PRESS-RELEASE: The rating of PrJSC «IC «NOVA» is updated
10/12/2012
December 10, 2012 the rating committee of RA «Expert-Rating» has decided to confirm the financial stability rating of the insurer Private JSC «Insurance company «NOVA» at the level uaAA (a very high level of stability) according to the national scale. When confirming the rating of the insurer at such a high level, the Agency was based on the results of the Company’s activity in the 9 months of 2012.
Table 1
Key performance indicators of PrJSC «IC «NOVA»
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
70059,2
83912,3
-13853,1
-16,51%
Shareholders’ equity, th. UAH
36538,2
41691,3
-5153,1
-12,36%
Gross liabilities, th. UAH
33521
42221
-8700
-20,61%
Shareholders’ equity/Liabilities ratio (the capital adequacy ratio), %
109,00%
98,75%
10,26 p.p.
-
Cash and cash equivalents, th. UAH
27553
34425,8
-6872,8
-19,96%
Cash and cash equivalents/ Liabilities ratio, %
82,20%
81,54%
0,66 p.p.
-
Total gross premiums, th. UAH
34001,1
52409,3
-18408,2
-35,12%
Proportion of insurance premiums, belonged to the reinsurers, th. UAH
12189,9
9911,4
2278,5
22,99%
Insurance premiums, belonged to the reinsurers/Gross premiums ratio, %
35,85%
18,91%
16,94 p.p.
-
Insurance indemnities and reimbursements, th. UAH
18667,9
19635,3
-967,4
-4,93%
Insurance indemnities/Gross premiums ratio for the period, %
54,90%
37,47%
17,44 p.p.
-
Financial result from operating activities, th. UAH
1259,1
8737,3
-7478,2
-85,59%
ROS, %
3,70%
16,67%
-12,97 p.p.
-
Net profit (loss), th. UAH
-1501
6604,4
-8105,4
-122,73%
ROE, %
-4,11%
15,84%
-19,95 p.p.
-
Source: data of the Company, calculations by RA «Expert-Rating»
1. During the last 12 months the Company’s capitalization has reached to the excess level, as indicated by the ratio of shareholders’ equity to liabilities of the insurer, which has amounted to 109,00% on 01.10.2012. The growth of the autonomy ratio is explained by the priority growth rates of liabilities over shareholders’ equity. Thus, as of 01.10.2012 key balance sheet indicators have amounted to: shareholders’ equity – UAH 36,538 mln, liabilities – UAH 33,521 mln, assets of the insurer – UAH 70,059 mln.
2. Cash at the accounts of the Company has amounted to UAH 27,553 mln on 01.10.2012 that is by 19,96% less than the indicator at the same reporting date of 2011. Despite the reduction of liquid assets of the insurer the ratio of cash to liabilities has grown by 0,66 p.p. in the period from 01.10.2011 to 01.10.2012. Thus, the liquidity level of the Company has amounted to 82,20% on 01.10.2012 that exceeds the average indicator of the market.
3. The Company has collected UAH 34,001 mln of gross premiums in the 9 months of 2012 that is by 35,12% less than the same indicator of the 9 months of 2011. At the same time, the proportion of reinsurers in gross premiums of IC «NOVA» has grown by 22,99% according to the results of the 9 months of 2012, compared to the 9 months of last year. Insurance indemnities have amounted to UAH 18,668 mln in the first three quarters of current year, having decreased by 4,93% in comparison with the 9 months of 2011. But due to the decrease of gross premiums of the Company, the indemnities level has grown from 37,47% (according to the results of the 9 months of 2011) up to 54,90% (according to the 9 months of 2011), or by 17,44 p.p.
4. Due to a considerable increase in operating costs of the insurer, its financial result from operating activities has amounted to UAH 1,259 mln in the first three quarters of 2012 that is in 6,94 times less than the indicator of the same period of 2011. Net loss of the Company has amounted to UAH 1,501 mln in the 9 months of 2012. As a result of a significant decrease in indicators of operating and net profit, the indicators ROS and ROE have also decreased and have amounted to 3,7% and -4,11%, respectively, according to the results of the three quarters of 2012.
Despite a decrease in gross business and profitable indicators, Private JSC «IC «NOVA» remains a reliable company with an excess level of liquidity and capitalization that guarantees the company’s performance of all commitments to clients and partners.