PRESS-RELEASE: The rating of PrJSC «Insurance company «Persha» is updated at the level uaA

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PRESS-RELEASE: The rating of PrJSC «Insurance company «Persha» is updated at the level uaA

04/12/2012

December 04, 2012 at the meeting of the rating committee of RA «Expert-Rating» confirms the financial stability rating of Private JSC «Insurance company «Pershа» at the level uaA according to the national scale. Making decision of confirming the rating, the Agency was guided by the results of the Company’s activity in the 9 months of 2012.

Table 1

Key performance indicators of PrJSC «IC «Persha» in the 9 months of 2012

Indicators	9 months of 2012 (01.10.2012)	9 months of 2011 (01.10.2011)	Change	Growth rate, %
Total assets, th. UAH	101506	79397	22109	27,85%
Shareholders’ equity, th. UAH	43433	29983	13450	44,86%
Gross liabilities, th. UAH	58073	49414	8659	17,52%
Shareholders’ equity/Liabilities ratio (the capital adequacy ratio), %	74,79%	60,68%	14,11 p.p.	-
Cash and cash equivalents, th. UAH	46464	25075	21389	85,30%
Cash and cash equivalents/ Liabilities ratio, %	80,01%	50,74%	29,26 p.p.	-
Total gross premiums, th. UAH	115296	97889	17407	17,78%
Proportion of insurance premiums, belonged to the reinsurers, th. UAH	31903	39914	-8011	-20,07%
Insurance premiums, belonged to the reinsurers/Gross premiums ratio, %	27,67%	40,77%	-13,10 p.p.	-
Insurance indemnities and reimbursements, th. UAH	23167	18824	4343	23,07%
Insurance indemnities/Gross premiums ratio for the period, %	20,09%	19,23%	0,86 p.p.	-
Financial result from operating activities, th. UAH	2708	4601	-1893	-41,14%
ROS, %	2,35%	4,70%	-2,35 p.p.	-
Net profit (loss), th. UAH	675	1586	-911	-57,44%
ROE, %	1,55%	5,29%	-3,74 p.p.	-

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

1. In the period from 01.10.2011 to 01.10.2012 the Company’s assets have grown from UAH 79,397 mln up to UAH 101,506 mln, or by 27,85%. Gross liabilities have increased by 17,52% and have amounted to UAH 58,073 mln on 01.10.2012, shareholders’ equity – by 44,86% and has amounted to UAH 43,433 mln as of the reporting date of the 9 months of 2012. Considering the shareholders’ equity of the insurer has been growing faster than liabilities, the level of capitalization has increased by 14,11 p.p. in the last 12 months and has amounted to 74,79% on 01.10.2012.

2. Cash at the Company’s accounts has increased by 85,30%: from UAH 25,075 mln up to UAH 46,464 mln in the period from 01.10.2011 to 01.10.2012. Due to a significant growth of liquid assets the ratio of cash to liabilities has grown by 29,26 p.p. and has amounted to 80,01% on 01.10.2012. This ratio indicates that the insurer possesses a sufficient level of liquidity.

3. Private JSC IC «Persha» has collected UAH 115,296 mln of gross premiums during the 9 months of 2012 that is by 17,78% more than the same indicator of the 9 months of 2011. This growth indicates the increase in gross business of the insurer. Insurance indemnities have amounted to UAH 23,167 mln in the first three quarters of current year that exceeds the same indicator of the 9 months of 2011 by 23,07%.

4. The growth of administrative and sales costs has resulted in the decrease in the financial result from operating activity by 41,14% in the same period and has amounted to UAH 2,708 mln. As a result, net profit of IC «Persha» has amounted to UAH 675 th. in the first three quarters of 2012. Indicators ROS and ROE have amounted to 2,35% and 1,55%, respectively.

Having analyzed the Company’s activity in the 9 months of 2012, the Agency concludes that against the background of sufficient level of capitalization, liquidity and increase in gross business the level of financial stability of Private JSC IC «Persha» is considered as high.

Analytical service of RA «Expert-Rating»

Confirmation of Private JSC «Insurance company «Pershа» (english version) - 04.12.2012