IBI-Rating has affirmed the credit rating of PJSC «NJSIC «ORANTA» at uaA– grade

IBI-Rating informs on affirming of the credit rating of PJSC «NJSIC «ORANTA» at uaA– grade, with a «stable» outlook.

The affirming of the credit rating grade of the Insurer is due to the strong market positions, the presence of well-developed sales channels, which contributes to the stable dynamics of insurance payments, sufficient indicators of solvency (as of 01.04.2018, the actual solvency margin exceeded the regulatory reserve by almost twice times), as well as sufficient levels of diversification and quality of assets, which represented the insurance reserves. In turn, IBI-Rating notes a significant amount of losses of previous years, reducing its capitalization level, high value of the combined loss ratio, as well as persisting difficult situation in the economy limiting the financial capacity of households and enterprises of the real sector.

PJSC «NJSIC «ORANTA» is the legal successor of Ukrgosstrakh, founded on November 25, 1921. In 1993, Ukrgosstrakh was transformed into the Public Joint-Stock Company «National Joint-Stock Insurance Company «Oranta», the founder of which was the State Property Fund of Ukraine. In 2007, the State Property Fund of Ukraine sold to the investor the last shareholding which was in state ownership. As of the 01.04.2018, the shareholders of PJSC «NJSIC «ORANTA», which have more than 10% of the shares, are JSC «BTA Bank» (Kazakhstan – 35.17% of shares), as well as company registered in the Republic of Cyprus - BACKWOOD HOLDINGS LIMITED (13.74%).

The insurer activities basis on the 33 licenses - 15 mandatory and 18 voluntary types of insurance. Following the results of 2017, PJSC «NJSIC «ORANTA» occupied such positions among more than 271 participants of the insurance market (non-life): assets - 12th place; own capital - 15th place; insurance reserves and payments - 10th place; insurance premiums - 14th place. In addition, PJSC «NJSIC «ORANTA» stably ranks first in terms of the volume of insurance premiums for compulsory insurance of civil liability of owners of land vehicles. In the analyzed period, the result of the main activity of the insurer remained being negative, which was due to the growth of the loss-making auto insurance, significant costs in the form of commission insurance agents, as well as the cost of creating reserves of doubtful debts. The net loss of PJSC «NJSIC «ORANTA» in the results of 2017 and I quarter of 2018 amounted to UAH 4.6 million and UAH 32.4 million, respectively.

In order to conduct the analytical research the materials provided by PJSC «NJSIC «ORANTA» have been used, including: the annual financial statements for 2015-2017 and 3 months of 2018, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.

Financial department
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