PRESS-RELEASE: Rating of JSC IC «BUSIN» is confirmed at the level uaAA
18/05/2012
PRESS-RELEASE
(Translation from Russian)
RatingofJSCIC «BUSIN» is confirmed at the leveluaAA
May 16, 2012 RA «Expert-Rating» confirms the financial stability rating of Private JSC IC «BUSIN» at the level uaAAaccording to the national scale. The rating has been confirmed following the results of the Q1 of 2012.
Table
Key performance indicators of JSC IC «BUSIN»
Indicators
1 quarter of 2012 (31.03.2012)
1 quarter of 2011 (31.03.2011)
Change
Growth rate, %
Total assets, th. UAH
93232,4
80532,9
12699,5
15,77%
Shareholders' equity, th. UAH
40724,1
39121,3
1602,8
4,10%
Total liabilities, th. UAH
52508,3
41411,6
11096,7
26,80%
Shareholders' equity/ Total liabilities ratio, %
77,56%
94,47%
-16,91 p.p.
-
Cash and cash equivalents, th. UAH
41524,6
33253,6
8271
24,87%
Cash and cash equivalents/ Total liabilities ratio, %
79,08%
80,30%
-1,22 p.p.
-
Gross premiums, th. UAH
17127,5
20159,4
-3031,9
-15,04%
Reinsurer’s proportion in gross premiums, th. UAH
6145,6
20661,8
-14516,2
-70,26%
Reinsurer’s proportion in gross premiums/ Gross premiums ratio, %
35,88%
102,49%
-66,61 p.p.
-
Insurance indemnities and reimbursements, th. UAH
11776,3
789,7
10986,6
1391,24%
Insurance indemnities and reimbursements / Gross premiums ratio for the period, %
68,76%
3,92%
64,84 p.p.
-
Financial result from operating activities, th. UAH
-6315,8
3506
-9821,8
-280,14%
ROS, %
-36,88%
17,39%
-54,27 p.p.
-
Net profit (loss), th. UAH
-6775,9
3223,9
-9999,8
-310,18%
ROE, %
-16,64%
8,24%
-24,88 p.p.
-
Source: The Company’s data; calculations by RA «Expert-Rating»
Key conclusions on the activity analysis of JSC IC «BUSIN» in the Q1 of 2012:
1. As of 31.03.2012 the insurer’s assets have amounted to UAH 93,232 mln that is by UAH 12,7 mln or by 15,77% more, than the same indicator on 31.03.2011. In the period from 31.03.2011 to 31.03.2012 shareholders’ equity of the company has increased by 4,1% and, thus, on 31.03.2012 its amount has equaled to UAH 40,724 mln. At the same time, total liabilities of the company have increased by 26,8% in the same period and on 31.03.2012 its amount has equaled to UAH 52,508 mln. Therefore, the shareholders’ equity/liabilities ratio has amounted to 77,56% that indicates a good level of the company’s capitalization.
2. Cash on accounts of IC «BUSIN» has amounted to UAH 41,525 mln as of 31.03.2012 that is by 24,87% more than the same indicator on 31.03.2011. In the period from 31.03.2011 to 31.03.2012 the liquidity ratio has decreased from 80,3% down to 79,08%, i.e. by 1,22 p.p. This liquidity corresponds to a good level and according to the Agency’s estimations it exceeds the average of the market at least by 5 p.p.
3. JSC IC «BUSIN» has collected UAH 17,128 mln of gross premiums in the Q1 of 2012 that is by 15,04% less than the same indicator in the Q1 of 2011. This tendency reflects the trend of slowing the economic growth of Ukraine in the Q1 of 2012. At the same time, reinsurers’ proportion in gross premiums of the insurer has decreased by 70,26% in the Q1 of 2012. Insurance indemnities of IC «BUSIN» has amounted to UAH 11,776 mln according to the results of the Q1 of 2012 that exceeds the same indicator of the Q1 of 2011 almost in 15 times. This rise of payments has been caused by the onset of the insurance event. Since the company mostly works with large risks, peak burdens of payments within one quarter are a part of its business characteristics and belong to the ordinary events.
4. Due to the increase in insurance indemnities of IC «BUSIN» the financial result from operating activities has amounted to UAH -6,316 mln at the end of the Q1 of 2012 that has resulted in the negative return on sales (-36,88%). JSC IC «BUSIN» has finished the Q1 of 2012 with a loss of UAH 6,776 mln. This result has no negative impact on the financial stability of the insurer and on its credit risk, because IC «BUSIN» maintains good indicators of liquidity and solvency.