurance reserves not lower than the standard level and a competent, effective investment policy.

In domestic practice, to assess the reliability of insurers, the following criteria are used:

· reliability of placement of assets covering insurance reserves, determined in accordance with the “Rules for the placement of insurance reserve funds by insurers”, approved by Order of the Ministry of Finance of the Russian Federation dated 08.08.2005 No. 100n;

· compliance with the ratio of assets and liabilities, the calculation method for which is established by the Federal Social Insurance Fund. / By order of the Ministry of Finance of the Russian Federation dated 02.11. 2001 No. 90n approved the “Regulations on the procedure for calculating by insurers the standard ratio of assets and insurance liabilities accepted by them” (as amended by Order of the Ministry of Finance of the Russian Federation dated 08.08.2005 No. 100)./

To ensure solvency, the amount of the insurer's free assets, calculated as the difference between the total amount of the insurer's assets and the amount of its liabilities, must correspond to (be greater than or equal to) the standard size (minimum acceptable).

The standard ratio of the assets of the insurer and the insurance liabilities assumed by it is the value within which the insurer, based on its insurance obligations, must have its own capital, free from any future obligations, with the exception of the rights of claims of the founders, reduced by the amount of intangible assets and receivables, whose repayment terms have expired (standard size of solvency margin). The excess of assets over liabilities confirms the existence of a solvency margin (net assets of the insurer).

To assess the financial stability of insurance organizations, various indicators are used, the classic of which are the coefficient of financial stability of the insurance fund, calculated from the current balance of income and expenses of the insurer, and the Konshin coefficient of variation, used to determine the degree of probability of a shortage of funds in any year.

The financial stability coefficient of the insurance fund is calculated as the ratio of the amount of income for the tariff period and the amount of funds in reserve funds to the amount of expenses for the tariff period for the entire insurance fund. The norm is considered to be when this coefficient is greater than one.

The Konshin coefficient of variation is calculated using the formula:

where T is the average tariff rate for the entire insurance portfolio;

Number of insured objects.

This coefficient can be used only when the insurance portfolio has already been equalized by equalizing the insured amounts for which insurance has occurred. This is achieved mainly through reinsurance (transferring part of the risks to reinsurance). The lower the coefficient of variation, the higher the financial stability of the insurance organization, since the less will be the degree of variation in the total insurance fund.

So, for an insurance organization to be financially stable, it requires a high degree of concentration of insurance fund funds, a developed and sufficient system of reserve funds, a reliable reinsurance scheme, etc.

It is recommended to read about financial status options in educational materials.

Solvency – the most important factor of financial stability. For Russia, the problem of the solvency of insurance companies is very relevant. The problem of solvency comes down mainly to the ability of the insurance company to fulfill all its obligations to policyholders within the terms stipulated by the contract.. The condition of the insurer's solvency implies additional requirements for the organization's assets: they must be sufficient and liquid (to the extent necessary to fulfill all insurance obligations). In the literature on insurance, in addition to the concept of “solvency,” there are also the concepts of “technical solvency” and “technical insolvency.” Technical solvency is associated with the presence of a balance that provides the reserve stock necessary to maintain a certain level of insurance activity. Technical insolvency is associated with the absence or shortage of funds, which is not yet actual insolvency, but already precedes it.

We know that the solvency of the insurer depends on the sufficiency of the formed insurance reserves. However, due to the uneven distribution of insured events over time and the possibility of a discrepancy between the actual loss rate and the predicted one (incorporated when calculating tariffs), the insurer’s assets must include funds free from all liabilities, sufficient to fulfill obligations under the claims of policyholders in the event of insufficient insurance reserves. We have already said above that this part of the insurer’s own funds is called solvency margin (the part of assets not associated with any foreseeable obligations). Solvency margin equal to the difference between the value of the organization’s assets and its insurance liabilities.

The solvency margin sets a certain level, beyond which it triggers regulatory actions by insurance supervision. This level should be high enough to allow intervention in the company’s affairs at the very beginning of financial difficulties. The purpose of such intervention is to protect the rights of policyholders and, to a certain extent, shareholders, since timely intervention will either correct the situation, or, if the collapse of the company is inevitable, at least minimize the losses of policyholders. That is, the required solvency margin must be such as to ensure the fulfillment of obligations by insurers for a sufficiently long time. Today, in many countries, the solvency margin has begun to be used to determine the financial stability of an insurance organization. For these purposes, a distinction is made between the “actual solvency margin” and the “standard solvency margin”. The regulatory solvency margin is its minimum level, below which it should not fall (according to the requirements of insurance supervision). Current calculation methods involve comparing the actual size of the solvency margin with its standard level, which is calculated according to the data of the insurance organization in accordance with the instructional materials. Calculation of standard size solvency margin (PLN) depends on the specialization of the insurance company. There is a separate settlement system for personal insurance(life insurance and two risk types of insurance - accident and illness insurance and medical insurance) and a settlement system for organizations engaged only in risk types of insurance(non-life insurance).

