News feed

Інформаційні партнери:

 

 

 

 

 


Expert-Rating agency has raised the stability rating assessment to Busin JSIC from uаA+ grade to uаAA


02/03/2009

The Expert-Rating agency has raised stability rating to Busin JSIC from a+ grade to аa (uaAA on national scale). uaAA means a very high level of stability with positive forecast.

The current rating assessment is based on following results of analyses of Company accounts:
1. During the 2008 the amount of gross premiums had increased by 38.89% and reached the record
level at the rate of UAH 53.064 mln. The reinsurers’ share in gross premium decreased from 77.0% to
74.5%, the amount of gross indemnity decreased by 32.4% while indemnity ratio fell by1.45%. Such
tendency being characterized by premium growth and indemnity fall became one of the occasions of
Company’s ROE growth in 2008.
2. The amount of realized net income exceeded 7.7 times the similar indicator in 2007 and made up
UAH18.641 million. In 2008 Company’s equity capital efficiency (ROE) amounted to 40.22%. A rapid grow of Company’s ROE can be explained not only by successful insurance activity but by selling of the
part of capital assets which had started to devalue since October 2008. Expert-Rating considers this fact as Company’s strategy aimed at increase of assets liquidity.
3. During the 2008 Company’s equity capital has grown by 9.26% only, while assets have grown by 40.34%, equity ratio has decreased by 18.21% and made up 64.0%. Agency does not consider such
decrease to be critical because of the following reasons. At first, Company has changed the assets structure, that is, they have significantly increased the share of liquid assets in balance structure. Second, Company has increased its statuary fund 2.4 times (UAH24.4 million).
4. In December 2008 Ukraine has ratified a Montreal convention on enhancement of air carriers’ responsibility for loss of life of air passengers. In spite of growing tendency to decrease of passenger
traffics in air transport, Agency expects the pronounce growth of aviarisks insurance market in connection with the Convention ratification. On Agency opinion, ratification of Montreal Convention as well as implementation in Ukraine of international standards of air carriers’ responsibility appears to be the fundamental basis of growth of premiums of MIR JSIC in 2009.

See the details

Share on livejournal.com Share on twitter.com