News feed

Інформаційні партнери:

 

 

 

 

 


Financial strength rating has been assigned to IC "Proxima"at the level uaВВВ+ according to national scale


05/10/2011

October  5, 2011 RA "Expert-Rating" has announced the assignment of the financial strength rating of the insurer PJSC IC "Proxima" at the level uaBBB+ (sufficient strength level) according to national scale.

According to the results of rating research the following main conclusions can be drawn:
1. IC "Proxima" belongs to small insurers with total premiums a year amounting to UAH 10 m. The Agency assess the market share of IC "Proxima" as 0.1% of total market of classic insurance in Ukraine. Change of shareholders in late 2010 led to increase of gross premiums. According to Agency the shareholders are able to provide IC "Proxima" with incoming business.
2. RA "Expert Rating" assesses diversification per types of insurance as close to satisfactory. At the end of 2010 IC "Proxima" received approximately 50% of premiums from freights and luggage insurance, 13.3% – from property insurance, 10.94% – from insurance of financial risks. Level of customer diversification has also been found as close to satisfactory. At the end of 2010 the Company received from the largest client 55.75 % of gross premiums, from 5 top clients – 83.48 %. The Agency recommends SC "Proxima" to deepen customer diversification for improving financial stability rating.
3. The Agency recognizes as sufficient the quality of insurer's assets. At the beginning of 2011 investments in shares made about 95% of insurer's earning assets, part of these investments is recognized by the Agency as highly liquid. 5.3% of insurer's assets corresponded to funds on current and deposit accounts in banks. The quality of reinsurance coverage of IC "Proxima" cannot be assessed, which is a common problem in Ukraine due to small number of companies with financial stability ratings.
4. The new shareholders of IC "Proxima", - IFBC LTD and FUTURE RESERVE LTD are non-resident
companies, which according to the Agency can provide a significant level of external support, as well as promote the growth of gross premiums of the insurer in the future. At the same time, the Agency reminds that IC "Proxima" is considered an overcapitalized company. As of early 2011, Company's equity/assets ratio was almost 90%, i.e. at the present time the Company does not require additional capital from shareholders.

Rating report in details (english version) - 05.10.2011

Share on livejournal.com Share on twitter.com