Busin Insurance Company (Kyiv) collected UAH 919,000 of gross premiums in January-March 2020, which is 97.4% lower than the volume of premiums collected for the same period in 2019, the Standard-Rating Agency has said.
The agency updated the insurer’s credit and financial stability rating at uaAA+ on the national scale based on an analysis of its financial statements for the first quarter of 2020.
Receipts from individuals in the company increased almost eight times, to UAH 213,000, and from reinsurers, on the contrary, decreased by 98.87%, to UAH 289,000.
The agency said that the sharp decline in gross business volumes is due to the specific types of insurance that the company provides.
Insurance payments allocated to reinsurers in the first quarter of 2020 compared to the same period in 2019 decreased by 26.62%, from UAH 11.2 million to UAH 8.2 million. As a result of the outpacing rates of gross premium reduction compared with the volume of premiums sent to reinsurers, the coefficient of dependence on reinsurance grew to 892.79%.
The company paid customers UAH 2.117 million of insurance payments and indemnities for the relevant period of 2020, which is 50.90% less than the volume of payments for the first quarter of 2019. However, a larger reduction in gross premiums caused an increase in the level of payments to 230.53%.
The financial result from the operating activities of Busin insurer amounted to UAH 8.863 million, and net profit reached UAH 27.031 million.
The company’s assets grew 8.65 times, to UAH 2.694 billion, cash and cash equivalents by 22.88%, to UAH 115.980 million by March 31, 2020. The company’s net worth had a rise of 14.85%, to UAH 130.770 million, liabilities increased from UAH 197.379 million to UAH 2.563 billion.
Thus, at the end of the first quarter of 2020, the obligations of the insurer were covered by net worth by 5.10%, and cash covered 4.53% of the company’s liabilities.
Busin insurance company was registered in February 1993. It specializes in risk insurance.
