Expert-Rating points out following positive tendencies in company’s development in Q1 of 2008:
1. The amount of gross premiums increased by 88.29% to UAH 59.415 million. In Expert Rating opinion
Company managed to get the considerable growth of premiums at the expense of active merchandising. In Q1 2008 company has piled up expenses on both making and renewal of contracts threefold. Company also has implemented the polices remote sales project.
2. By results of its activity in the first quarter of 2008 Company has incurred UAH 5.86 million losses. The losses were caused by:
- the growth of indemnity ratio (34.65% in 2008 and 26.62% in 2007). Total volume of indemnity in Q1 2008 has been increased 2.2 times in comparison with that of the last year and has amounted UAH 20.589 million:
- the acquisition expenses growth.
The losses in Q1 constituted 4.3% out of total amount of equity capital and on Expert Rating opinion should not have a substantive influence on either Company’s financial performance or its solvency. The level of acquisition expenses and collected premiums ratio remains high enough. However it should be taken into consideration that increasing market expenses Company stimulates the premiums growth which in turn increases its domestic market share.
In Expert Rating opinion the determining factor which maintains Company on the very high level is high
level of external maintenance ensured by company’s stockholders. By results of company’s activity in Q1 2008 the AXA group’s income increased by 2% to EURO 8.885 billion, the quantity of underwritten polices has grown up 263 000 pcs. on Q1 last year.