Ukrainian Insurers Increase CASCO Premiums 78.1% yoy in 9M

Ukrainian insurers boosted CASCO (motor transport hull insurance) premiums 78.1% yoy in 9M07 to USD 515 mln. During the period, the number of CASCO insurance agreements signed increased by 43.2% yoy to 537 ths. CASCO payments edged up in the total share of insurance premiums from 19% in 9M06 to 21% in 9M07. Alexander Viktorov: CASCO premium growth has already exceeded our 2007 forecast of 60%; the CASCO segment remains the key driving force behind Ukraine’s insurance industry growth. The main reason for rise is continued strength in new car sales (up 34.2% yoy in 9M07) with 365 ths automobiles in 9M07. We project car sales to be robust through the end of the year and finish 40% higher than 2006. These trends strongly favor Universalna Insurance (SKUN: HOLD), the fourth largest car insurer in Ukraine by premiums, which generates 35% of gross premiums written from CASCO.