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IBI-Rating has affirmed the financial strength rating of JSIC «INGO» at uaAAifr grade

07.04.2023
Rating agency IBI-Rating informs on affirming of the financial strength rating of JSIC «INGO» at uaAAifr grade, the rating outlook is «evolving». The rating has been kept on CreditWatch List due to the martial law imposed in connection with the invasion of Ukraine by russian troops, which has a significant negative impact on the country's economic condition and financial stability.

JSIC «INGO» has been operating in the insurance market for over 28 years, providing services in 29 types of insurance (18 types of voluntary and 11 types of compulsory insurance). In February 2017, according to the order of the National Commission for State Regulation of Financial Services, the non-banking financial group INGO was registered - the financial group includes JSIC «INGO» and PJSIC «INGO Life». The ultimate beneficiary of the company is a citizen of Ukraine - Oleksandr Yaroslavskyi. The company demonstrates a high rate of development, as evidenced by the position of JSIC «INGO» among more than 120 participants in the Ukrainian insurance market (non-life). Thus, according to the results of 2022, the insurer ranked 4th in terms of equity, 7th in terms of assets and net written premiums, 8th in terms of insurance reserves, as well as 5th in terms of insurance claims paid.

JSIC «INGO» has an extensive regional infrastructure that allows it to sell insurance services and serve customers in all regions of Ukraine. The volume of gross insurance premiums received by JSIC «INGO» amounted to UAH 1.8 billion in 2022, which is 11% less than in 2021 and is due to the deterioration in the operating environment against the background of the introduction of martial law in the country due to the aggression of the Russian Federation. The company's insurance portfolio is quite balanced and is formed mainly by premiums for transport insurance (CASCO, MOTPL, «Green Card» insurance) – about 48% of all premiums; health insurance (24% of portfolio), property and cargo insurance (7% and 6%, respectively).

Rating agency notes the high quality of outgoing reinsurance operations: more than 93% of reinsurance payments are carried out with foreign insurance companies, most of which have high credit ratings assigned by international rating agencies. Liquidity indicators demonstrate the high ability of JSIC «INGO» to promptly and fully pay off its obligations, including those under insurance contracts. The company consistently receives high performance ratings from the Motor (Transport) Insurance Bureau of Ukraine.

Over the past few years, the earned insurance premiums of JSIC «INGO» have demonstrated positive dynamics with an upward trend on a quarterly basis. In turn, the military escalation of RF against Ukraine caused a slowdown in the first half of 2022. However, according to the results of 2022, earned insurance payments amounted to UAH 1.51 billion (+UAH 42 million compared to 2021), which accounts for about 71% of the Insurer's total income. The increase in earned premiums and significant income from financial activities contributed to a positive financial result in 2022 - net profit amounted to UAH 159 million, an increase of UAH 71.3 million or 81% compared with 2021.

The affirmed financial strength rating grade of the JSIC «INGO» with outlook revision is due to: the company’s leading position in the insurance market of Ukraine, the balance of the insurance portfolio and stable earned insurance premiums dynamics. Acceptable capitalization and performance indicators, as well as high quality and sufficient diversification of assets, which represent insurance reserves, should also be noted. In turn, the Rating agency notes a significant amount of reserve for losses that have already been incurred but have not yet been settled (a significant share of which falls on the share of reinsurers), instability of the operating environment, variability of the regulatory field, ongoing military operations in Ukraine due to the aggression of RF, as well as deterioration of the operating environment and uncertainty about the prospects for economic development.

In order to carry out the analytical research the materials provided by PJSIC «INGO Ukraine» have been used, including: financial statements by 2020-2022, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.

Finance department
For more information please contact:
Press service of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua