IBI-Rating has upgraded the credit rating of PJSC «NJSIC «ORANTA» to uaA– grade

IBI-Rating informs on upgrading of the credit rating of PJSC «NJSIC «ORANTA» to uaA– grade, with changing of the outlook to «stable».

The upgrading of the credit rating grade of the Insurer 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 01.10.2017, the actual solvency margin exceeded the regulatory reserve by 2.5 times), as well as increased levels of diversification 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, as well as persisting difficult situation in the economy limiting the financial capacity of households and enterprises of the real sector.

PJSC «NJSIC «ORANTA» is the legal successor of Ukrgosstrakh, 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 01.10.2017, 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 I half-year of 2017 PJSC «NJSIC «ORANTA» occupied such positions among more than 264 participants of the insurance market (non-life): assets - 13th place; own capital - 14th place; insurance premiums and payments - 12th place; insurance reserves - 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. Net loss of the insurer in January-September 2017 amounted to UAH 3 mln.

In order to conduct the analytical research the materials provided by PJSC «NJSIC «ORANTA» have been used, including: the annual financial statements for 2014-2016 and 9 months of 2017, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.

Financial department
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