Actual Solvency Margin (SLM) according to Russian legislation, it is equal to the difference between the amount of the authorized capital (AC); additional capital (AC); reserve capital (RC); retained earnings of the reporting year and previous years (NP) and the amount of uncovered losses of the reporting year and previous years (NU); debts of shareholders on contributions to the authorized capital (CA); own shares purchased from shareholders (AK); intangible assets (IA); overdue accounts receivable (AR).

That is, the actual size of the solvency margin is calculated using the formula:

PLF = UK + DK + RK + NP – (NU + FOR + AK + NA + DZP)

The insurance company is considered solvent , if the actual solvency margin is not less than the normative one by 1.3 times, that is, the following ratio is observed: PLF = 1.3 PLN.

If the actual solvency margin is greater than the normative one, but this excess does not reach 30%, then the insurance organization is obliged to submit a plan for its recovery for approval to the Ministry of Finance of the Russian Federation. At the same time, the insurance organization is obliged to report quarterly on the progress of implementation of the plan to improve the financial situation to the Ministry of Finance of the Russian Federation and to the territorial bodies of the Federal Insurance Fund. Otherwise, the FSSN will take full control over the insurer’s recovery.

The solvency of the insurer is also determined through the solvency level indicator. Solvency level (LP) is defined as the ratio of equity to the net premium collected by the company for the reporting period. The minimum level of solvency of an insurance organization is set in Russia at 20%.

In addition to the above indicators, it is also calculated , which is calculated as the ratio of the difference between the actual level of solvency (ALP) and the standard level of solvency (SLP) of the insurance organization to the standard level of solvency (SLP) (calculated as a percentage). For insurance companies engaged in property insurance, there is a table for determining the adequacy of own funds, according to which, if level of sufficiency of coverage with own funds

less than 0% - insufficient coverage;

from 0% to 25% - normal coverage;

from 26% to 50% - good coverage;

from 51% to 75% - reliable coverage;

over 76% - excellent coverage.

So, the state regulates the solvency of insurers through:

· establishing the minimum amount of authorized capital;

· determining the composition and methods of forming insurance reserves;

· regulation of investment activities regarding the placement of insurance reserves;

· regulation of reinsurance activities;

· establishing economically justified insurance rates (in voluntary insurance there is no legislative regulation);

· introducing requirements for the ratio of assets and liabilities of the insurer;

· establishing calculations of the standard size of the solvency margin;

· requirements for compliance with the ratio of actual and regulatory solvency margins;

· tougher sanctions against insurers who do not comply with the above requirements, as well as in the event of failure by the insurer to take the required measures to improve the financial situation.

In practice, indicators for assessing financial stability are distinguished as follows:

· capital structure indicators;

· liquidity indicators;

· indicators of business activity (turnover);

· profitability indicators.

Let us briefly describe these groups of indicators used in Russia.

Capital structure indicators include:

1. Equity level , calculated as the ratio of equity to the balance sheet total. Reflects the financial structure of the insurance organization's funds and shows the degree of security of the insurer's assets with its own capital. It is considered normal if this coefficient greater than or equal to 50%.

2. Level of borrowed capital, calculated as the ratio of borrowed capital to the balance sheet total. Characterizes the capital structure from the position of borrowed funds. It is undesirable when this indicator turns out to be high, which is not always possible, therefore in practice it is considered the norm if this indicator is within 50%.

3. Financial activity ratio, calculated as the ratio of debt to equity capital. Characterizes the relationship between assets secured by creditors and assets secured by shareholders, that is, it shows the degree of dependence of the organization on external sources of financing. As a rule, this indicator must be less than or equal to 1, since a high level of this indicator indicates a risky position of the organization, since failure to repay obligations to creditors may lead to bankruptcy of the insurer.

4. Level of insurance reserves, calculated as the ratio of insurance reserves to all assets of the insurance organization(shows the share of insurance reserves in the capital of the insurance organization). The higher the value of this indicator and the higher its dynamics, the higher the financial stability in terms of providing insurance protection. Indicators of 70% or more are considered sufficient.

