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IBI-Rating has affirmed the financial strength rating of «SALAMANDRA-UKRAINE» INSURANCE COMPANY» PrJSC at uaAifr grade

05.04.2018
Rating agency IBI-Rating informs on affirming of the financial strength rating of «SALAMANDRA-UKRAINE «INSURANCE COMPANY» PrJSC at uaAifr grade, with a «negative» outlook. The rating is saved in the Checklist.

«SALAMANDRA-UKRAINE «INSURANCE COMPANY» PrJSC has been operating in the insurance market since March 1995. The Insurer carries out its activities on the basis of 21 licenses, namely, 8 compulsory types and 13 voluntary types of insurance. The regional network is represented by the Head Office in Poltava city, as well as 15 territorial subdivisions (branches, representative offices, points of sale) in 15 regions of Ukraine. Following the results of 9 months of 2017, «SALAMANDRA-UKRAINE «INSURANCE COMPANY» PrJSC occupied the following positions among more than 250 participants in the non-life insurance market: assets - 32th place; equity capital - 26th place; gross insurance payments - 36th place; gross insurance payments - 34th; insurance reserves - 38th place.

According to the results of 2017, the Insurer was attracted insurance premiums for the total amount of almost UAH 85 million, which is one third one inferior to the indicator of 2016 and is due to a decrease in revenues from property insurance contracts and fire risks; in turn, last year there was an increase in premiums for the provision of health insurance and MTPL. Following the results of the previous year, the Insurer made insurance payments totaling almost UAH 39 million (+ 10% compared to 2016). According to the results of the previous year, the profit from the main activity of the Insurer amounted to UAH 1 million (against the loss of UAH 1.5 million in 2016). In turn, the net profit of «SALAMANDRA-UKRAINE «INSURANCE COMPANY» PrJSC for the indicated period amounted to UAH 144.6 thousand (UAH 243.6 thousand in 2016).

The affirming of the financial strength rating is due to an increase in the amount of insurance premiums earned; improving the structure of the balance sheet and reducing the sensitivity of securities transactions; sufficient specific weight of highly liquid assets in asset categories that represent insurance reserves. Solvency ratios are maintained at a high level – as at the 01/01/2018, the actual solvency margin exceeded the regulatory norm more than 3,5-fold. In turn, the Rating Agency notes the decrease in equity as a result of revaluation of the share of assets, low diversification of initial reinsurance operations, as well as the preservation of a difficult situation in the economy that limits the financial capacity of the population and enterprises of the real sector. The preservation of the rating in the Checklist is due to the increase in the sensitivity of the insurance company to prudential risks, taking into account the adoption of orders by the National Financial Services Commission for the cancellation of licenses for the performance of insurance activities (currently disputed by the insurer in court).

In order to conduct the analytical research the materials provided by «SALAMANDRA-UKRAINE «INSURANCE COMPANY» PrJSC have been used, including: annual financial statements for 2015-2017, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.

Finance department
For more information please contact:
Press service of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua