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IBI-Rating has affirmed the financial strength rating of «National joint stock insurance company «ORANTA» PJSC at uaAA–ifr grade

12.01.2017
Rating agency IBI-Rating informs on affirming of the financial strength rating of «National joint stock insurance company «ORANTA» PJSC at uaAA–ifr grade, with a «developing» outlook.

The affirmed grade of the financial strength rating of «National joint stock insurance company «ORANTA» PJSC 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.

The Agency also 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, high proportion of reserves of the losses claimed but not paid out in the total insurance reserves, as well as high value of the combined loss ratio. At the same time, the Rating agency notes sufficient solvency indicators (as at 01.10.2016, the actual solvency reserve exceeded the required one by 2.3 times), as well as improved performance and profitable activities – by results of 9 months 2016, the Insurer’s net profit amounted to UAH 28.6 mln.

IBI-Rating currently sees no factors that may lead to upgrading of the financial strength rating of the insurance company in the short term. Downgrading of the financial strength rating is possible in the event of delicne in solvency (liquidity) of the insurance company, increased dependence of the Insurer’s activity on investments in securities of certain issuers, increase in operating expenses and increased combined loss ratio, and also, taking into account an impact of adverse factors of development of the insurance market of Ukraine, which may lead to deterioration of the company’s activities and its financial performance.

In order to conduct the analytical research the materials provided by «National joint stock insurance company «ORANTA» PJSC have been used, including: the annual financial statements for 2013-2015 and 9 months of 2016 , 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
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