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IBI-Rating has affirmed the financial strength rating of «SALAMANDRA-UKRAINE» INSURANCE COMPANY» PrJSC at uaAifr grade
29.09.2017
Rating agency IBI-Rating informs on affirming of the financial strength rating of «SALAMANDRA-UKRAINE» INSURANCE COMPANY» PrJSC at uaAifr grade, with a «negative» outlook. The rating is saved in the Checklist.
«SALAMANDRA-UKRAINE» INSURANCE COMPANY» PrJSC has been operating in the insurance market since March 1995. The Insurer exercises its activities on the basis of 22 licenses, namely, 9 compulsory types and 13 voluntary types of insurance. The regional network is represented by the Head Office in Poltava city, as well as 15 territorial subdivisions (branches, representative offices, points of sale) in 15 regions of Ukraine. Following the results of the first quarter of 2017, the company occupied the following positions among more than 260 participants in the non-life insurance market: assets and gross insurance premiums - 33th place; equity capital - 28th place; gross insurance payments - 35th place; insurance reserves - 39th place. According to Motor (Transport) Insurance Bureau of Ukraine, following the results of the 2nd quarter of this current year, «SALAMANDRA-UKRAINE» INSURANCE COMPANY» PrJSC became a member of 30 insurers-members of MTIBU, with high marks on such indicators of activity as the general assessment of the insurer's activity, quality the settlement of damages, as well as the level of complaints from victims and insurers. Also during this period the Сompany took the second place among market participants on the average term of damages settlement under the contracts of the compulsory insurance of civil liability of owners of land vehicles.
According to the results of the first half of 2017, the Insurer was attracted insurance premiums for the total amount of almost UAH 50 million, which is 15% less than the same period previous year. In turn, during January-June of this year the Company made insurance payments totaling UAH 22.8 million, which is 14.3% more than during the same period previous year and is mainly due to an increase in the loss-making amount of auto insurance. Following the results of the first half of the current year, the profit from the main activity amounted to UAH 1.3 million (against the loss of UAH 1.5 million for the same period of the previous year). The net profit of «SALAMANDRA-UKRAINE» INSURANCE COMPANY» PrJSC for the indicated period amounted to UAH 29.7 thousand.
The affirmed financial strength rating is due to growth in the volume of earned insurance premiums, as well as a sufficient proportion of highly liquid assets in the categories of assets, which represent insurance reserves. Solvency ratios were preserved at a high level, – as at the 01/07/2017, the actual solvency margin exceeded the regulatory norm more than 8-fold. In turn, Rating agency notes high share of outgoing reinsurance along with a low diversification of operations by major reinsurers, unprofitability of the company’s core activities and high value of the combined loss ratio, as well as preservation of the difficult situation in the economy limiting the financial capacity of the population and enterprises of the real sector and adversely affecting the level of confidence in financial institutions. The preservation of the rating in the Checklist is due to the increase in the sensitivity of the insurance company to prudential risks, taking into account the adoption of orders by the National Financial Services Commission for the cancellation of licenses for the performance of insurance activities (currently disputed by the insurer in court).
In order to conduct the analytical research the materials provided by «SALAMANDRA-UKRAINE» INSURANCE COMPANY» PrJSC have been used, including: annual financial statements for 2014-2016 and the first half of 2017, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.
Finance department
For more information please contact:
Press service of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua
«SALAMANDRA-UKRAINE» INSURANCE COMPANY» PrJSC has been operating in the insurance market since March 1995. The Insurer exercises its activities on the basis of 22 licenses, namely, 9 compulsory types and 13 voluntary types of insurance. The regional network is represented by the Head Office in Poltava city, as well as 15 territorial subdivisions (branches, representative offices, points of sale) in 15 regions of Ukraine. Following the results of the first quarter of 2017, the company occupied the following positions among more than 260 participants in the non-life insurance market: assets and gross insurance premiums - 33th place; equity capital - 28th place; gross insurance payments - 35th place; insurance reserves - 39th place. According to Motor (Transport) Insurance Bureau of Ukraine, following the results of the 2nd quarter of this current year, «SALAMANDRA-UKRAINE» INSURANCE COMPANY» PrJSC became a member of 30 insurers-members of MTIBU, with high marks on such indicators of activity as the general assessment of the insurer's activity, quality the settlement of damages, as well as the level of complaints from victims and insurers. Also during this period the Сompany took the second place among market participants on the average term of damages settlement under the contracts of the compulsory insurance of civil liability of owners of land vehicles.
According to the results of the first half of 2017, the Insurer was attracted insurance premiums for the total amount of almost UAH 50 million, which is 15% less than the same period previous year. In turn, during January-June of this year the Company made insurance payments totaling UAH 22.8 million, which is 14.3% more than during the same period previous year and is mainly due to an increase in the loss-making amount of auto insurance. Following the results of the first half of the current year, the profit from the main activity amounted to UAH 1.3 million (against the loss of UAH 1.5 million for the same period of the previous year). The net profit of «SALAMANDRA-UKRAINE» INSURANCE COMPANY» PrJSC for the indicated period amounted to UAH 29.7 thousand.
The affirmed financial strength rating is due to growth in the volume of earned insurance premiums, as well as a sufficient proportion of highly liquid assets in the categories of assets, which represent insurance reserves. Solvency ratios were preserved at a high level, – as at the 01/07/2017, the actual solvency margin exceeded the regulatory norm more than 8-fold. In turn, Rating agency notes high share of outgoing reinsurance along with a low diversification of operations by major reinsurers, unprofitability of the company’s core activities and high value of the combined loss ratio, as well as preservation of the difficult situation in the economy limiting the financial capacity of the population and enterprises of the real sector and adversely affecting the level of confidence in financial institutions. The preservation of the rating in the Checklist is due to the increase in the sensitivity of the insurance company to prudential risks, taking into account the adoption of orders by the National Financial Services Commission for the cancellation of licenses for the performance of insurance activities (currently disputed by the insurer in court).
In order to conduct the analytical research the materials provided by «SALAMANDRA-UKRAINE» INSURANCE COMPANY» PrJSC have been used, including: annual financial statements for 2014-2016 and the first half of 2017, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.
Finance department
For more information please contact:
Press service of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua