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IBI-Rating has affirmed the financial strength rating of JSIC «INGO»
08.04.2024
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 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 30 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 about 100 participants in the Ukrainian insurance market (non-life). Thus, according to the results of 2023, the insurer ranked 3 in terms of equity, 8 – in terms of insurance reserves, 7 – in terms of assets and net premiums written, 5 – in terms of insurance claims paid, as well as the 4 place – in terms of financial results. 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 2.7 billion in 2023, which is 50% more than in 2022 and is due to the recovery of the insurance market after a significant deterioration in operating conditions against the background of the introduction of martial law in the country due to the russian aggression, as well as the Insurer's effective policy of attracting new customers. Due to the conclusion of new contracts with corporate clients, health insurance accounts for one of the largest parts of the portfolio structure (about 25%). Transport insurance premiums (Motor hull, MOTPL, Green Card insurance) account for 43.4% of the portfolio; property and cargo insurance - 7% and 8%, respectively. Rating agency notes the high quality of outgoing reinsurance operations: about 91% 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.
In 2023, the volume of insurance claims paid amounted to UAH 1.1 billion, which is 57% more than in 2022. The main share of payments is made under voluntary insurance contracts - about 78% of all payments. The level of net insurance claims increased from 42.9% to 46.3% as of 01.01.2024 compared to the beginning of the last year, which is in particular due to the increase in the level of health and motor insurance losses. The increase in earned premiums and the increase in the amount of amounts returned from technical reserves contributed to a positive financial result in 2023 - net profit amounted to UAH 232.5 million, which is 46% more than in 2022.
The affirmed financial strength 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. 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 2021-2023, 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
(044) 362-90-84
press(at)ibi.com.ua
JSIC «INGO» has been operating in the insurance market for over 30 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 about 100 participants in the Ukrainian insurance market (non-life). Thus, according to the results of 2023, the insurer ranked 3 in terms of equity, 8 – in terms of insurance reserves, 7 – in terms of assets and net premiums written, 5 – in terms of insurance claims paid, as well as the 4 place – in terms of financial results. 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 2.7 billion in 2023, which is 50% more than in 2022 and is due to the recovery of the insurance market after a significant deterioration in operating conditions against the background of the introduction of martial law in the country due to the russian aggression, as well as the Insurer's effective policy of attracting new customers. Due to the conclusion of new contracts with corporate clients, health insurance accounts for one of the largest parts of the portfolio structure (about 25%). Transport insurance premiums (Motor hull, MOTPL, Green Card insurance) account for 43.4% of the portfolio; property and cargo insurance - 7% and 8%, respectively. Rating agency notes the high quality of outgoing reinsurance operations: about 91% 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.
In 2023, the volume of insurance claims paid amounted to UAH 1.1 billion, which is 57% more than in 2022. The main share of payments is made under voluntary insurance contracts - about 78% of all payments. The level of net insurance claims increased from 42.9% to 46.3% as of 01.01.2024 compared to the beginning of the last year, which is in particular due to the increase in the level of health and motor insurance losses. The increase in earned premiums and the increase in the amount of amounts returned from technical reserves contributed to a positive financial result in 2023 - net profit amounted to UAH 232.5 million, which is 46% more than in 2022.
The affirmed financial strength 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. 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 2021-2023, 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
(044) 362-90-84
press(at)ibi.com.ua