SAFMAR Financial investments announces 9M 2017 IFRS results
Moscow, November 27, 2017
PJSC SAFMAR Financial investments (Company, Holding Company, MOEX: EPLN1), a public diversified investment holding company, today has published its financial statements for the nine months ended 30 September 2017 in accordance with IFRS. Simplified consolidated interim financial statements were approved during the review by Ernst & Young LLC and are available on the corporate website: http://safmarinvest.ru/docs.
KEY FINANCIAL RESULTS
Net profit of the holding company for the nine months of 2017 amounted to RUB 4.9bn and increased by 19% compared to the same period last year2. VSK Insurance House became a leader in profit growth among the portfolio companies of the holding (+78% year-on-year).
Equity of the holding company as of 30.09.2017 amounted to RUB 83.1bn compared to 78.3bn as of 31.12.2016 (+6%). Return on equity amounted to 9%.
JSC LC Europlan3
Net profit of JSC LC Europlan for the nine months of 2017 increased by 17% compared to the same period last year and amounted to RUB 2.5bn with return on equity of 27.9%. Equity of LC Europlan after its reorganisation in the form of spin-off from PJSC Europlan4 amounted to RUB 8.9bn as of 30.09.2017.
Leasing portfolio of LC Europlan for the reporting period increased by 28%, from RUB 27.6bn as of 31.12.2016 to RUB 35.3bn as of 30.09.2017. New business volume (VAT included) amounted to RUB 50bn, which is 63% higher compared to the same period last year.
VSK Insurance House
Net profit of VSK Insurance House for the nine months of 2017 in accordance with IFRS increased by 78% and amounted to RUB 4.9bn compared to the same period last year with return on equity of 37%. Assets and equity of VSK as of 30.09.2017 amounted to RUB 92bn and RUB 19.6bn respectively.
VSK gross written premiums for the nine months of 2017 increased by 35% year-on-year up to RUB 51.7bn. Meanwhile, combined ratio for the nine months of 2017 went down by 2.4%, to 91.9% compared to last year due to restructuring of the insurance portfolio and enhancement of business efficiency.
Assets of NPF SAFMAR for the nine months of 2017 in accordance with IFRS amounted to RUB 218.4bn, liabilities – to RUB 196.4bn. Equity as of 30.09.2017 amounted to RUB 22bn.
Net profit of the fund from placement of pension savings, pension reserves, as well as own funds, calculated in accordance with IFRS, amounted to RUB 1.7bn.
Negative revaluation of a number of securities in the fund's portfolios in the third quarter of 2017 led to a loss for the nine months of 2017 in the amount of RUB 134.6m. At the time of publication of IFRS statements for the nine months of 2017 the market value of a number of securities, that negatively impacted financial results of the fund in the third quarter of 2017, recovered, which significantly reduced the effect of negative revaluation.
The number of NPF SAFMAR clients as of 30.09.2017 amounted to 2.3 million insured clients and more than 79,000 people participating in non-state pension plans.
KEY CORPORATE EVENTS IN 3Q 2017
- The reorganisation of the holding company was completed in full accordance with promises to the investors on the eve of the PJSC Europlan SPO in December 2016: on August 9, 2017, following the results of the Shareholders’ Extraordinary General Meeting, PJSC Europlan was renamed into PJSC SAFMAR Financial investments, the Company's Charter new edition was approved, and Mr. Avet Mirakyan also appointed CEO as the Sole Executive Body;
- Fitch Ratings has assigned ’BB-’ credit rating with a Stable Outlook to JSC «LC «Europlan»;
- JSC LC Europlan assigned credit rating at ruA level (Expert RA);
- Inclusion of PJSC SAFMAR Financial investments shares into calculation of the FTSE Global Equity Index Series (Emerging Europe) – FTSE All-World, as well as inclusion of the shares into Small Cap sector starting September 18, 2017;
- Confirmation by Fitch rating agency of VSK ratings at ‘ÂÂ-‘ level.
PJSC SAFMAR Financial investments (MOEX: EPLN) is a public diversified investment holding company with the focus on financial sector, founded at the end of 2016 during SPO of PJSC Europlan on the Moscow Exchange. Its investment portfolio consists of Russian companies bringing together leasing, insurance and pension assets, including 100% in JSC LC Europlan, 49% in VSK Insurance House and 100% in JSC NPF SAFMAR. The holding company is part of SAFMAR Group founded by Mikhail Gutseriev, one of Russia’s largest industrial and financial groups, which comprises industrial, retail and financial companies and manages assets in the area of commercial real estate, construction, development and other assets.
1 Trade code will change after official renaming of PJSC Europlan into PJSC SAFMAR Financial investments.
2 Net profit of the holding company in accordance with IFRS with allowance on consolidation of assets during 2016.
3 Results for the leasing sector and LLC IC Europlan (for five months of 2017, withdrawal from consolidation on 09.06.2017) are calculated on the basis of interim consolidated financial statements (IFRS) of JSC LC Europlan for nine months up to 30 September 2017.
4 Operational spin-off of leasing business into a separate legal entity took place on 30.06.2017 with 100% participation of the holding company.