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

Rating agency IBI-Rating informs on determining of the financial strength rating of COMPANY WITH ADDITIONAL ABILITY «INSURANCE COMPANY «MOTOR-GARANT» at uaAAifr grade, with a «stable» outlook.

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 at the beginning of April this year owned 83.6% 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. The company has 21 licenses for insurance activities (13 types of voluntary insurance, 8 types of compulsory insurance).

The main office of CAA «IC «MOTOR-GARANT» is located in Zaporizhzhia; in addition, the insurer has three representative offices and an insurance sales departments in the Zaporizhskii, Dnipropetrovskii, Kyivskii, Khmelnytskii and Kharkivskii oblasts. Despite the high competition in the insurance market of Ukraine, CAA «IC «MOTOR-GARANT» demonstrates relatively stable positions among more than 200 participants of the insurance market (non-life), being in the TOP 50 market leaders by the key indicators: assets, equity, attracted premiums and made payments. In addition, according to the results of 2018, CAA «IC «MOTOR-GARANT» took the third place among insurance companies in the Zaporizhskii oblast in terms by the insurance premiums, as well as the first place in voluntary medical insurance in the Zaporizhskii oblast.

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. According to the results of 2018 and the Q1 of 2019, net profit amounted to UAH 17.7 million, and UAH 1.5 million respectively.

The determined 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, constraints are the the presence of dependence on individual large insurers, a significant amount of financial investments in the form of contributions to the capital of other enterprises, the instability of the operating environment, the volatility of the regulatory field, and the sensitivity of the company's revenue base to changes in the real sector.

In order to conduct the analytical research the materials provided by CAA «IC «MOTOR-GARANT» have been used, including: annual financial statements for 2016-2018 and 3 months of 2019, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.

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