IBI-Rating has affirmed the credit rating of «UPSC» PrJSC

Rating agency IBI-Rating informs on affirming of the credit rating of «UPSK» PrJSC at uaAA 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 has 60 licenses for carrying out insurance business (21 types of voluntary insurance, 39 types of compulsory insurance). 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 in 2023, «UPSK» PrJSC attracted insurance payments totaling UAH 476.1 million, which is 2% more than in 2022. In addition, due to the growth of other operating income, in the form of amounts returned from technical reserves and an increase in income from financial activities (due to an increase in term funds in bank accounts), the amount of total income slightly exceeded the figure for 2022. In turn, the formation of additional insurance reserves in a significant amount (almost UAH 180.9 million in 2023) led to a certain decrease in the performance indicators of «UPSK» PrJSC. Thus, according to the results of 2023, the combined loss ratio amounted to 102.8%, and net profit for this period amounted to UAH 5.7 million (against a profit of UAH 57.2 million in 2022).

The affirmation of the credit 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 russian aggression, 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, 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