PRESS-RELEASE: The rating if PrJSC «Ukrainian transport insurance company» is confirmed at the level uaA
27/12/2012
December 27, 2012 at the meeting of the rating committee of RA «Expert-Rating» it was decided to confirm the financial stability rating of Private JSC «Ukrainian transport insurance company» at the level uaA. When confirming the rating, the Agency was guided by the analysis results of the Company’s activity in the 9 months of 2012.
Table 1
Key performance indicators of PrJSC «Ukrainian transport insurance company» in the 9 months of 2012, th. UAH, p.p., %
Indicators
9 months of 2012 (01.10.2012)
9 months of2011 (01.10.2011)
Change
Growth rate, %
Total assets, th. UAH
219213,6
192670,3
26543,3
13,78%
Shareholders’ equity, th. UAH
161452,4
152215,3
9237,1
6,07%
Gross liabilities, th. UAH
57761,2
40455
17306,2
42,78%
Shareholders’ equity/Liabilities ratio (the capital adequacy ratio), %
279,52%
376,26%
-96,74 p.p.
-
Cash and cash equivalents, th. UAH
62708,7
43831,8
18876,9
43,07%
Cash and cash equivalents/ Liabilities ratio, %
108,57%
108,35%
0,22 p.p.
-
Total gross premiums, th. UAH
51765,8
31469,8
20296
64,49%
Proportion of insurance premiums, belonged to the reinsurers, th. UAH
4726,8
5262,9
-536,1
-10,19%
Insurance premiums, belonged to the reinsurers/Gross premiums ratio, %
9,13%
16,72%
-7,59 p.p.
-
Insurance indemnities and reimbursements, th. UAH
9552,6
7133
2419,6
33,92%
Insurance indemnities/Gross premiums ratio for the period, %
18,45%
22,67%
-4,21 p.p.
-
Financial result from operating activities, th. UAH
9931,8
3330,5
6601,3
198,21%
ROS, %
19,19%
10,58%
8,60 p.p.
-
Net profit (loss), th. UAH
4950,9
651,5
4299,4
659,92%
ROE, %
3,07%
0,43%
2,64 p.p.
-
Source: data of the Company, calculations by RA «Expert-Rating»
1. As of 01.10.2012 Private JSC «Ukrainian transport insurance company» possesses an excess level of capitalization, as indicated by the ratio of shareholders’ equity to liabilities, which has amounted to 279,52% as of the reporting date of the 9 months of 2012. Despite the faster growth rates of liabilities (42,78%) over shareholders’ equity (6,07%) during the last 12 months, the Company remains very overcapitalized. Assets of PrJSC “UTIC” have amounted to UAH 219,214 mln on 01.10.2012 that is by 13,78% more than the same indicator as of 01.10.2011.
2. The liquidity level of the insurer remains excessive, as indicated by the ratio of cash to liabilities of the Company, which has amounted to 108,57% on 01.10.2012. Despite a significant increase in liabilities the high liquidity ratio is explained by a significant growth of cash at the Company’s accounts. Thus, liquid assets have amounted to UAH 62,709 mln on 01.10.2012 that is by UAH 18,877 mln or by 43,07% more than the same indicator on 01.10.2011.
3. According to the results of the 9 months of 2012 the Company has collected UAH 51,766 mln of gross premiums that is by 64,49% higher than the indicator of the 9 months of 2011. AT the same time, the proportion of reinsurers in gross premiums of the insurer has decreased by 10,19%. The trend of reduction in the reinsurance portfolio is already the market trend according to the activity results of the Ukrainian market in the 9 months of 2012. Insurance indemnities of IC “UTIC” have amounted to UAH 9,533 mln in the first three quarters of 2012, having increased by 33,92%, compared to the same indicator in the same period of 2011.
4. The financial result from operating activity of the insurer has amounted to UAH 9,932 mln in the 9 months of current year that is almost in three times higher than the financial result of the 9 months of 2011. Therefore, the indicator ROS has grown from 10,58% up to 19,19%, or by 8,6 p.p. Net profit of PrJSC “UTIC” has amounted to UAH 4,951 mln according to the results of the first three quarters of 2012 that is in 7,6 times more than profit of the 9 months of 2011.
Proceeding from the analysis of the financial statements of the insurer, the Agency emphasizes excess levels of capitalization and liquidity, significantly increased indicators of profitability and growth of gross business that indicates the trend of the further development of the Company and the increase in its proportion in the domestic insurance market.