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IBI-Rating has affirmed the financial strength rating of PJSC «NJSIC «ORANTA» at uaAA–ifr grade
01.06.2020
Rating agency IBI-Rating informs on affirming of the financial strength rating of PJSC «NJSIC «ORANTA» at uaAA–ifr grade, the rating outlook is «evolving».
PJSC «NJSIC «ORANTA» is the legal successor of Ukrderzhstrakh, which founded on November 25, 1921. In 1993, the Ukrderzhstrakh was transformed into the Public Joint-Stock Company «National Joint-Stock Insurance Company «Oranta», the founder of which, on the part of the state, was the State Property Fund of Ukraine. In 2007, the State Property Fund of Ukraine sold to the investor the last block of state-owned shares. 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. Following the results by 2019, PJSC «NJSIC «ORANTA» occupied such positions among more than 200 participants of the insurance market (non-life): by own capital - 15th place; by amount of attracted premiums - 11th place, as well as 10th position by assets, insurance reserves, and made insurance claim payment. Besides, PJSC «NJSIC «ORANTA» stably ranks a leading position in the amount of insurance premiums for compulsory insurance of civil liability of owners of land vehicles. The financial result of the insurance company had a positive value - net profit in 2019 amounted to UAH 240 thousand. In turn, the net profit in January-March 2020 amounted to almost UAH 35 million, which was facilitated, in particular, by a higher growth rate of earned payments than the growth of insurance payments, saving costs associated with payment services insurance agents and others.
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 the insurance reserves are represent, high solvency ratios, as well as stable dynamics of insurance premiums attracted. In turn, takes place 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. The «evolving» rating outlook is due to uncertainty about the impact on the financial condition of the insurance company of the expected significant slowdown in business activity due to the deteriorating epidemiological situation in the country in the Q1 2020 and imposed economic and administrative restrictions on economic entities and individuals.
In order to conduct the analytical research the materials provided by PJSC «NJSIC «ORANTA» have been used, including: the annual financial statements for 2017-2019 and 3 months by 2020, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.
Financial department
For additional information please contact:
Press office of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua
PJSC «NJSIC «ORANTA» is the legal successor of Ukrderzhstrakh, which founded on November 25, 1921. In 1993, the Ukrderzhstrakh was transformed into the Public Joint-Stock Company «National Joint-Stock Insurance Company «Oranta», the founder of which, on the part of the state, was the State Property Fund of Ukraine. In 2007, the State Property Fund of Ukraine sold to the investor the last block of state-owned shares. 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. Following the results by 2019, PJSC «NJSIC «ORANTA» occupied such positions among more than 200 participants of the insurance market (non-life): by own capital - 15th place; by amount of attracted premiums - 11th place, as well as 10th position by assets, insurance reserves, and made insurance claim payment. Besides, PJSC «NJSIC «ORANTA» stably ranks a leading position in the amount of insurance premiums for compulsory insurance of civil liability of owners of land vehicles. The financial result of the insurance company had a positive value - net profit in 2019 amounted to UAH 240 thousand. In turn, the net profit in January-March 2020 amounted to almost UAH 35 million, which was facilitated, in particular, by a higher growth rate of earned payments than the growth of insurance payments, saving costs associated with payment services insurance agents and others.
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 the insurance reserves are represent, high solvency ratios, as well as stable dynamics of insurance premiums attracted. In turn, takes place 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. The «evolving» rating outlook is due to uncertainty about the impact on the financial condition of the insurance company of the expected significant slowdown in business activity due to the deteriorating epidemiological situation in the country in the Q1 2020 and imposed economic and administrative restrictions on economic entities and individuals.
In order to conduct the analytical research the materials provided by PJSC «NJSIC «ORANTA» have been used, including: the annual financial statements for 2017-2019 and 3 months by 2020, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.
Financial department
For additional information please contact:
Press office of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua