PRESS-RELEASE: RA «Expert-Rating» confirms the rating of JSC IC «BUSIN» at the level uaAA according to the results of 2011

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PRESS-RELEASE: RA «Expert-Rating» confirms the rating of JSC IC «BUSIN» at the level uaAA according to the results of 2011

12/04/2012

PRESS-RELEASE

(Translation from Russian)

RA «Expert-Rating» confirms the rating of JSC IC «BUSIN» at the level uaAA according to the results of 2011

April 12, 2012 RA «Expert-Rating» confirms the financial stability rating of JSC IC «BUSIN» at the level uaAA according to the national scale following to the results of 2011. The rating uaAA indicates a high level of the Company’s reliability.

Table

Key performance indicators of Private JSC IC «BUSIN»

Indicators	2011 (01.01.2012)	2010 (01.01.2011)	Change	Growth rate, %
Total assets, th. UAH	92611,9	83378,6	9233,3	11,07%
Shareholders' equity, th. UAH	55120,2	45896,6	9223,6	20,10%
Total liabilities, th. UAH	37491,7	37482	9,7	0,03%
Shareholders' equity/ Total liabilities ratio, %	147,02%	122,45%	24,57 p.p.	-
Cash and cash equivalents, th. UAH	39366	31597,4	7768,6	24,59%
Cash and cash equivalents/ Total liabilities ratio, %	105,00%	84,30%	20,70 p.p.	-
Gross premiums, th. UAH	78730,6	73316,9	5413,7	7,38%
Reinsurer’s proportion in gross premiums, th. UAH	48607,1	38222,6	10384,5	27,17%
Reinsurer’s proportion in gross premiums/ Gross premiums ratio, %	61,74%	52,13%	9,61 p.p.	-
Insurance indemnities and reimbursements, th. UAH	1512,8	2805,7	-1292,9	-46,08%
Insurance indemnities and reimbursements / Gross premiums ratio for the period, %	1,92%	3,83%	-1,91 p.p.	-
Financial result from operating activities, th. UAH	19984,7	18074,3	1910,4	10,57%
ROS, %	25,38%	24,65%	0,73 p.p.	-
Net profit (loss), th. UAH	19222,8	17374,6	1848,2	10,64%
ROE, %	34,87%	37,86%	-2,98 p.p.	-

Source: The Company’s data; calculations by RA «Expert-Rating»

1. The Company’s assets have grown by 11,07% in 2011 and as of 01.01.2012 its volume has amounted to UAH 92,612 mln. Shareholders’ equity has increased by 20,1% following the results of 2011 and on 01.01.2012 it has equaled to UAH 55,120 mln. At the same time, the shareholders’ equity/liabilities ratio of 2011 has grown by 24,57 p.p. in comparison with the 2010 and as of 01.01.2012 it has amounted to 147,02%. Therefore, the equity has exceeded the insurer’s liabilities almost in 1,5 times, which continues to indicate the redundant capitalization of the Company.

2. In 2011 the growth of liabilities of JSC IC «BUSIN» has amounted to only 0,03%, at the same time cash have increased by 24,59% for the same period. Therefore, the cash/liabilities ratio has grown from 84,3% up to 105% that provides the insurer with sufficient liquidity for paying its debts.

3. In the period from 01.01.2011 to 01.01.2012 the Company has collected gross premiums of UAH 78,731 th. that is by 7,38% more than the same indicator of 2010. The reinsurers’ proportion in gross premiums of IC «BUSIN» has increased by 9,61 p.p. and on 01.01.2012 it has amounted to 61,74%. Insurance payments performed by the Company have decreased by 46,08% according to the results of 2011, and therefore, its volume has amounted to UAH 1,513 mln. The Agency notes that the insurance company «BUSIN» has finished the 2011 with net profit of UAH 19,223 mln that is by 10,64% more than in 2010. Such a result of activity has been caused by a significant decrease in payments. Indicators, such as ROS and ROE have remained at the high level and have amounted to 25,38% and 34,87% respectively, which exceeds the same indicators of most insurance companies in the Ukrainian market.

Analytical service of RA «Expert-Rating»

Confirmation of JSC IC «BUSIN» (english version) - 12.04.2012