July 5, 2013 at the meeting of the rating committee of RA «Expert-Rating» it was decided to confirm the financial stability rating of the insurer Private JSC «Insurance company «Alfa Insurance» (30968986) at the level uaAА according to the national scale. Such level of rating indicates a very high level of the financial stability of the insurer compared to other Ukrainian insurance companies. When confirming the rating, the Agency took into account the results of the Company’s activity in the Q1 of 2013.

Table

Key performance indicators of PrJSC «Alfa Insurance»

in the Q1 of 2013, th. UAH, %, p.p.

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

1. The Company has demonstrated the growth of income indicators in the Q1 of 2013. The financial result from operating activity has amounted to UAH 1,943 mln in the first three months of current year that is in 5,4 times higher than the same indicator in the Q1 of 2012. Net profit in the Q1 of 2013 has grown by 36,42% up to UAH 1,099 mln compared to the same period of 2012. As a result, indicators of profitability have slightly grown. According to the Q1 of 2013 ROS has amounted to 1,3%, and ROE – 0,94%.

2. In the period from 31.03.2012 to 31.03.2013 assets have grown by 2,97% up to UAH 236,681 mln. Shareholders’ equity has increased from UAH 108,927 mln up to UAH 116,439 mln, or by 6,9% in the same period. Gross liabilities have amounted to UAH 120,242 mln on 31.03.2013 that is by 0,57% less than the same indicator on 31.03.2012. As a consequence the ratio of shareholders’ equity to liabilities of the insurer has amounted to 96,84% as of the reported date of the Q1 of 2013 that demonstrates a high level of the Company’s capitalization. This level indicates a good solvency and financial stability of the insurer.

3. As of 31.03.2013 the liquid assets of the Company have amounted to UAH 126,209 mln that is by UAH 3,304 mln than on 31.03.2012. Taking into consideration the volume of gross liabilities as of the reported date of the Q1 of 2013, the ratio of cash to liabilities of the insurer has grown by 3,34 p.p. up to 104,96% in the period from 31.03.2012 to 31.03.2013. This value indicates an excessive reserve of the Company’s liquidity.

4. In the Q1 of 2013 IC “Alfa Insurance” has continued increasing its presence in the segment of insurance services for legal entities. The Company has conducted the contract of voluntary medical insurance (VMI) and voluntary accident insurance and voluntary health insurance in case of illness with “Television radio company Ukraine”, LLC. Besides, IC “Alfa Insurance” has been accredited by PJSC “Prominvestbank” that has enabled the insurer to provide its insurance services of CASCO, railway, water and air transport, special equipment and agricultural machinery, real estate, equipment, goods in turnover from accident to clients throughout the whole regional network of PJSC "Prominvestbank".

As a result, IC “Alfa Insurance” has managed to achieve the increase in gross business by 40,55% and to collect UAH 149,924 mln of gross premiums in the Q1 of 2013.

Having analyzed the insurer’s activity, RA “Expert-Rating” emphasizes the increase in indicators of capitalization and liquidity, the increase in gross business and the considerable growth of profitable indicators. The above factors indicate the reliability and a high level of financial stability of Private JSC “Alfa Insurance”.

Analytical service of RA «Expert-Rating»

Confirmation of IC “Alfa Insurance” (english version) - 05.07.2013