IBI-Rating has affirmed the financial strength rating of CAA «IC «MOTOR-GARANT» at uaAAifr grade

Rating agency IBI-Rating informs on affirming of the financial strength rating of COMPANY WITH ADDITIONAL ABILITY «INSURANCE COMPANY «MOTOR-GARANT» at uaAAifr grade, the rating outlook is «evolving».

CAA «IC «MOTOR-GARANT» has been operating in the insurance market since 2000 and is a part of the banking group together with «MOTOR-BANK» JSC. The ultimate beneficial owner of CAA «IC «MOTOR-GARANT» is Viacheslav Boguslaev, who owned 83.6% shares of the insurance company. The insurer is a member of the Insurance Business Association, the League of Insurance Organizations of Ukraine, the Motor (Transport) Insurance Bureau of Ukraine, as well as the Ukrainian Nuclear Insurance Pool. During the analyzed period, the company received new licenses for insurance activities, respectively, as of the beginning of April 2020 CAA «IC «MOTOR-GARANT» has 28 licenses for insurance activities (16 types of voluntary insurance, 12 types - compulsory insurance).

The main office of CAA «IC «MOTOR-GARANT» is located in Zaporizhzhia. In the analyzed period, the company actively opened new insurance sales departments. As of the beginning of April this year, the regional network had 12 representative offices in the following oblasts: Zaporizhia, Kyivska, Mykolaivska, Kirovohradska, Lvivska, Ternopilska, Khmelnytska, Kharkivska, Poltavska, Donetska, Odeska and Dnipropetrovska. The expanding of the network should affect a further increase of the insurer scale. Despite the high competition in the insurance market of Ukraine, CAA «IC «MOTOR-GARANT» demonstrates relatively stable positions among more than 200 non-life market participants, being in the TOP 50 market leaders in terms of key indicators: assets, equity, attracted premiums and payments made.

The strategic types of insurance for the company are: compulsory insurance of civil aviation, insurance against fire risks, property insurance, as well as medical insurance. The insurer additionally receives substantial revenues under civil liability insurance contracts for land transport owners (including carrier liability), cargo insurance, as well as under compulsory motor liability insurance policies. CAA «IC «MOTOR-GARANT» demonstrates acceptable performance indicators, which in particular is facilitated by the low level of insurance payments. The net profit of the insurer in 2019 amounted to UAH 0.8 million. The financial result by Q1 of this year was also positive and amounted to UAH 0.7 million.

The affirmed grade of the financial strength rating of CAA «IC «MOTOR-GARANT» is due to the acceptable diversification of the insurance portfolio by type of insurance, stable dynamics of the volume of insurance premiums earned, high liquidity and solvency, as well as good quality and sufficient diversification of assets that represent insurance reserves. In turn, restraining factors are the presence of dependence on individual large insurers, a significant amount of financial investment in the form of contributions to the capital of other enterprises, instability of the operating environment, the volatility of the regulatory field, and slowing business activity due to deteriorating epidemiological situation in the country.

In order to conduct the analytical research the materials provided by CAA «IC «MOTOR-GARANT» have been used, including: annual financial statements for 2017-2019 and 3 months of 2020, 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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