November 23, 2012 the rating agency «Expert-Rating» has decided to confirm the rating of IC «MIR» at the level uaAA- according to the national scale. Confirming the rating at such a high level, the Agency was guided by the results of the Company’s activity in the 9 months of 2012.

Table 1

Key performance indicators of PJSC «IC «MIR»

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

Key conclusions on the analysis of the activity of PJSC «Insurance company «MIR» in the 9 months of 2012:

1. As of 01.10.2012 IC «MIR» like before is an unprecedented overcapitalized company, as indicated by the ratio of shareholders’ equity to liabilities, which has grown from 227,72% up to 1041,39% in the period from 01.10.2011 to 01.10.2012. Gross liabilities have decreased by 71,7% in the same period and as of the reporting date of the 9 months of 2012 its volume has amounted to UAH 9,521 mln, while shareholders’ equity of the insurer has increased from UAH 76,615 mln up to UAH 99,149 mln, or by 29,41%. Significant changes in the balance sheet indicators have become the reason for such a excessive level of the Company’s capitalization. Assets of the insurer have remained almost unchanged and have amounted to UAH 108,67 mln on 01.10.2012.

2. Besides an excess overcapitalization of the insurer, the Company also possesses an excess level of liquidity, as indicated by the ratio of cash to liabilities, which has amounted to 103,31% as of 01.10.2012. In the period from 01.10.2011 to 01.10.2012 the liquidity ratio has considerably grown: from 20,32% up to 103,31%, or by 83 p.p. The reason for that was the increase in cash at the accounts of the insurer (43,91%) and the significant decrease in liabilities. Thus, liquid assets have amounted to UAH 9,836 mln on 01.10.2012, and liabilities – UAH 9,521 mln, as it was indicated above.

3. In the first three quarters of 2012 the gross premiums have amounted to UAH 18,393 mln, having decreased only by 2,88%, compared to the indicator of the same period of 2011. At the same time, the proportion of reinsurers in gross premiums of the insurer in the 9 months of 2012 has decreased little more than in 10 times, compared to 2011. The indemnities level has also decreased according to the results of the three quarters of 2012. Thus, the indemnities have amounted to UAH 1,85 mln in the 9 months of 2012 that is by 11,92% less than the same indicator of the 9 months of 2011.

4. Profitability indicators have demonstrated a significant growth at the expiration of 9 months of 2012. The financial result from operating activity of the insurer has amounted to UAH 20,866 mln in the three quarters of 2012, having increased by 71,79%, compared to the 9 months of 2011. Net profit of IC «MIR» has amounted to UAH 15,904 mln that has exceeded net profit of the 9 months of 2011 by 38,71%.

The Agency notes rather high profitability indicators of IC «MIR» as well as good levels of capitalization and liquidity that provide the company with a high rating.

Analytical service of RA «Expert-Rating»

Confirmation of IC «MIR» (english version) - 23.11.2012