IBI-Rating has affirmed the credit rating of Joint Stock Insurance Company «OMEGA» at uaBBB+ grade

Rating agency IBI-Rating informs on affirming of the credit rating of the Joint Stock Insurance Company «OMEGA» at uaBBB+ grade, with a «stable» outlook.

Private Joint Stock Company «Joint Stock Insurance Company «OMEGA» has been working in the insurance market since 1994. The insurer carries out its activities on the basis of 24 licenses - 7 obligatory and 17 voluntary types of insurance. The head office of the company is located in the Kyiv city at Observatorna Street, 17A. In the analyzed period, optimization of the regional network was carried out - more than 10 regional subdivisions were closed. In turn, active work is underway to open new points of sale of insurance services in order to diversify the insurance portfolio and increase the share of other types of insurance than the MOTPL (according to the new development strategy of company).

According to the results of the first half of 2018 JSIC «OMEGA» has attracted insurance payments totaling UAH 48.8 million, which is in 11% less than in the same period of the previous year, due mainly to a partial reduction in the volume of premiums under the policies of MOTPL. However, the main direction of revenues from insurance payments is the transport portfolio (MOTPL and CASCO), which accounts for more than 2/3 of all revenues. The share of health insurance, which as of January-June this year amounted to almost 14% of the portfolio, is gradually increasing. According to the results of January-June 2018 JSIC «OMEGA» made insurance payments totaling UAH 33.6 million, which is in 43% higher than payments for the same period previous year. The net financial result of the insurer in the first half of the current year was negative and amounted to (-) UAH 2.4 million.

The affirmed credit rating grade of the insurer is due to its high capitalization ratios, acceptable structure and diversification of assets, which representing insurance reserves, as well as high solvency ratios. As of the end of the first half of 2018, the actual solvency margin exceeded the regulatory norm by more than 20 times. In turn, the Rating agency draws attention to the significant amount of investments in securities with limited liquidity, which increases the vulnerability to market risk and causes significant fluctuations in the financial result; unprofitability of its core activities; high value of the combined loss ratio; the instability of the operating environment, the variability of the regulatory field, as well as the sensitivity of the company's revenue base to changing the situation in the real sector.

In order to conduct the analytical research the materials provided by JSIC «OMEGA» have been used, including: annual financial statements for 2015-2017 and 6 months of 2018, 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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