Expert word

Demonstration performance

In addition to RESO-Garantia another insurance company has announced its intention to hold an IPO. The MAKS Company plans to do it in 2011. For this purpose МАКS which is currently a private company, is going to change its organizational and legal status and begin to prepare IAS reports (the first report planned to be out will be based on the 2006 results).

The IPO exact parameters being not known as yet, it is too early to speak about them. Noteworthy is the fact that the purpose of the public offering is not so much to attract an additional financial resource as the company’s desire to show its transparency and publicity, says Nadezhda Martyanova, CEO of ZAO MAKS and ZAO MAKS-M.

Presently ZAO MAKX has an Expert RА reliability rating of A++ (A high level of reliability with positive prospects). The MAKS Group regularly participates in insurance market studies conducted by Expert RА. Based on the 2006 results the MAKS Group occupied the eleventh place in the market in payments excluding Obligatory Health Insurance (OMI), says Expert RА. The Group is also among the top ten leaders in such types as health, accident insurance, financial risks, property insurance, company liability insurance which are sources of increased danger. The MAKS Group is the leader on the OMI market.

Based on the 2006 results the Group collected 37,201.0 mln. rubles, including 29,247.9 mln rubles in OMI. The MAKS business differs from the rest in its high share of retail clients among insurants and its independence from proprietors in corporate insurance. Without taking into account its OMI business ZAO MAKS may be worth about 450 million dollars which corresponds to the multiplier to a premium of 1.5, say Expert RА analysts. At the same time they note that Russian insurers find it more profitable to sell out to strategic investors than to hold IPOs which into the bargain are accompanied by high allied costs.

Nevertheless, the desire of an increasing number of insurers for openness and publicity shows that the market is undergoing yet another stage of "adulthood", and this process is unstoppable. It will grow only in the future. I am sure that in a matter of two years 3-5 insurance companies will publish their IAS reports and only one or two at most will be traded at the stock exchange ". Meanwhile IAS reports are published by just one insurance company and a reinsurance one.