2015 Annual Report


Insurance and wealth management

2015 brought Sberbank a number of considerable results in the wealth management business, despite negative macroeconomic trends.

Sberbank’s share in the market of life insurance


4.2 million
the number of customers of the Private Pension Fund of Sberbank

The existing customer base increased from 7.5 million to 13.2 million customers over the year, and assets under Group’s management increased from RUB 221 billion in 2014 to RUB 450 billion in 2015. In 2015, the Bank sold over 9.5 million wealth products for individuals within its network (insurance, pension and investment products), and 137,000 insurance policies were issued to corporate customers.

Sberbank Life Insurance IC has secured its leadership in the life insurance market with a 34% market share. The total volume of insurance charges amounted to RUB 43.6 billion, with a net profit of  RUB 6.7 billion In accordance with the results of Sberbank Life Insurance IC in 2015 under IFRS. . By the end of 2015, the total number of the company’s customers exceeded 5 million. Last year, the company released a range of new, successful innovation products, such as Rentier, an investment product with life-long annuity payments, microendowment life insurance, and international health insurance. In addition, last year Sberbank Life Insurance paid special attention to customer service quality, and as a result it won a prize for the Best Contact Centre in the insurance market. In 2015, Sberbank Life Insurance won several public contests; it was nominated the Year’s Best Company in the Life Insurance Sector as part of the public award Financial Elite of Russia 2015 and received the Life Insurance Market Leader diploma from Expert RA.

Sberbank Life Insurance is the fastest growing company in Russia’s insurance market by subscribed insurance premium. In 2015, the company generated proceeds of RUB 3.7 billion and launched over 30 new products. Over 1.5 million persons all over Russia became customers of the Company. In the first year of its active development, the Company made the list of the top 10 insurers of Russia for private property insurance, and in the top 15 based on online sales in Russia (according to the Central Bank of Russia). Thus, the company moved from 119th place in 2014 to 34th place in 2015 by total proceeds and 13th place by insurance policies sold (according to the Central Bank of Russia).

In 2015, the first year of operations, Sberbank Insurance Broker started making operating profits generating RUB 108 million. Expert RA assigned the company an A+ rating on 30 December, 2015. The number of corporate customers exceeded 20,000; the insurance market accepted RUB 6.7 trillion in insurance coverage with the insurance broker’s assistance. The development strategy involves regional presence in each constituent of the Russian Federation, and the company took 6th place by revenue in the insurance brokerage market in 2015 (according to the Central Bank of Russia) and set up a framework for adjusting. By the resolution of the President’s Council of the Fund for Business Initiative Support, the Company was awarded title “Reliable Product and Service Supplier” as part of the Company No. 1 award.

Sberbank Asset Management is ranked the best in Russia for the second year in a row by the ranking of Extel Pan-Europe Survey

In 2015, the Private Pension Fund of Sberbank became the absolute leader in the market of mandatory pension insurance by the total number of customers insured in 2015, 1.1 million, having increased pension savings to RUB 322 billion and the number of customers to 4.2 million. The average account of mandatory insurance customers ranks among the highest positions in TOP-10 PPF and totals RUB 77,900 exceeding the average market account of RUB 62,700 (according to the Central Bank of Russia as of 30 September, 2015). Sberbank PPF was among the first members of the Deposit Insurance Agency (DIA). In 2015, Sberbank PPF offered customers new technologies for executing and servicing agreements, including the use of a digital signature that allows customers to transfer their pension savings without the need to visit the PPF, a new personal account with extended options and text-notification of any actions associated with the agreement. These developments were made possible due to high professional skills and the efficient well-coordinated work of the Fund employees and received the following awards: Company of the Year in the category of Private Pension Funds, MPI Growth Leader from Expert RA, High Diversification of the Market Customer Base, Financial Olympus in the Profitable PPF category, and the status of country’s largest PPFs by RIA Rating.

Sberbank Asset Management plays a leading role in the development of the mutual fund sector, managing the assets of 19 open and 5 closed investment funds, and is successfully strengthening its leadership positions in the open mutual fund segment, with a market share exceeding 25% Rating of management companies by net asset value as of 31 December, 2015, Investfunds.ru . Last year, the top-ranking Sberbank Bonds Fund Ilya Muromets OPIF outperformed competitors by income amount (+35%); the Sberbank — Consumer Sector OPIF took second place by profit margin among open unit investment funds (+60%); the Sberbank Biotechnology OPIF was top-rated by the amount of funds due to unit holders in 2015, with net input of RUB 3.75 billion According to ratings as of 31 December, 2015, Investfunds.ru . Successful achievements and developments of the management company are regularly celebrated by awards and prizes. In 2015, the company was the winner of Company of the Year award in the Management Company category; and the Sberbank — Asset Management Fund OPIF won the national Financial Olympus 2014/2015 award in the Profitable PIF category. The analytical team of Sberbank Asset Management is ranked the best in Russia for the second year in a row by the well-known ranking of Extel Pan-Europe Survey. The management company has been assigned the highest credit and financial strength rating, A++, by Expert RA since 2003 and AAA by the National Rating Agency since 2014.

In 2015, the Sberbank Depositary was also declared the leader of the Russian depository services market, was included among the best depositaries of developing markets, and received the Category Outperformer, Market Outperformer, and Global Outperformer awards. Sberbank Depositary maintains 443 custody accounts. The market value of customer assets under custody in 2015 grew from RUB 3.5 trillion to 4.3 trillion. During the reporting year, the Bank started providing custody services for individual investment custody accounts; 49,200 such accounts had been opened as of 1 January, 2016. The Bank has also started to provide the services of a special depository for insurance companies with agreements concluded with 25 insurance companies and a total value of transferred assets of RUB 238 billion. An international bank issuing depositary receipts carried out its annual online attestation of the Depository as the custodian of Russian shares securing the issue and circulation of ADR/GDRs in Western markets. The rules and forms for the identification of Depository customers (legal entities and credit institutions) for FATCA purposes have been put into effect. A special depository was on the list of the top 2015 leaders in the market of depositary services for mortgage bonds following the results of 2015.