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Press-release (Translation from Russian) RA “Expert-Rating” confirms financial stability rating of insurance company “Busin” at the level uaAA


22/09/2011

September 1, Rating agency “Expert-Rating” has confirmed stability rating of JSC “IC “Busin” according to the national scale — uaAА (this rating corresponds the international scale at the level ВВВ). (see table)

When confirming the rating of Private JSC “IC “Busin”, Rating agency “Expert-Rating” was guided by the following conclusions:
1. The gross premium volume of the Company has decreased by 4,62% in the 1 half of 2011 in comparison to the same period of previous year. At the same time the gross business volume of IC “Busin” has increased 1,7 times in comparison to the 1 half of the pre-crisis 2007. The reduction of business volume in 2011 can be considered insignificant in comparison to 2010. According to Agency’s
estimates IC “Busin” still occupies a significant market share of aviation insurance in Ukraine, and a slight fall in gross premiums is caused by sectoral correction.
2. In the 1 half of 2011 the activity of IC “Busin” remained profitable. The company has received net profit of UAH 7,684 m for the analyzed period that is by 34% less, than for the same period of 2010, but much higher than in 2007-2009. ROE of IC “Busin” remained quite high (17,63%) in the 1 half. When taking into consideration this indicator, it should be noted that the calculation was carried out on semi-annual database, i.e. on annual database ROE constituted 35,26% in the 1 half of 2011, that is
considerably higher than the rate of return accepted in the Ukrainian market at present. Despite difficult
economic conditions in Ukraine, business of IC “Busin” remained attractive for investors.
3. At the beginning of the 2 half of 2011 the Company management continued to conduct conservative financial policy. Shareholders’ equity/Assets ratio constituted 52,56%, cash and cash equivalents met 86,5% of Company liabilities as of 01.07.2011. On the background of profitable activity, high profitability and slight decline in total paid out indemnities the Company, in Agency’s opinion, could allocate resources in riskier assets. But it is a high quality of assets, surplus of solvency and good liquidity provide an opportunity to IC “Busin” to maintain one of the highest financial stability ratings
according to the national scale.

Analytical department of RA Expert-Rating

Rating confirmation of JSC "IC "Busin" (engl.) — 22.09.2011

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