On October, 02nd, 2012 at the meeting of RA Expert Rating rating committee the decision was taken on the confirmation of Private Joint-Stock Company Insurance Company NOVA (USREOU code 31241449) rating at the level uaAA (very high reliability level) on the national scale. When taking the decision on the confirmation of insurer rating at such high level, the Agency was guided by Company work results in H1 2012.

Table 1

Key performance indicators of PrJSC NOVA

in H 1 2012, UAH th., %, p.p.

Source: Company data, RA Expert Rating calculations

1. For the last 12 months insurance company NOVA increased the level of capitalization that is proved by the dynamics of Shareholders’ equity/liabilities ratio of the insurer which has grown on 21,66 p.p. and as of 30.06.2012 has constituted 106,28 %. Therefore, PrJSC IC NOVA has passed to the category of overcapitalized companies. The growth of the given indicator became consequence of 17,96 % reduction of insurer liabilities during the period from 30.06.2011 to 30.06.2012 against 3,05 % growth of company Shareholders’ equity in the same period.

2. Company cash means as of 30.06.2012 have constituted UAH 23,177 million, that is on 38,11 % less than the indicator of 2011. Thus, the ratio cash means/liabilities of the insurer also decreased from 83,81 % to 63,22 % during the period from 30.06.2011 to 30.06.2012. But the given indicator, against excessive capitalization, provides for sufficient level of Company liquidity for repayment of the obligations to insured.

3. In H1 2012 IC NOVA collected UAH 25,748 million of gross premiums that is on 26,73 % less than in H1 2011. At the same time, insurance payments decreased from UAH 13,274 million to UAH 12,994 million. But in H1 2012 the growth of payouts has been noticed on such types of insurance: HULL INSURANCE - on 16,9 %, personal types of insurance - by 10 %.

In August, 2012 the insurance company NOVA has signed the agreement of mandatory reinsurance of property risks for the years 2012-2013 which covers engineering, construction risks, equipment breakdown, production interruption and liability at carrying out civil and erection works, and also insurance of cargoes. The international insurance and reinsurance broker Willis Polska S.A (Willis Group) is the participant of the agreement. Agreement value has constituted UAH 80 million per each insurance item (property risks) and UAH 20 million per each cargo transportation operation.

4. The financial result from operational activity of the insurer for H1 2012 has constituted UAH 1,253 million, this is on 72,77 % less than for the same period of 2011. In the same period Company net profit has constituted UAH 920,7 thousand, that is on 66,15 % less, than in the same period of 2011. ROS and ROE indicators following the results of H1 2012 also decreased by 8,23 p.p. and 4,83 p.p. accordingly. That is how the company reacted to economic slowdown. According to the Agency, the found trends will not influence insurer strength as company activity remains profitable.

Overcapitalization of PrJSC IC NOVA, high level of reinsurance and positive value of return rates in H1 2012, according to the Agency, confirm the high rating of the insurer.

Analytical service of RA Expert-Rating

Confirmation of Private Joint-Stock Company Insurance Company NOVA (english version) - 02.10.2012