PRESS-RELEASE: Rating of PrJSC «IC «NOVA» is updated at the level uaАА

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PRESS-RELEASE: Rating of PrJSC «IC «NOVA» is updated at the level uaАА

26/12/2013

December 26, 2013 Rating agency «Expert-Rating» has decided to confirm the financial stability rating of the insurer Private JSC «Insurance company «NOVA» at the level uaAA (a very high level of stability) according to the national scale. When confirming the rating of the insurer at such a high level, the Agency was guided by the results of the Company’s activity in the 9 months of 2013.

Table

Key performance indicators of PrJSC «IC «NOVA»

in the 9 months of 2013 (th. UAH, p.p., %)

Indicators	9 months of 2013 (30.09.2013)	9 months of 2012 (30.09.2012)	Change	Growth rate, %
Total assets, th. UAH	112 766,0	70 059,2	42 706,8	60,96%
Shareholders’ equity, th. UAH	82 289,0	36 538,2	45 750,8	125,21%
Gross liabilities, th. UAH	30 477,0	33 521,0	-3 044,0	-9,08%
Shareholders’ equity/Liabilities ratio (the capital adequacy ratio), %	270,00%	109,00%	161,00 p.p.	-
Cash and cash equivalents, th. UAH	14 980,0	27 553,0	-12 573,0	-45,63%
Cash and cash equivalents/ Liabilities ratio, %	49,15%	82,20%	-33,04 p.p.	-
Total gross premiums, th. UAH	33 344,6	34 001,1	-656,5	-1,93%
Proportion of insurance premiums, belonged to the reinsurers, th. UAH	12 604,1	12 189,9	414,2	3,40%
Insurance premiums, belonged to the reinsurers/Gross premiums ratio, %	37,80%	35,85%	1,95 p.p.	-
Insurance indemnities and reimbursements, th. UAH	7 066,5	18 667,9	-11 601,4	-62,15%
Insurance indemnities/Gross premiums ratio for the period, %	21,19%	54,90%	-33,71 p.p.	-
Financial result from operating activities, th. UAH	1 003,0	2 186,0	-1 183,0	-54,12%
ROS, %	3,01%	6,43%	-3,42 p.p.	-
Net profit (loss), th. UAH	52,0	-1 501,0	1 553,0	-103,46%
ROE, %	0,06%	-4,11%	4,17 p.p.	-

Source: data of the Company, calculations by RA «Expert-Rating»

1. Analysis of the balance sheet indicators of the Company IC “Nova” in the period from 30.09.2012 to 30.09.2013 has shown the growth of assets by 60,96% that amounts to UAH 42,7 mln. Shareholders’ equity of the Company at the end of the Q3 of 2013 has amounted to UAH 82,3 mln that is by 125,21% higher than the same indicator according to the results of the 9 months of 2012. At the same time, the Company has managed to reduce gross liabilities by UAH 3,04 mln that has increased the ratio of capitalization of IC “Nova” by 161 p.p. and on 30.09.2013 it has amounted to 270%.

2. The balance of cash at the accounts of the Company as of 01.10.2013 has amounted to UAH 14,98 mln, while on 01.10.2012 – UAH 27,55 mln. As a result, the liquidity ratio of the Company has slightly decreased and has amounted to UAH 49,15% that corresponds to a good level of liquidity.

3. The financial result from operating activities of IC “Nova” has decreased by 54,12%, nevertheless the considered policy of reducing expenses has enabled the Company to finish the 9 months of 2013 with net profit of UAH 52 th., while the 9 months of 2012 have been finished with loss of UAH 1 501 th. As a result, ROE has grown by 4,17 p.p.

4. The Company has collected UAH 33,3 mln of gross premiums in the 9 months of 2013 that almost corresponds to the level of premiums in the 9 months of 2012. The proportion of insurance premiums that belong to the reinsurers has grown by 3,40%, respectively the ratio of premiums, which belong to the reinsurers, to gross premiums has grown by 1,95 p.p. A significant reduction of insurance indemnities and compensations has lowered the ratio of indemnities to gross premiums by 33,71 p.p.

Summing up the results of the analysis of the results of activity of IC “NOVA” in the 9 months of 2013, the analytical service of RA “Expert-Rating” notes a significant growth of assets and reserve of the Company’s capitalization. The key result of the Company’s activity has become the availability of net profit according to the results of the first three quarters of 2013.

Analytical service of RA «Expert-Rating»

Confirmation of rating of IC "NOVA" (english version) - 26.12.2013