November 21, 2012 the rating committee of RA «Expert-Rating» has decided to confirm the financial stability rating of «Insurance company «Proxima», ALC at the level uaA according to the national scale. The rating of the company was confirmed on the basis of results of the insurer’s activity in the 9 months of 2012.

Table 1

Key performance indicators of «Insurance company «Proxima», ALC in the 9 months of 2012 (th. UAH, p.p., %)

Source: Data of the Company, calculations by RA «Expert-Rating»

1. Assets of the insurer have amounted to UAH 71,76 mln as of 01.10.2012 that exceeds the indicator on 01.10.2011 by 17,39%. Shareholders’ equity has grown only by 8,99% in the same period, and liabilities of the company have increased from UAH 5,257 mln up to UAH 10,863 mln, i.e. more than in twice. Despite the priority growth rates of liabilities the insurance company «Proxima» remains heavily overcapitalized, as evidenced by the ratio of shareholders’ equity to liabilities of the insurer (the autonomy ratio), which has amounted to 560,6% as of 01.10.2012.

2. In the period from 01.10.2011 to 01.10.2012 the liquid assets of the company have considerably increased. Thus, as of 01.10.2012 at the accounts of the insurer there was UAH 5,696 mln that is by 187,53% more than at the same date of 2011. As a result, IC «Proxima» has managed to improve its level of liquidity, as indicated by the growth of the liquidity ratio from 37,69% (on 01.10.2011) up to 52,44% (on 01.10.2012). But at the same time, this ratio remains lower than the average indicator of the market.

3. In the first three quarters of 2012 gross premiums of the insurer have significantly grown: from UAH 4,209 mln up to UAH 18,987 mln, i.e. more than in 4,5 times in comparison with the same period of past year. Insurance indemnities have amounted to UAH 3,344 mln according to the reports data of the 9 months of 2012. This indicator exceeds the indemnities of the 9 months of 2011 more than in 5 times, but the ratio of indemnities to gross premiums in 2012 has grown only by 2,57 p.p. in comparison with the period of 2011.

4. The financial result from operating activity of the insurer has amounted to UAH 5,620 mln in the 9 months of 2012 that exceeds the same indicator of the 9 months of 2011 almost in 19 times. According to the results of the three quarters of current year IC «Proxima», ALC has received net profit of UAH 4,885 mln. Therefore, the indicators ROS and ROE have amounted to 29,6% and 8,02%, respectively.

Considering a significant growth of gross premiums and profitability indicators of the insurer, the Agency notes a rapid increase in business of IC «Proxima», ALC and a possible transition of the company from the category of small insurers into the category of the averages in the nearest future.

Analytical service of RA «Expert-Rating»

Confirmation of IC «Proxima», ALC (english version) - 21.11.2012