Participation in Company’s Profits

Generally, the period of insurance contract makes up decades. The amount of insurance payment is calculated in such a way that the insured amount could be paid in full upon the occurrence of the insured event regardless of the number of insurance payments made.

Moreover, in addition to guaranteed insurance indemnity, the insurance policy provides for the accumulation of payments made and the increase in these funds due to the investment income added by the company.

There is a standard European procedure operating in Ukraine whereby clients can participate in the company’s profits through allocation of its funds. The procedure consists of two components: minimum guaranteed income for the entire period, which, in accordance with the law and in order to ensure reliability and stability of the insurance company, can not exceed 4% annual and is accrued by the company in favour of its clients annually based on the year performance.

Therefore, the amount indicated in the insurance policy is a minimum guaranteed amount. Moreover, this amount is increased on an annual basis due to the company’s distributing a substantial share of earned profits between its clients. In compliance with article 9 of the Law of Ukraine "On Insurance", such additional investment income is distributed between the clients and the company in the ratio of 85% to 15% respectively.

Given the present stage of development of Ukraine and its economy as a whole, there observed a tendency whereby the increased return on investments will maintain as compared to European and global markets and is believed to be of a long-term nature according to numerous expert assessments. This state of affairs enables the JSC "Insurance Company "Oranta-Life" to continuously ensure the high return on its policies over the last years.

Based on current investment policy development tendencies, certain estimations about the profitability of the company’s insurance policies can be made.

JSC "Oranta-Life" has declared 12,5%  profitableness on its long-term life insurance policies for its clients resulting from the investment activity of the company in 2007.