IBI-Rating has affirmed the financial strength rating of «UPSK» PrJSC

Rating agency IBI-Rating informs on affirming of the financial strength rating of «UPSK» PrJSC at uaAAifr grade, rating outlook is «evolving». The rating remains on CreditWatch List due to the martial law imposed in connection with Russian invasion of Ukraine, which has a significant negative impact on the economic condition of the country and its financial stability.

«UPSK» PrJSC has been working in the insurance market since 1992. The majority shareholder and Chairman of the supervisory board is Mr Mykhailov Oleksandr. The insurer is a member of the Motor (Transport) Insurance Bureau of Ukraine and works with 25 risks within 18 insurance classes. Despite the strong competition in the Ukrainian insurance market, «UPSK» PrJSC demonstrates a relatively stable position among more than 100 participants of the insurance market (non-life), іt is included in the list of TOP 25 market leaders in terms of key indicators: the amount of insurance reserves, assets, equity, attracted premiums and payments made. In addition, the insurer has a well-developed network, which is represented in the majority oblasts of Ukraine.

The positive factors of the insurer's activity include a substantial stock of assets that may be represented by insurance reserves. Moreover, the structure of assets, which are formed by insurance reserves, is rated as good. Additionally, it should be noted that the diversification of bank deposits in the context of banking institutions (including state institutions) is sufficient, indicated banks have determined the credit ratings that correspond to the high or the highest investment level of the national rating scale.

According to the results of the first half of 2024, «UPSK» PrJSC attracted insurance payments totaling UAH 227.8 million, which corresponds to the same period last year. The strategic types of insurance for the Company are transport insurance (MTPL, CASCO and other motor liability) - 56% of premiums, as well as health insurance (15% of total revenues). The insurer's sales channels are well diversified, which contributes to the stable dynamics of insurance premiums. According to the results of the first half of 2024, «UPSK» PrJSC made insurance payments totaling UAH 74 million. In the first half of 2024, the result of insurance activities (technical result) of «UPSK» PrJSC amounted to UAH (-)20.6 million.

The affirmation of the financial strength rating of «UPSK» PrJSC is due to the company's entry into the list of the largest participants in Ukrainian insurance market, acceptable diversification of the insurance portfolio, high quality and sufficient diversification of assets represented by insurance reserves. In turn, the Rating Agency notes the increased sensitivity of the financial system of Ukraine to operational and other risks, which is due to the prolonged military actions on the territory of Ukraine by the aggression from Russia, as well as the deterioration of operating conditions and uncertainty regarding the prospects for economic development. At the same time, should be noted the good quality of reinsurance operations risk, broad client base, as well as well-developed sales channels, which contributes to the stable dynamics of insurance payments.

In order to conduct the analytical research, the materials provided by «UPSK» PrJSC, have been used, including: annual financial statements for 2021-2023 and 6 months of 2024, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.

Financial department
For additional information please contact:
Press office of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua