IBI-Rating has affirmed the financial strength rating of PJSC «NJSIC «ORANTA» at uaAA–ifr grade

Rating agency IBI-Rating informs on affirming of the financial strength rating of PJSC «NJSIC «ORANTA» at uaAA–ifr grade, with changing outlook to «stable».

The affirmed grade of the financial strength rating of PJSC «NJSIC «ORANTA» is due to the company’s being one of the largest players in the insurance market of Ukraine, an increased share of highly liquid assets in the categories of assets, which represent insurance reserves, as well as decreased sensitivity of the Insurer to market risk due to reduced investments in securities, also Agency notes an increase in the volume of earned insurance premiums and absence of debt burden in the form of bank loans or debt on the placed debt securities. In turn, there is low diversification of the insurance portfolio, unprofitable activity in the results of 9 months of 2017, a high share of reserves of declared but not paid losses, in general insurance reserves, as well as the high value of the combined loss ratio.

PJSC «NJSIC «ORANTA» is the legal successor of Ukrgosstrakh, founded on November 25, 1921. In 1993, Ukrgosstrakh was transformed into the Public Joint-Stock Company «National Joint-Stock Insurance Company «Oranta», the founder of which was the State Property Fund of Ukraine. In 2007, the State Property Fund of Ukraine sold to the investor the last shareholding which was in state ownership. As of the 01.10.2017, the shareholders of PJSC «NJSIC «ORANTA», which have more than 10% of the shares, are JSC «BTA Bank» (Kazakhstan – 35.17% of shares), as well as company registered in the Republic of Cyprus - BACKWOOD HOLDINGS LIMITED (13.74%).

The insurer activities basis on the 33 licenses - 15 mandatory and 18 voluntary types of insurance. Following the results of I half-year of 2017 PJSC «NJSIC «ORANTA» occupied such positions among more than 264 participants of the insurance market (non-life): assets - 13th place; own capital - 14th place; insurance premiums and payments - 12th place; insurance reserves - 11th place. In addition, PJSC «NJSIC «ORANTA» stably ranks first in terms of the volume of insurance premiums for compulsory insurance of civil liability of owners of land vehicles. Net loss of the insurer in January-September 2017 amounted to UAH 3 mln.

In order to conduct the analytical research the materials provided by PJSC «NJSIC «ORANTA» have been used, including: the annual financial statements for 2014-2016 and 9 months of 2017, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.

Financial department
For additional information please contact:
Press office of IBI-Rating
(044) 362-90-84