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IBI-Rating has affirmed the credit rating of «A» series bonds of PrJSC «IC «SALAMANDRA» at uaBBB- grade, the outlook is «evolving»

04.04.2019
Rating agency IBI-Rating informs on affirming of the credit rating of «A» series bonds PrJSC «IC «SALAMANDRA» at uaBBB- grade, the outlook is «evolving».

PrJSC «IC «SALAMANDRA» has been operating in the insurance market since 1994 and is the legal successor of PrJSC «IC «DOM STRAHOVANIE» and PrJSC «IC «DNIPRINMED». The shareholders of the insurance company are 11 individuals - residents of Ukraine, none of which exceeds 10% of the authorized capital. The insurance company is a member of the Motor (Transport) Insurance Bureau of Ukraine and carries out its activities on the basis of 24 licenses ? 8 compulsory types and 16 voluntary types of insurance.

According to the results of 2018, the PrJSC «IC «SALAMANDRA» was attracted insurance premiums for the total amount of almost UAH 77.3 million which is almost a third inferior to the indicator in 2017 and is mainly due to a reduction in revenues from property insurance contracts and fire risks. In turn, the auto insurance portfolio (CASCO and MOTPL) showed a partial increase. Medical and auto insurance are the priority insurance types for the company (53% and 33% of the insurance portfolio respectively). Insurance payments by 2018 amounted to UAH 36 million, of which almost 2/3 accounted for compensation under contracts of health insurance. The main activity of the insurer is kept profitable; the net financial result is also positive - net profit of the company for the previous year amounted to UAH 274.3 thousand.

Decision on the issue of registered interest-bearing unsecured A series bonds for the amount UAH 100 million was adopted on July 16, 2011 at the general meeting of shareholders of the insurance company. The maturity of the bonds is July 28, 2021. The goal of the bond issue is to expand the territorial divisions, the agent network, implementation of corporate IT-systems, develop and implement of the new insurance products. As of the beginning of 2019, bonds were placed at an amount of UAH 16.4 million.

The affirming of the credit rating of bonds is due to high indicators of capitalization and solvency (as of 01.01.2019 the actual stock of solvency exceeded the normative almost by 5 times); acceptable diversification of the insurance portfolio and the assets, which represent insurance reserves. In turn, the Rating Agency indicates increase in debt burden; the sensitivity of the company to prudential risks; low diversification of initial reinsurance operations; the instability of the operating environment, the variability of the regulatory field, as well as the sensitivity of the company's revenue base to changing the situation in the real sector.

In order to conduct the analytical research the materials provided by PrJSC «IC «SALAMANDRA» have been used, including: annual financial statements for 2016-2018 years, the 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