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IBI-Rating has affirmed the financial strength rating of PJSC «NJSIC «ORANTA» at uaAA–ifr grade

26.05.2023
Rating agency IBI-Rating informs on affirming of the financial strength rating of PJSC «NJSIC «ORANTA» at uaAA-ifr, with outlook revision from «negative» to «evolving». The credit rating has been kept on the Credit Watch List due to the martial law imposed in connection with the invasion of Russian troops into Ukraine, which has a significant negative impact on the country's economic condition and financial stability.

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. Currently, the beneficial owner of the insurance company is Oleksandr Yaroslavskyi, the owner of DCH group. According to the Rating Agency, the accession of the insurance company to one of the largest Ukrainian business groups creates a reliable basis and additional opportunities for further development of PJSC «NJSIC «ORANTA».

The insurer activities basis on the 32 licenses - 14 mandatory and 18 voluntary types of insurance. According to the results of 3 months of 2023, PJSC «NJSIC «ORANTA» held the following positions among more than 120 participants in the non-life insurance market: own capital - 14th place; assets and insurance reserves - 15th place, as well as 11th position - in terms of insurance payments made and net premiums earned. The insurance company also consistently holds leading positions in terms of insurance premiums for compulsory insurance of civil liability of owners of land vehicles.

Despite the ongoing military operations in Ukraine and the deterioration of the business environment, PJSC «NJSIC «ORANTA» demonstrates sufficient performance indicators. The insurer managed to cover the loss of previous years due to high profits in the analyzed period. Due to the increase in earned premiums against the background of savings in the main categories of expenses, the value of the combined loss ratio decreased in the analyzed period to 96.8%, and net profit for the results of 2022 and the first quarter of 2023 amounted to more than UAH 77 million and UAH 1.1 million, respectively.

The affirmation 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 that represent insurance reserves, high solvency ratios, as well as stable dynamics of attracted insurance premiums. At the same time, there is a low diversification of the insurance portfolio, a high share of reserves for declared but not paid losses in total insurance reserves, as well as the sensitivity of the financial system to operational and other risks, due to the ongoing hostilities in Ukraine due to the aggression of the Russian Federation, as well as the deterioration of the operating environment and uncertainty about the prospects for economic development.

In order to conduct the analytical research the materials provided by PJSC «NJSIC «ORANTA» have been used, including: annual financial statements for 2020-2022 and 3 months of 2023, 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 us:
Press service of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua