IBI-Rating has affirmed the financial strength rating of PJSC «NJSIC «ORANTA» at uaAA–ifr grade

Rating agency IBI-Rating informs on affirming of the financial strength rating of PJSC «NJSIC «ORANTA» at uaAA–ifr grade, with a «stable» outlook.

PJSC «NJSIC «ORANTA» is the legal successor of Ukrgosstrakh, which 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 01.10.2018, 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 by Q1of 2019, PJSC «NJSIC «ORANTA» occupied such positions among more than 230 participants of the insurance market (non-life): assets - 12th place; own capital - 17th place; insurance premiums – 15th place; insurance reserves and made payments - 10th 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. The reduction of earned insurance payments on the background of increasing the loss-making of auto insurance in the analyzed period affected the increase in the value of the combined indicator of loss-making, and also caused the negative financial result of the insurance company in the results by 2018 and Q1 of 2019 - the loss of PJSC «NJSIC «ORANTA» for the specified periods amounted to UAH 32 million and UAH 40 million in accordance.

The affirmed grade of the financial strength rating of PJSC «NJSIC «ORANTA» is due to the company's entry into the number of the largest participants in the insurance market of Ukraine, a sufficient level of highly liquid assets in the categories of assets, which represent insurance reserves, high solvency ratios, as well as stable dynamics of insurance premiums attracted. In turn, Rating agency notes low diversification of the insurance portfolio, a high proportion of the reserves of declared but not paid losses, in general insurance reserves, 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 PJSC «NJSIC «ORANTA» have been used, including: the annual financial statements for 2016-2018 and 3 months of 2019, 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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