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PRESS-RELEASE: Rating of IC «BUSIN» is improved up to the level A according to the international scale


10/01/2013

January 10, 2013 the rating committee of RA «Expert-Rating» has decided to improve the financial stability rating of the insurer IC «BUSIN» up to the level А according to the international scale of the Agency, the insurer’s rating remains unchanged according to the national scale. The Agency has made this decision based on the study of preliminary data of IC «BUSIN» in the 12 months of 2012.

1. The expected volume of gross premiums for the 2012 amounts to UAH 85,253 mln. The Agency reminds that gross premiums of the insurer in 2011 amounted to UAH 78,730 mln. Thus, according to the preliminary data, in 2012 IC «BUSIN» has provided the increase in gross business by 8,29% that deserves a positive assessment against the background of the slowdown of economic growth in Ukraine in the third and fourth quarters.

2. IC «BUSIN» has received 33% of UAH 85,253 mln indirectly from non-residents. However, in the aggregate, according to the Agency, more than 90% of total premiums come from air carriers, involved in international business and which have a large proportion of foreign currency proceeds and depend on international, rather than on national market of air transportations.

3. In December of 2012 IC «BUSIN» resumed the obligatory contracts of reinsurance, concluded in the international market via a broker Lloyd's, with the participation of the Lloyd's syndicates and the leading reinsurance companies with the financial stability rating of not lower "А-". In December of 2012 IC «BUSIN» raised the limit of the obligatory contract of aviation liability reinsurance up to USD 850 mln with the inclusion of war risks (clause AVN52) up to the full limit of liability.

In the Agency’s opinion, the 2012 year has become a turning point for the company and has decreased its dependence on the domestic insurance market in Ukraine. The financial state of IC «BUSIN» increasingly depends on the events in the market of international air transportations and loses the correlation with the national market. In this situation the parity between the assessment of the financial stability rating of the insurer according to the national and international scale must be changed.

 

Analytical service of RA «Expert-Rating»

Confirmation of IC «BUSIN» (english version) - 10.01.2013

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