IBI-Rating has affirmed the credit rating of «A» series bonds of PrJSC «IC «SALAMANDRA» at uaBBB grade, the outlook is «evolving»

Rating agency IBI-Rating informs on affirming of the credit rating of «A» series bonds of PrJSC «IC «SALAMANDRA» at uaBBB 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.

Decision on the issue of registered interest-bearing unsecured «A» series bonds for the amount UAH 100 million was adopted on July 16, 2011 at the general meeting of shareholders of the insurance company. The maturity of the bonds is July 28, 2021. The goal of the bond issue is to expand the territorial divisions, the agent network, implementation of corporate IT-systems, develop and implement of the new insurance products. As of the beginning of July 2020, the bonds were placed in the amount of UAH 25 million.

The affirming of the credit rating of bonds is due to high indicators of capitalization and solvency (as of July 1, 2020 the actual stock of solvency exceeded the normative almost by 4.5 times); acceptable diversification of the insurance portfolio and the assets, which represent insurance reserves; sufficient performance and profitability over the last few years. In turn, the Rating Agency indicates increase in debt burden; dependence of the financial result on securities transactions; 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 introduction of economic and administrative restrictions on 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, the necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.

Financial department
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