5. Ratio of insurance premiums and insurance reserves is calculated as the ratio of the amount of insurance premiums for all types of insurance to insurance reserves. Shows the dependence of changes in the size of the insurance fund on insurance activity (collection of premiums). An increase in this indicator with an increase in insurance reserves indicates a trend towards increasing policyholder confidence in this insurer.

6. Ratio of working and non-current capital - shows changes in the insurer's capital structure. A decrease in this indicator for a stable operating company generally means an improvement in the economic situation, but with significant fluctuations in the coefficient, a more detailed study of the reasons that caused these changes is required.

7. Level of invested capital, calculated as the ratio of the sum of long-term and short-term financial investments to all assets. Shows the share of assets allocated to investments. The values ​​of this coefficient can fluctuate in both directions, depending on the long-term economic strategy of the insurer, aimed at increasing financial stability and increasing the liquidity of assets. With the expansion of insurance activities, the coefficient always increases.

8. Permanent capital level, calculated as the ratio of the sum of equity capital, insurance reserves and long-term liabilities to assets. Shows the share of all long-term capital in the assets of an insurance organization and reflects the financial capabilities and reliability of the insurance organization in the long term. The coefficient values ​​are considered sufficient at the level of 90% or more.

Liquidity indicators:

1. Total balance sheet liquidity, calculated as the ratio of working capital to the amount of short-term liabilities and insurance reserves. Reflects the sufficiency of the insurance company's working capital to pay off all short-term obligations, including the occurrence of insured events. The recommended value of the ratio should be greater than 1.0, since the working capital must be sufficient both to pay insurance claims and insurance amounts, and to repay short-term liabilities, otherwise the company may be insolvent during the analyzed period of time.

2. Current liquidity, calculated as the ratio of the difference between working capital and long-term receivables to the amount of short-term liabilities and insurance reserves. Characterizes the solvency of the organization; Recommended coefficient values ​​should be in the range of 1.0 – 1.3. That is, the amount of the insurer's working capital must be sufficient to cover short-term obligations and payments of insurance amounts and insurance compensations in the amount of insurance reserves. Each company determines the optimal value of the coefficient for itself. Moreover, the larger the volume of insurance reserves and the more funds are invested in long-term financial investments, the closer the value of this indicator is to one. Therefore, insurance organizations with a risky insurance portfolio are subject to more stringent liquidity requirements.

3. Liquidity of cash reserves (“the norm of cash reserves” – in world practice), calculated as the ratio of the amount of cash and short-term financial investments to the amount of short-term liabilities and insurance reserves. This indicator reveals the impact of short-term receivables on the liquidity of the insurance company's balance sheet.

4. Urgent liquidity, reflects the internal short-term liquidity of the insurer's balance sheet and is calculated as the ratio of the amount of cash and short-term financial investments to short-term liabilities. The ratio shows the ability of an insurance company to repay its short-term debt in the near future. The recommended value of the indicator is more than 1.0. For Russian insurers, this indicator may be 10.0 or more, since they practically do not engage in long-term investments, but mainly short-term ones.

5. Absolute liquidity, calculated as the ratio of cash to current liabilities. This indicator reveals the ratio of the most liquid part of working capital (cash) to current liabilities. Using this indicator, you can determine what share of short-term liabilities can be covered by the most liquid part of working capital in the shortest possible time. The coefficient values ​​are considered sufficient within the range of 0.2 -0.5.

Business activity indicators are of great importance for assessing the financial condition of an insurance organization, since with an increase in the rate of capital turnover, the volume of profit coming from insurance operations, investment and other activities also increases, which strengthens the solvency of the insurer. Typically, five indicators are calculated to give an idea of ​​the financial activity of an insurance organization:

1. Total asset turnover, is calculated as the ratio of all income to the average working capital for the selected period. This coefficient shows how many times during the selected period a complete cycle of circulation of all assets of the insurer is completed, generating the corresponding income. The value of this indicator is individual for each insurer and largely depends on the strategy and tactics of the organization, the economic situation in the country and region, and competition in the insurance market. The indicator is used for comparative analysis of the activities of insurance organizations or branches of an individual insurance company.

2. Total equity capital turnover, is calculated as the ratio of all income to the average equity capital for the period under review. The coefficient shows the rate of turnover of equity capital and the efficiency of its use for the analyzed period. A decrease in this indicator indicates a deterioration in equity capital turnover, and its growth, as a rule, is characteristic of stable operating organizations.

3. Total turnover of insurance reserves, is calculated as the ratio of all income to the average value of insurance reserves for the analyzed period. Shows the dependence of the growth of the insurer's income on the volume of insurance reserves, since insurance reserves, in addition to their main purpose - insurance protection, are the main source of growth of resources for investment activities and extraction of investment income (profit).

