Universalna Insurance’s Gross Premiums Rise 50% yoy in 2007

Interfax reported that Universalna Insurance (SKUN: BUY) increased premiums collection by 50% yoy to USD 50.3 mln in 2007. The company paid out USD 17.3 mln in claims (57% more than in 2006). Last year consolidated net income was around USD 0.3 mln, according to the company. Motor insurance remained the fastest growing and largest segment for Universalna: CASCO (motor transport hull insurance) receipts grew 92.8% yoy to USD 20.4 mln, while OMTPL (obligatory motor third-party liability insurance) receipts surged 73.7% yoy to USD 5.6 mln in 2007. Its property insurance also picked up last year, growing by 29% yoy, to USD 8.6 mln. Alexander Viktorov: The company’s 2007 premiums and net income are right in line with our expectations. We see 2008 premiums surging 166% yoy driven mainly by acquisitions in Ukraine, Moldova and Belarus. Universalna will continue to reap the benefit from enforcement of OMTPL coverage, which began in earnest on January 1, 2008. We expect the OMTPL market in Ukraine to double to USD 300 mln this year.