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The small insurance companies continue to recover after the recession Actualization of the rating for JS IC ‘MIR’


01/09/2010

On 01 September 2010 following the results of 1H 2010 ‘Expert-rating’ Rating Agency confirmed the credit rating of JS IC ‘MIR’ at the level uaAА- on national scale. The rating uaAА- means very high probability of that the company will withstand the influence of adverse factors in the future.

In confirming the credit rating of JS Insurance Company ‘MIR’, the Agency was guided by the following
conclusions:
1. As of 01.07.2010 the assets of the Company have grown by 9,07 %, compared to 01.07.2009, and
shareholders equity by 1,44 %. Therefore shareholders equity/assets ratio decreased from 94 to 87,4%. Considering that the Company was overcapitalized, such negative dynamics of shareholders equity/assets ratio could in no way affect the level of solvency of IC ‘Mir’. As of 01.07.2010, IC ‘Mir’ possessed stock of ready assets in the form of deposit accounts balance in the amount of 3,081 mln UAH against 3,6 mln UAH of liabilities.
2. IC ‘Mir’ completed the first half of the year 2010 with 723,1 th. UAH of loss. It should be reminded that in the first half of the year 2009 the Company obtained net profit at the level 1,2 mln. UAH. In 2010 the loss of IC ‘Mir’ arose due to the increased indemnities. The indemnities for the first half of the year 2010 have grown on 170% in comparison with the similar period of last year, and in comparison with the indemnities of the first half of the year 2007 the growth made almost 400 %. The ratio between the indemnities and the collected premiums for the first 6 months of 2010 and 2009 grew by 34,17 percentage points. The tendency of indemnities growth met the general market trends in the retail companies of Ukraine. The amount of the loss 723 th. UAH, generated by IC ‘Mir’ for the first half of the year 2010, is not critical for the solvency and liquidity of the Company.
3. The volume of total business of IC ‘Mir’ for the first half of the year 2010 in comparison with the similar period of last year has grown on 43 %. The company already reached the pre-crisis volume of gross premiums of the year 2008 that, undoubtedly, says about fast restoration of IC ‘Mir’ market positions at pre-crisis level. It is indicative that growth rate of IC ‘Mir’ gross premiums was above the mean market values.
Thus, following the results of the first half of the year 2010 in IC ‘Mir’ the situation was clearly observed
when the total Company business was quickly restoring, exceeding the mean market growth. Thus indemnities grew faster than premiums. Against this difference in growth rates the Company generated insignificant losses. The analytical service of Agency believes that under redundant capitalization and current stock of ready assets the strategy of expansion in the market, realized by TOP - management of IC ‘Mir’, does not entail any credit risk for the customers of the Company.

Analytical service of the Rating Agency ‘Expert-Rating’

Confirmation of JS IC MIR rating — 01.09.2010

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