4. Turnover of invested capital, is calculated as the ratio of investment income to the average amount of invested capital for the period. Reflects the efficiency of using funds allocated by the insurer to short-term and long-term investments. The coefficient is interesting for comparative analysis of the activities of a number of companies.

5. Total turnover of permanent capital, is calculated as the ratio of all income to the average value of permanent capital for the period. Shows how quickly capital in long-term use turns over.

Profitability indicators are represented by two groups of coefficients: return on capital and profitability of activities.

Profitability of all assets is calculated as the ratio of profit before tax to the average value of all assets for the period under study. Shows in general terms the efficiency of using the entire capital of an insurance organization.

Return on all assets based on net profit is calculated as the ratio of net profit to the average value of all assets for the period under study. Shows how much net profit the insurer receives per ruble of its capital.

Return on working capital is calculated as the ratio of profit before tax to the average working capital for the period under study. Shows the effectiveness of working capital management of an insurance organization. Reflects the effectiveness of using the largest and most mobile part of capital in relation to obtaining maximum profitability. (Shows the amount of profit before tax received for each ruble of working capital.)

Return on equity is calculated as the ratio of profit before tax to the average equity capital for the period under study. Shows the effectiveness of the owners' funds invested in the insurance organization. This coefficient allows the owners of an insurance company to compare the income from investments in this company with possible income from investing the same amount of funds in other enterprises or securities.

Profitability of insurance reserves is calculated as the ratio of profit before tax to the average value of insurance reserves for the period under study. Shows the efficiency of using insurance reserves and allows you to compare your own efficiency of using the insurance fund with similar values ​​of other insurance organizations.

Return on invested capital is calculated as the ratio of the result of investment activity to the average amount of short-term and long-term investments for the period under study. Allows you to draw effective conclusions during a monitoring study of changes in this indicator over time. (Changes in the rate of growth and increase in results from investment activities in comparison with changes in the values ​​of growth rates and increase in the amount of invested capital and increase in the coefficient as a whole.)

Profitability of all operations for profit before tax is calculated as the ratio of profit before tax to the sum of all income. Shows the effectiveness of an insurance organization's promotion to the market in all areas of activity. (Shows the share of book profit in income.)

Profitability of all operations based on net profit is calculated as the ratio of net profit to all income (the level of net profit in income). In comparison with the profitability indicator before tax, it reflects the pressure of the “tax pressure” of the state and local authorities on the income of the insurance organization for all types of activities.

Profitability insurance activities is calculated as the ratio of results from insurance activities to all income from insurance activities. Shows the profitability of insurance (core) activities, “cleared” of other income and results, allows you to determine the effectiveness of insurance activities and plan for profit (loss) from it.

Profitability of investment activities is calculated as the ratio of the result of investment activity to investment income. Shows how effectively investment activities are carried out.

Profitability of other activities is calculated as the ratio of results from other activities to other income. Shows the efficiency of the insurer's activities not related to insurance and investment activities. Allows you to compare which areas of activity (insurance, investment or other) are most profitable for the insurance organization during the period under study.

The given coefficients, in conjunction with other indicators characterizing the financial condition of the insurer, are of interest to managers of almost all business entities (banks, insurers, economists, financiers, institutional and individual investors), and not only to managers of insurance organizations, since they give them the opportunity to assess the financial the condition of the insurer at any time and track its changes.

Questions

1. What is the distinctive feature of the finances of an insurance organization?

2. How is the cash flow of an insurance organization characterized?

3. What are the general principles of organizing the finances of an insurance company?

4. What funds do insurance companies use in their activities?

5. What is the profit of insurance organizations formed from?

6. What is profit in tariffs?

7. What is the role of the insurer’s non-insurance activities in generating profits?

8. How is the financial result of insurance activities calculated?

9. What is the income structure of the insurance company?

10. List the composition of the insurance company's expenses.

11. What are the insurance reserves of an insurance organization?

12. Formulate and explain the basic requirements for the placement of insurance reserves as investment resources.

13. List the main permitted areas for the placement of temporarily free funds of an insurance organization.

14. Indicate prohibited areas for placing insurance reserve funds.

15. What are mathematical and technical reserves of an insurance company?

16. What ensures the solvency of the insurer?

17. What is the ratio of regulatory and actual solvency margins for insurance companies and why is it necessary?

18. What is meant by the financial stability of insurance operations?

19. What indicators characterize the financial stability of the insurer?

Annex 1

Main types of compulsory non-social insurance

Personal insurance

1. Compulsory life and health insurance for aircraft crew members.

2. Mandatory personal insurance for passengers.