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Rating conclusion: The credit rating uaA is assigned to Private JSC «Kiev Insurance House»


04/07/2012

Rating conclusion

(Translation from Russian)

The credit rating uaA is assigned to Private JSC «Kiev Insurance House»

 

June 27, 2012 at the meeting of rating committee it was decided to assign the credit rating/the financial stability rating to Private JSC «Insurance company «Kiev insurance house» at the level uaA according to the national scale. Assigning the investment level of rating, the Rating committee was guided by the analysis of the Company’s activity in the last reporting period.

Table

Key performance indicators of Private JSC «Kiev insurance house»

in the Q1 of 2012, th. UAH, p.p., %

Indicators

QI of 2012 (31.03.2012)

QI of 2011 (31.03.2011)

Change

Growth rate, %

Total assets, th. UAH

56944

27713

29231

105,48%

Shareholders’ equity, th. UAH

36668

9171

27497

299,83%

Gross liabilities, th. UAH

20276

18542

1734

9,35%

Shareholders’ equity/Liabilities ratio (the capital adequacy ratio), %

180,84%

49,46%

131,38 p.p.

-

Cash and cash equivalents, th. UAH

36911

18198

18713

102,83%

Cash and cash equivalents/ Liabilities ratio, %

182,04%

98,14%

83,90 p.p.

-

Total gross premiums, th. UAH

5072,4

18652,7

-13580,3

-72,81%

Proportion of insurance premiums, belonged to the reinsurers, th. UAH

46,3

16340,8

-16294,5

-99,72%

Insurance premiums, belonged to the reinsurers/Gross premiums ratio, %

0,91%

87,61%

-86,69 p.p.

-

Insurance indemnities and reimbursements, th. UAH

776,3

609,2

167,1

27,43%

Insurance indemnities/Gross premiums ratio for the period, %

15,30%

3,27%

12,04 p.p.

-

Financial result from operating activities, th. UAH

4680,5

1054,5

3626

343,86%

ROS, %

92,27%

5,65%

86,62 p.p.

-

Net profit (loss), th. UAH

4552

1023,4

3528,6

344,79%

ROE, %

12,41%

11,16%

1,26 p.p.

-

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

 

1. In the Q1 of 2012 gross premiums of IC «KIH» have decreased by 72%. The insurer has collected UAH 5,072 mln of gross premiums in the first three months of 2012 and UAH 18,652 mln in the same period of the previous year. The decrease in gross business is related to changing conditions of key markets, where the insurer operates. The rating research has shown that the decrease of gross premiums hasn’t impacted on the profitability of the Company’s activity and on the dynamics of its assets quality.

2. Net profit has grown by 344,8% in the Q1 of 2012 compared to the Q1 of 2011. The Company has earned UAH 4,552 mln in the first three months of 2012 and has shown ROE at the level 12,41%. The financial result from operating activities has grown by 343,9% and has amounted to UAH 4,68 mln in the first three months of 2012.

3. Due to the decrease of gross premiums in the Q1, liabilities of the insurer has decreased by 9,35% in the period from 31.03.2011 to 31.03.2012. However, the ratio of shareholders’ equity to liabilities of the Company has increased due to the growth of shareholders’ equity by 300%. As of 31.03.2012 shareholders’ equity of the Company has been by 80,84% more, than its liabilities that has indicated a good level of equity and a reserve of solvency.

4. One of the reasons for the high rating of the Company has become a significant increase in liquid assets by 102,83% in the period from 31.03.2011 to 31.03.2012; at the beginning of the Q2 cash at the Company’s accounts and cash equivalents have amounted to UAH 36,911 mln that has been by 82% more than the insurer’s liabilities. The liquidity level of IC «KIH» is characterized by the Agency as unprecedented high: on 31.03.2012 it has exceeded approximately in 2,5 times the average market.

Therefore, key factors, which maintain the high credit rating of IC «KIH» remain: good level of capitalization, high liquidity against the background of the profitable activity and the high quality of assets.

 

Analytical service of RA «Expert-Rating»

Rating conclusion of Private JSC «Insurance company «Kiev insurance house» (english version) - 27.06.2012

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