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PRESS-RELEASE: The rating of Private JSC UJSIC «ASKA» is confirmed at the level uaAA


13/09/2012

PRESS-RELEASE

(Translation from Russian)

The rating of Private JSC UJSIC «ASKA» is confirmed at the level uaAA

 

August 29, 2012 the rating committee of RA «Expert-Rating» has decided to confirm the rating of UJSIC «ASKA» at the level uaAA according to the national scale. Confirming the rating, the Agency was based on the results analysis of the Company’s activity in the I half of 2012.

Table

Key performance indicators of UJSIC «ASKA», th. UAH, %, p.p.

Indicators

I half of 2012 (30.06.2012)

I half of 2011 (30.06.2011)

Change

Growth rate, %

Total assets, th. UAH

411024

397340

13684

3,44%

Shareholders’ equity, th. UAH

267824

296356

-28532

-9,63%

Gross liabilities, th. UAH

143200

100984

42216

41,80%

Shareholders’ equity/Liabilities ratio (the capital adequacy ratio), %

187,03%

293,47%

-106,44 p.p.

-

Cash and cash equivalents, th. UAH

103621,7

81536,0

22085,7

27,09%

Cash and cash equivalents/ Liabilities ratio, %

72,36%

80,74%

-8,38 p.p.

-

Total gross premiums, th. UAH

388884

170227,6

218656,4

128,45%

Proportion of insurance premiums, belonged to the reinsurers, th. UAH

258827

68044,7

190782,3

280,38%

Insurance premiums, belonged to the reinsurers/Gross premiums ratio, %

66,56%

39,97%

26,58 p.p.

-

Insurance indemnities and reimbursements, th. UAH

79205,4

56403,3

22802,1

40,43%

Insurance indemnities/Gross premiums ratio for the period, %

20,37%

33,13%

-12,77 p.p.

-

Financial result from operating activities, th. UAH

-7545

-5892

-1653

-

ROS, %

-1,94%

-3,46%

-

-

Net profit (loss), th. UAH

-16888

-8603

-8285

-

ROE, %

-6,31%

-2,90%

-

-

Source: data of UJSIC «ASKA», calculations by RA «Expert-Rating»

1. Gross premiums of UJSIC «ASKA» have grown by 128,45% or by UAH 388,884 mln during the first 6 months of 2012. The Company has continued to confidently increase its share in the Ukrainian insurance market, demonstrating the growth of premiums, exceeding the average market indicators in several times. The Agency notes a significant strengthening of the insurer’s positions in the corporate segment. In the 2Q of 2012 UJSIC «ASKA» has won a number of tenders, the subjects of which have been transactions with a significant amount of premiums.

2. Sharp rise of the insurer’s gross business has resulted in the increase in the company’s liabilities. Gross liabilities of the company have increased from UAH 100,984 mln (on 30.06.2011) up to UAH 143,2 mln (on 30.06.2012). At the same time, the shareholders’ equity has decreased by 9,63% in the period from 30.06.2011 to 30.06.2012 and has amounted to UAH 267,824 mln at the end of the I half of 2012. Due to the growth of liabilities and the decrease in shareholders’ equity in the period from 30.06.2011 to 30.06.2012, the ratio of shareholders’ equity to liabilities has decreased from 293,47% down to 187,03%. Despite a significant decrease in the ratio of shareholders’ equity to liabilities, this ratio remains at a very high level, which, in the Agency’s opinion, provides an adequate level of solvency.

3. The financial result from operating activity of the insurer remains negative. The indicators of ROS and ROE have amounted to -1,94% and -6,31%, respectively. In the Agency’s opinion, the growing indemnities continue to have a negative impact on the financial result of the insurer. In the I half of 2012 the amount of indemnities has amounted to UAH 79,2 mln that is by 40,43% more than the indemnities in the I half of 2011. However, at the same period the level of payments has decreased by 12,77 p.p. that has resulted from a confident growth of gross business in the I half of 2012. In the Agency’s opinion, after a significant increase in gross business, UJSIC «ASKA» has prospects to return to the profitable activity by the end of 2012.

4. Cash at the company’s accounts has increased from UAH 81,5 mln up to UAH 103,6 mln, or by 27,09% in the period from 30.06.2011 to 30.06.2012. However, due to gross liabilities have grown the more faster rates, the ratio of liquid assets to liabilities of UJSIC «ASKA» has undergone to a slight correction, having decreased by 8,38 p.p. and has amounted to 72,36% on 30.06.2012. Despite a significant increase in liabilities, the insurer has managed to maintain the liquidity level close to the average market indicator.

Therefore, a key achievement of UJSIC «ASKA» in the I half of 2012 remains a significant increase in gross business. The successful strategy of the company, directed to the expansion of its presence in the corporate segment, will positively impact on the profitability of the insurer’s operations as well as on the company’s share in the Ukrainian market. TOP-management of the company has professionally coped with the growth of the insurer’s liabilities, keeping the level of liquidity and capitalization within the acceptable range that enable the Agency to maintain the credit rating of the company at a very high level.

 

Analytical service of RA «Expert-Rating»

Confirmation of UJSIC «ASKA» (english version) - 29.08.2012

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