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

Rating agency IBI-Rating informs on affirming of the credit rating of PJSC «NJSIC «ORANTA» at uaA– 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. 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 first half of 2019, PJSC «NJSIC «ORANTA» occupied such positions among more than 200 participants of the insurance market (non-life): own capital - 16th place and 11th place by assets, insurance reserves, attracted insurance premiums and made insurance claim payment. 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. Taking into account the increase of the earned insurance payments, the value of the combined indicator of loss-making in the analyzed period improved to 95% (against 102.5% in 2018), and the financial result of the insurance company gained positive values - the net profit by first 9 months of 2019 amounted to UAH 5.3 million.

The affirming of the long-term credit rating grade is due to the strong market positions, the presence of well-developed sales channels, which contributes to the stable dynamics of insurance payments and as well as sufficient solvency indicators. Additionally, it should be noted as sufficient levels of diversification and quality of assets, which represented the insurance reserves as well as improving performance indicators and profitable activities for the 9 months of 2019. In turn, IBI-Rating notes a significant amount of losses of previous years, reducing its capitalization level; significant operating expenses and high concentration of insurance portfolio by type of insurance, 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 9 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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