IBI-Rating has affirmed the financial strength rating of JSIC «INGO» at uaAAifr grade

Rating agency IBI-Rating informs on affirming of the financial strength rating of JSIC «INGO» at uaAAifr grade, the rating outlook is «evolving».

JSIC «INGO» has been operating in the insurance market for over 26 years, providing of insurance services by 28 types (18 voluntary and 10 compulsory). In February 2017, according to the order of The National Commission for State Regulation of Financial Services Markets, the non-bank financial group «INGO» was registered - the financial group includes JSIC «INGO» and PJSIC «INGO Life». The ultimate beneficiary is the citizen of Ukraine – Mr. Oleksandr Yaroslavskyi. The company demonstrates a high rate of development, as evidenced by the position of JSIC «INGO» among more than 200 participants of the Ukrainian insurance market (non-life). So, according to the results by 2019 the insurer took the 2nd place in terms of equity, 5th place in terms of assets, insurance payments made, by the size of insurance reserves, as well 6th place - in terms by amount of raised insurance premiums.

JSIC «INGO» has an extensive regional infrastructure that allows to sell insurance services and serve customers in all oblasts of Ukraine. In 2019 JSIC «INGO» gross premiums received exceeded UAH 1.5 billion, that by a quarterly more than in 2018. Premiums by Q1 of this year amounted to UAH 94.2 million (against UAH 81.4 million in the same period of the previous year). The company's insurance portfolio is quite balanced and formed mainly by transport insurance contributions (motor hull, MOTPL, Green Card) - about 40% of all premiums; health insurance (one-third of the portfolio) and property insurance (8% of revenues).

The Rating agency notes the high quality of outgoing reinsurance operations: almost 85% of reinsurance payments are made by foreign insurance companies, most of which have a high credit rating determined by international rating agencies. Liquidity ratios indicate the high ability of JSIC «INGO» to pay for its commitments, including the concluded insurance contracts. The increase in earned premiums and the receiving of significant income from financial activities contributed to net profit for the previous year and by Q1 of 2020 - net profit for these periods amounted to UAH 40.3 million and UAH 21.1 million, respectively.

The affirmed rating grade of the financial strength rating of JSIC «INGO» is due to the company becoming one of the largest participants in the insurance market of Ukraine, the balance of the insurance portfolio and the stable dynamics of earned insurance premiums. It should also be noted as acceptable indicators of capitalization and efficiency, as well as high quality and sufficient diversification of assets, which represent insurance reserves. In turn, the Rating Agency notes a significant share of the reserve of declared but not paid losses (a large amount of which falls to the share of reinsurers), the instability of the operating environment, the variability of the regulatory field, and the sensitivity of the company's revenue base to changes in the real sector. The «evolving» rating outlook is due to uncertainty about the impact on the financial condition of the insurance company by expected significant slowdown in business activity due to the deteriorating epidemiological situation in the country by Q1 2020 and imposed economic and administrative restrictions to economic entities and individuals.

In order to carry out the analytical research the materials provided by PJSIC «INGO Ukraine» have been used, including: financial statements by 2017-2019 and Q1 of 2019, 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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