IBI-Rating has determined the financial strength rating of "KHORTICYA" ALC" IC" at uaBBBifr grade

Rating agency IBI-Rating informs on determining of the financial strength rating of "KHORTICYA" ALC" IC" at uaBBBifr grade, with a «stable» outlook.

The determined grade of the financial strength rating of "KHORTICYA" ALC" IC" is due to acceptable capitalization indicators, growth of attracted insurance premiums, a significant share of highly liquid assets in the form of bank deposits, and sufficient diversification of assets that represent insurance reserves. The Agency also notes weak market positions and low level of development of sales channels, a high concentration of insurance premiums and payments by counterparties, a significant amount of investments in securities, as well as a considerable amount of income and expenses associated with securities transactions, which increases vulnerability to market risk.

Additional Liability Company "Insurance Company "KHORTICYA" operates at the insurance market since 2005; The company began active operations in the Q1 2016 after the change of owners. As of the beginning of April 2017, the participants of "KHORTICYA" ALC" IC" are: Vega Systems LLC (Kiev) - 99.98% of equity participation, and two individuals resident of Ukraine (0.01% of capital). The owner of Vega Systems LLC and, accordingly, the final beneficiary is Chemerenko Andrey Viktorovich.

According to the results of 2016 and the Q1 of 2017, "KHORTICYA" ALC" IC" received insurance payments for the total amount of UAH 450.2 mln and UAH 179.2 mln respectively. The main types of insurance, providing more than 70% of all revenues, are: financial risk insurance, insurance against fire risks and property insurance. According to the results of 2016 and the 1st quarter of 2017, the amount of insurance payments made was UAH 333.5 mln and UAH 198.6 mln accordingly. The activity of the insurer is profitable - the net profit in 2016 and the first quarter of 2017, respectively, amounted to UAH 2.9 mln and UAH 37.9 thousand.

In order to conduct out the analytical research the materials provided by "KHORTICYA" ALC "IC" were used, including: the financial statements for 2014-2016 and Q1 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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