IBI-Rating has affirmed the credit rating of JSIC «INGO» at uaAA grade

Rating agency IBI-Rating informs on affirming of the credit rating of JSIC «INGO» at uaAA 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 russian troops to Ukraine 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 29 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 the first quarter of 2023, the insurer ranked 4th in terms of equity, 7th in terms of assets, 6th in terms of net premiums written, 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 706.8 million in the first quarter of 2023, which is 83% more than in the first quarter of 2022 and is due to the gradual recovery of the insurance market after the full-scale invasion of the Russian troops. In the analyzed period, the structure of the Company's insurance portfolio has undergone changes, due to the conclusion of a large volume of new contracts with legal entities, health insurance premiums increased to 43.2%; accordingly, revenues from transport insurance (CASCO, MOTPL, «Green Card» insurance) amounted to 32.4%; property and cargo insurance - 4% and 7%, respectively.

The Rating agency notes the high quality of outgoing reinsurance operations: more than 95% 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. According to the results of the first quarter of 2023, the company managed to attract a record amount of premiums compared to the same periods of previous years, which amounted to UAH 508 million, which is 35% more than in the first quarter of 2022 and accounts for 66% of the Insurer's revenues. The increase in earned premiums and significant income from financial activities contributed to a positive financial result in the first quarter of 2023 - net profit amounted to UAH 92 million, which is 8 times more than in the first quarter of 2022.

The affirmed credit rating grade of the JSIC «INGO» 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. High 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 and first quarter 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:
Press service of IBI-Rating
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