PRESS: Rosgosstrakh seeks to avoid losses in 2018 Ц exec
MOSCOW, Jan 29 (PRIME) -- Russian insurance company Rosgosstrakh hopes to finish 2018 without losses, business daily Vedomosti reported Monday citing the companyТs First Deputy CEO Vyacheslav Vorobyov.
CEO Nikolaus Frei told the daily that Rosgosstrakh stopped bringing profit in 2015, when it had a loss of 5 billion rubles, and losses only increased after that. In 2016, the companyТs net loss soared to 33.3 billion rubles, as calculated under International Financial Reporting Standards (IFRS).
Vorobyov said the company started a detailed audit of efficiency of its retail network to improve the situation.
Under the audit results the company can reduce the number of its offices, Vedomosti said. According to the daily, Rosgosstrakh had over 100,000 employees and agents in 2016, while from October 2016 through August 2017 the number of the companyТs agents decreased to 56,000 from 65,000. A representative of the company said there will not be a reduction of up to 50% in the Moscow district. УOptimization of the network will not be carried out through mechanical reduction of the number of sales outlets,Ф Vorobyov said.
The company could also reduce its share on the market of mandatory auto liability insurance, known in Russia as OSAGO, the daily said. The companyТs share on the market reached 40%, but with intention to reduce losses the company brought it to 10% by the end of the year and plans to maintain this level this year, Vedomosti said.
(55.8288 rubles Ц U.S. $1)