IBI-Rating has affirmed the credit rating of «UPSC» PrJSC at uaAA grade

Rating agency IBI-Rating informs on affirming of the long-term credit rating of «UPSC» PrJSC at uaAA grade, the rating outlook is «evolving».

«UPSC» PrJSC has been working in the insurance market since 1992. The majority shareholder and Chairman of the supervisory board is Mr Mykhailov Oleksandr. The insurer is a member of the Motor (Transport) Insurance Bureau of Ukraine and has 60 licenses for carrying out insurance business (21 types of voluntary insurance, 39 types of compulsory insurance). Despite the strong competition in the Ukrainian insurance market, «UPSC» PrJSC demonstrates a relatively stable position among more than 200 participants of the insurance market (non-life), entering in the TOP 20 market leaders in terms of key indicators: the amount of insurance reserves, assets, equity, attracted premiums and payments made. In addition, for a long time, «UPSC» PrJSC occupies the 3rd position in terms of attracted premiums under MOTPL. The insurer has a well-developed network, which is represented in all oblasts of Ukraine. Additionally, the company is represented by about 1000 points of sale of insurance products and customer service centers.

The positive factors of the insurer's activity should include a substantial stock of assets that may be represented by insurance reserves. Moreover, the structure of assets, which are formed by insurance reserves, is assessed as good. Additionally, it should be noted that the diversification of bank deposits in the context of banking institutions (including state institutions) is sufficient, indicated banks have determined the credit ratings that correspond to the high investment level of the national rating grade.The stable increase in earned insurance premiums, as well as the increase of income from financial activities against the background of less than last year, the amount of contributions to reserves, contributed to improving the efficiency of «UPSC» PrJSC and, consequently, to obtain a positive net financial result. Thus, in January-June 2020, the combined loss ratio decreased to an acceptable value - 90% (compared to 103% in the previous year), and the net profit of the institution amounted to UAH 11.7 million (against a loss of UAH 58.4 million in 2019).

The affirming of the long-term credit rating is due to the company's entry into the list of the largest participants in the insurance market of Ukraine, stable dynamics of earned insurance premiums, acceptable diversification of the insurance portfolio, high quality and sufficient diversification of assets represented by insurance reserves. In turn, the Rating Agency notes the increased sensitivity of the financial system of Ukraine to operational and other risks, due to the deteriorating of the epidemiological situation in the country, as well as the imposed of economic and administrative restrictions to entities and the population. At the same time, should be noted the good quality of reinsurance operations risk, high-quality resolution of insurance claims, broad client base, as well as well-developed sales channels, which contributes to the stable dynamics of insurance payments.

In order to conduct the analytical research, the materials provided by «UPSC» PrJSC, have been used, including: annual financial statements for 2017-2019 and 6 months of 2020, 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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