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IBI-Rating has affirmed the financial strength rating of PrJSC «IC «SALAMANDRA» at uaА–ifr grade, the outlook is «evolving»

09.09.2020
Rating agency IBI-Rating informs on affirming of the financial strength rating of PrJSC «IC «SALAMANDRA» at uaА–ifr grade, the outlook is «evolving».

PrJSC «IC «SALAMANDRA» has been operating in the insurance market since 1994 and is the legal successor of PrJSC «IC «DOM STRAHOVANIE» and PrJSC «IC «DNIPRINMED». At the beginning of 2020, National Commission for State Regulation of Financial Services Markets provided permission to PJSC «ZNVKIF «Frontline» (Kyiv) for concentrate 99.8% of shares in PrJSC «IC «SALAMANDRA», as well as 81.16% of shares in IC «Van Klik» (formerly «Salamandra Ukraine»). Both insurers will soon join the non-bank financial group «Salamandra». The assets of PJSC «ZNVKIF «Frontline» are managed by AMC «Opika-Capital». The final beneficiary of PJSC «ZNVKIF «Frontline» is Mr Yuriy Yavtushenko. The non-bank financial group «Salamandra» besides insurance companies will include assistance company «Finance Line», Medical Center «Salamandra» (Zaporizhzhia), factoring company «Marx.Capital», Assistance Company MX CONSULTING».

The insurance company is a member of the Motor (Transport) Insurance Bureau of Ukraine and carries out its activities on the basis of 24 licenses - 8 compulsory types and 16 voluntary types of insurance. According to the results of the first half of 2020, PrJSC «IC «SALAMANDRA» attracted insurance payments totaling UAH 51.7 million, which is 13% more than in the same period of the previous year and is mainly due to increased revenues from insurance policies for land transport, cargo and luggage and other property. Accordingly, in January-June this year, the most important components of the insurance portfolio include transport insurance (CASCO and MOTPL - 53% together) and health insurance (29%). In January-June 2020, PrJSC «IC «SALAMANDRA» made insurance payments in the amount of UAH 23.6 million, which is 1/3 higher than in the same period of the last year and is mainly due to an increase of unprofitability level of transport insurance. The main activity of the insurer remains profitable; net financial result is also positive - the company's net profit for the first half of 2020 amounted to UAH 181.2 thousand.

The affirming of the financial strength rating of PrJSC «IC «SALAMANDRA» is due to the sufficient share of highly liquid assets in the categories of assets represented by insurance reserves; high indicators of capitalization and solvency; acceptable diversification of the insurance portfolio and sufficient performance indicators. In turn, the Rating agency notes low diversification of initial reinsurance operations; increase in debt burden; strengthening the sensitivity of the financial system of Ukraine to operational risk due to the deterioration of the epidemiological situation in the country, as well as the imposed of economic and administrative restrictions on economic entities and the population.

In order to conduct the analytical research, the materials provided by PrJSC «IC «SALAMANDRA» have been used, including: annual financial statements for 2017-2019 years and the first half 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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