PRESS-RELEASE

(Translation from Russian)

 

The financial stability rating of the insurer PJSC IC «NOVA» is confirmed at the level uaAA

 

May 17, 2012 RA «Expert-Rating» confirms the financial stability rating of the insurer PJSC IC «NOVA» at the level uaAA according to the national scale. The insurer with rating uaAA is characterized by a high financial stability in comparison with other Ukrainian insurance companies. Confirming the rating, the Agency was guided by the results of the Company’s activity in the Q1 of 2012.

Table

Key performance indicators of PJSC IC «NOVA» in the Q1 of 2012

Indicators	I quarter of 2012 (31.03.2012)	I quarter of 2011 (31.03.2011)	Change	Growth rate, %
Total assets, th. UAH	80572	78622	1950	2,48%
Shareholders' equity, th. UAH	38776	35926	2850	7,93%
Total liabilities, th. UAH	41796	42696	-900	-2,11%
Shareholders' equity/ Total liabilities ratio, %	92,77%	84,14%	8,63 p.p.	-
Cash and cash equivalents, th. UAH	33497	33677	-180	-0,53%
Cash and cash equivalents/ Total liabilities ratio, %	80,14%	78,88%	1,27 p.p.	-
Gross premiums, th. UAH	13151,2	13859,4	-708,2	-5,11%
Reinsurer’s proportion in gross premiums, th. UAH	3265,2	5640,6	-2375,4	-42,11%
Reinsurer’s proportion in gross premiums/ Gross premiums ratio, %	24,83%	40,70%	-15,87 p.p.	-
Insurance indemnities and reimbursements, th. UAH	6964,4	6537,1	427,3	6,54%
Insurance indemnities and reimbursements / Gross premiums ratio for the period, %	52,96%	47,17%	5,79 p.p.	-
Financial result from operating activities, th. UAH	852	826	26	3,15%
ROS, %	6,48%	5,96%	0,52 p.p.	-
Net profit (loss), th. UAH	737	839	-102	-12,16%
ROE, %	1,90%	2,34%	-0,43 p.p.	-

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

 

1. As of 31.03.2012 assets of the Company have amounted to UAH 80,572 mln that is by 2,48% more, than the same indicator on 31.03.2011. In the period from 31.03.2011 to 31.03.2012 shareholders’ equity of the insurer has grown by 7,93% and on 31.03.2012 it has amounted to UAH 38,776 mln. Liabilities of IC «NOVA» have decreased by 2,11% in the same period, which has resulted in the increase of the level of the Company’s capitalization from 84,14% (on 31.03.2011) up to 92,77% (on 31.03.2012). The increase in capitalization positively affects the solvency of the insurer.

 

2. Cash on accounts of the company has remained almost unchanged and on 31.03.2012 its amount has equaled to UAH 33,497 mln. Therefore, taking into account the decrease in the insurer’s liabilities, the liquidity ratio of the Company has increased from 78,88% (on 31.03.2011) up to 80,14% (31.03.2012) that is approximately by 5 p.p. higher than the market average indicator and demonstrates a good level of the Company’s liquidity.

3. In the Q1 of 2012 IC «NOVA» has renewed the program of obligatory reinsurance for accident insurance. Risks of PJSC IC «NOVA» on accident insurance are reinsured by the international reinsurer Polish Re (Poland). Capacity of obligatory reinsurance agreement for each insured person has amounted to UAH 4 mln. The fact the obligatory reinsurance of IC «NOVA» is provided by the company registered in EU, positively affects the quality of the insurer’s products.

 

4. IC «NOVA» has collected UAH 13,151 mln of gross premiums in the Q1 of 2012 that only is by 5,11% less than in the Q1 of 2011. Taking into account the decrease in the economic growth rate of Ukraine in the Q1 of 2012, a small correction of gross business of the insurer has objective reasons. Reinsurers’ proportion in gross premiums of the company has decreased by 42,11% following the results of the Q1 of 2012. Insurance indemnities have amounted to UAH 6,964 mln in the first three months of 2012 that is by 6,54% more, than in the same period of 2011.

5. The financial result from operating activities has amounted to UAH 852 th. in the Q1 of 2012 that is by 3,15% more than the same indicator in the Q1 of 2011. Return on sales of the company has slightly increased and this indicator has amounted to 6,48% in the Q1 of 2012. IC «NOVA» has finished the first three months of current year with net profit of UAH 737 th. that is by 12,16% lower than the same indicator in the Q1 of 2011. The activity of the company has remained profitable, that positively affects the solvency of the company against the background of growing liquidity.

 

Analytical service of RA «Expert-Rating»

Confirmation of PJSC IC «NOVA» (english version) - 17.05.2012