IBI-Rating has affirmed the credit rating of «SALAMANDRA-UKRAINE «INSURANCE COMPANY» PrJSC at uaВВВ grade

Rating agency IBI-Rating informs on affirming of the credit rating of «SALAMANDRA-UKRAINE «INSURANCE COMPANY» PrJSC at uaВВВ 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 oblasts of Ukraine. Following the results of 2017, «SALAMANDRA-UKRAINE «INSURANCE COMPANY» PrJSC occupied the next positions among more than 260 participants in the non-life insurance market: assets - 52th place; equity capital - 53th place; gross insurance premiums - 43th place; gross insurance payments - 37th; insurance reserves - 45th place.

According to the results of January-June 2018, the Insurer was attracted insurance premiums for the total amount of almost UAH 40.6 million, which by 18% inferior to the indicator of the same period of the previous year and is due to a decrease in revenues from property insurance contracts and fire risks. In turn, this year there was a noticeable increase in revenues for MTPL policies and credit insurance agreements. According to the results of the first half of this year, the insurer made insurance payments totaling more than UAH in 19 million (-16% compared to the same period of the previous year). Taking into account the increase in the share of motor insurance in the company's portfolio, the gross salary payments of «SALAMANDRA-UKRAINE «INSURANCE COMPANY» PrJSC in January-June 2018 amounted to 47%.

The company's profit by results of the first half of 2018 of the main activity amounted to UAH 1.3 million. In turn, the net profit of «SALAMANDRA-UKRAINE «INSURANCE COMPANY» PrJSC for the specified period amounted to UAH 69.2 thousand (UAH 144.6 thousand for 2017).

The affirming of the credit rating is due to sufficient capitalization, acceptable diversification of assets, which represent insurance reserves, as well as sufficient solvency indicators – as at the 01/07/2018, the actual solvency margin exceeded the regulatory norm more than 4 times. In turn, Rating agency notes a low diversification of the insurance portfolio by type of insurance, the sensitivity of the insurance company to prudential risks, high value of the combined loss ratio, as well as the instability of the operating environment, the variability of the regulatory field and the sensitivity of the company's revenue base to the changing situation in the real sector.

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 and the first half of 2018, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.

Finance department
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