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PRESS-RELEASE: RA «Expert-Rating» confirms the financial stability rating of «Insurance Company «Proxima», ALC at the level uaА


18/05/2012

PRESS-RELEASE

(Translation from Russian)

RA «Expert-Rating» confirms the financial stability rating of «Insurance Company «Proxima», ALC at the level uaА

 

May 17, 2012 RA «Expert-Rating» confirms the financial stability rating of the insurer «Insurance Company «Proxima», ALC at the level uaА according to the national scale following the results of the Company’s activity in the Q1 of 2012.

Table 1

Key performance indicators of

«Insurance Company «Proxima», ALC (th. UAH, %, p.p.)

Indicators

І quarter of 2012 (31.03.2012)

І quarter of 2011 (31.03.2011)

Change

Groqth rate, %

Total assets, th. UAH

64540,3

60827,6

3712,7

6,10%

Shareholders’ equity, th. UAH

55624,6

55743,7

-119,1

-0,21%

Total liabilities, th. UAH

8915,7

5083,9

3831,8

75,37%

Shareholders’ equity/Total liabilities ratio, %

623,89%

1096,48%

-472,58 p.p.

-

Cash and cash equivalents, th. UAH

3975,8

2028,2

1947,6

96,03%

Cash and cash equivalents/Total liabilities ratio, %

44,59%

39,89%

4,70 p.p.

-

Gross premiums, th. UAH

7607,3

1015,6

6591,7

649,04%

Reinsurers’ proportion in gross premiums, th. UAH

1649,6

879,4

770,2

87,58%

Reinsurers’ proportion in gross premiums/Gross premiums ratio, %

21,68%

86,59%

-64,90 p.p.

-

Insurance indemnities and reimbursements, th. UAH

3042

261,7

2780,3

1062,40%

Insurance indemnities and reimbursements/Gross premiums ratio for the period, %

39,99%

25,77%

14,22 p.p.

-

Financial result from operating activities, th. UAH

-197

76

-273

-359,21%

ROS, %

-2,59%

7,48%

-10,07 p.p.

-

Net profit (loss), th. UAH

-387,1

-211,2

-175,9

-83,29%

ROE, %

-0,70%

-0,38%

-0,32 p.p.

-

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

Confirming the rating, the Agency was guided by the following conclusions:

1. Assets of IC «Proxima» have increased by 6,1% during the last 12 months and on 31.03.2012 they have amounted to UAH 64,54 mln. Shareholders’ equity has slightly decreased just by 0,21% and, thus, as of 31.03.2012 it has amounted to UAH 55,625 mln. The company’s liabilities have grown by 75,37% in the same period. But, despite a significant increase in liabilities, IC «Proxima» remains the overcapitalized company, as indicated by the capital adequacy ratio, which has amounted to 623,89% on 31.03.2012.

2. Cash on accounts of the company has increased by 96,03% during the 12 months. Therefore, as of 31.03.2012 cash on the insurer’s accounts has amounted to UAH 3,976 mln. Taking into account a significant increase in the insurer’s liabilities, the company has managed to increase its liquidity from 39,89% up to 44,59% that remains slightly lower than the market average.

3. In the period from 01.01.2012 to 31.03.2012 IC «Proxima» has collected UAH 7,607 mln of gross premiums that is by 649,04% more, than in the same period of 2011. Insurance indemnities have grown by 1062,4% and have amounted to UAH 3,042 mln. At the same time, the ratio between indemnities and gross premiums has increased only by 14,22 p.p. in the Q1 of 2012 and, as a result, it has amounted to 39,99%. The Company has continued to increase its presence in insurance of legal entities. March 21, IC «Proxima» has signed a contract of insurance of collateral property with State Enterprise «Scientific Industrial Complex of Gas Turbine Construction «Zorya» — «Mashproekt». The cost of contract has amounted to UAH 3,3 mln.

4. Due to the increase in administrative and operating expenses the financial result from operating activities has amounted to UAH -197 th. IC «Proxima» has finished the Q1 of 2012 with a loss of UAH 387,1 th., resulting in ROE has amounted to -0,7%. In the Agency’s opinion, an obtained loss, reflected in the insurer’s statements in the Q1 of 2012, isn’t significant and doesn’t represent considerable risks for its reliability or financial stability.

As a whole, the company has demonstrated not bad indicators of liquidity and solvency. And the amount of gross premiums following the results of the first quarter of 2012 indicates the increase in insurance business of IC «Proxima».

 

Analytical service of RA «Expert-Rating»

Confirmation of «Insurance Company «Proxima», ALC (english version) - 17.05.2012

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