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IBI-Rating has affirmed the credit rating of PJSC «NJSIC «ORANTA» at uaA– grade
26.11.2018
Rating agency IBI-Rating informs on affirming of the credit rating of PJSC «NJSIC «ORANTA» at uaA– grade, with a «stable» outlook.
PJSC «NJSIC «ORANTA» is the legal successor of Ukrgosstrakh, which 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 01.10.2018, 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 6 months by 2018, PJSC «NJSIC «ORANTA» occupied such positions among more than 250 participants of the insurance market (non-life): assets and insurance premiums - 12th place; own capital - 17th place; insurance reserves - 8th place; made payments - 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. The growth of the insurance payments earned on the background of a partial reduction in the level of payments in the second and third quarters of 2018 contributed to the improvement of the combined indicator of loss-making (up to 99.2%) and the reduction of the negative financial result of the current year to UAH 9.1 million.
The affirming of the long-term credit rating grade is due to the strong market positions, the presence of well-developed sales channels, which contributes to the stable dynamics of insurance payments, sufficient indicators of solvency (as of 01.10.2018, the actual solvency margin exceeded the regulatory reserve by almost twice times), as well as sufficient levels of diversification and quality of assets, which represented the insurance reserves. In turn, IBI-Rating notes a significant amount of losses of previous years, reducing its capitalization level, high value of the combined loss ratio, instability of the operating environment, the variability of the regulatory field, as well as the sensitivity of the company's revenue base to changing the situation in the real sector.
In order to conduct the analytical research the materials provided by PJSC «NJSIC «ORANTA» have been used, including: the annual financial statements for 2015-2017 and 9 months of 2018, 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
press(at)ibi.com.ua
PJSC «NJSIC «ORANTA» is the legal successor of Ukrgosstrakh, which 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 01.10.2018, 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 6 months by 2018, PJSC «NJSIC «ORANTA» occupied such positions among more than 250 participants of the insurance market (non-life): assets and insurance premiums - 12th place; own capital - 17th place; insurance reserves - 8th place; made payments - 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. The growth of the insurance payments earned on the background of a partial reduction in the level of payments in the second and third quarters of 2018 contributed to the improvement of the combined indicator of loss-making (up to 99.2%) and the reduction of the negative financial result of the current year to UAH 9.1 million.
The affirming of the long-term credit rating grade is due to the strong market positions, the presence of well-developed sales channels, which contributes to the stable dynamics of insurance payments, sufficient indicators of solvency (as of 01.10.2018, the actual solvency margin exceeded the regulatory reserve by almost twice times), as well as sufficient levels of diversification and quality of assets, which represented the insurance reserves. In turn, IBI-Rating notes a significant amount of losses of previous years, reducing its capitalization level, high value of the combined loss ratio, instability of the operating environment, the variability of the regulatory field, as well as the sensitivity of the company's revenue base to changing the situation in the real sector.
In order to conduct the analytical research the materials provided by PJSC «NJSIC «ORANTA» have been used, including: the annual financial statements for 2015-2017 and 9 months of 2018, 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
press(at)ibi.com.ua