The National Bank of Ukraine canceled the licenses of six insurers: IC Mega-Garant JSC, IC Benefit ALC, IC Kastodi ALC, PA Europolis PJSC, IC Arma PJSC, IC Dobrobut i protection” and temporarily stopped the licenses for insurance activities of PJSC “IC “Universal policy”.
As stated in the message of the NBU on Friday, July 29, 2022, measures were applied to Mega-Garant, and on September 17, to ODO IC Benefit in the form of a temporary suspension of licenses, as insurers did not comply with mandatory monetary standards.
“The violations were not eliminated within the prescribed period, and the financial condition of Mega-Garant and Benefit remained critically unsatisfactory,” the regulator said.
With regard to Custody, Europolis, Arma, Dobrobut and Zashchita, the NBU explained the cancellation of licenses by establishing the facts of risky activities carried out by insurers.
“Thus, the facts of committing by insurance companies two or more violations of mandatory criteria and norms for capital adequacy and solvency, liquidity, profitability, asset quality and riskiness of operations have been established,” the regulator said.
It is specified that the decisions of the NBU Board in relation to these six were adopted on November 10 and entered into force on November 11.
As for the “Universal Policy”, as indicated by the National Bank, according to the results of the analysis of the statements for 9 months of 2022, it was found that the insurer violates the mandatory solvency and capital adequacy ratio.
“The insurer has a deadline for eliminating violations until December 12, 2022. This decision was made by the Committee for Supervision and Regulation of Non-Banking Financial Services Markets on November 11,” the regulator said in a statement.
The NBU also announced that it imposed a fine on ALC “IC” Arsenal Life “in connection with the establishment of the fact that the insurer carried out unlicensed activities based on the results of an unscheduled inspection.
The decision on the “Universal Policy” comes into force on November 12, on “Arsenal Life” – on November 14.
The insurance portfolio of PJSC IC Universalny Polis is formed by insurance of medical expenses (48.9%), property insurance and financial risks (28.7%). For 9 months of 2022, the insurer collected UAH 50.1 million of insurance payments, of them UAH 42.9 million – from reinsurers, and paid UAH 24.3 million of insurance payments.
IC “Mega-Garant” is included in the banking group of Megabank, which was withdrawn from the market, carried out activities in the non-life segment, including with OSGPO. In the first half of 2022, the insurer collected UAH 50.6 million of insurance payments (of which more than 80% are accounted for by OSGPO) and paid out UAH 9.2 million of insurance claims. The company ranked 21st among the largest companies operating in the OSGPO market, and has a 1.5% market share in terms of insurance premiums for this type of insurance.
ALC “IC” Benefit “formed a portfolio by insuring financial risks, cargo and luggage, land transport. For 9 months of 2022, the insurer collected UAH 1.8 million of insurance payments and paid out UAH 407 thousand of insurance claims.
ALC “IC “Custodi” operated in the non-life segment. The insurance portfolio was formed mainly due to the receipt of insurance premiums from legal entities (59%) and reinsurers (36%). In the structure of premiums for 9 months of 2022, property risks insurance prevailed ( 32%), cargo and luggage insurance (26%), financial risk insurance (24%) The level of payments for 9 months of 2022 was 0.02%: UAH 284 million of insurance payments were collected, of which UAH 101.8 million were from reinsurers , and paid 46 thousand UAH of insurance compensation.
PJSC “PA “Europolis” operated in the non-life segment. The insurance portfolio was formed mainly due to the receipt of insurance premiums from legal entities (76%) and reinsurers (18%). In the structure of premiums for 9 months of 2022, medical expenses insurance prevailed ( 29%), CASCO insurance (26%), cargo and luggage/cargo luggage insurance (25%) The level of payments for 9 months of 2022 was 7%: UAH 8.3 million of insurance payments were collected, of which from reinsurers – 1.5 million UAH, and paid 612 thousand UAH of insurance compensation.
PJSC IC “Arma” carried out activities in the non-life segment. The insurance portfolio was formed due to the receipt of insurance premiums from legal entities (82%), domestic reinsurance (18%), by types of railway transport insurance (52.5%), cargo and luggage insurance (14.0%), property insurance (12 .6%), CASCO (9.1%). For 9 months of 2022, the insurer collected UAH 79.1 million of insurance payments, of which UAH 13.9 million from reinsurers, and paid UAH 458.7 thousand of insurance claims.
ALC “IC “Dobrobut and Protection” carried out activities in the non-life segment. The largest volume of payments in the portfolio falls on property risks insurance (55%) and third party liability insurance (22%). For 9 months of 2022, the insurer collected 202, UAH 5 million of insurance payments, of which from reinsurers – UAH 130.4 million and paid UAH 109.6 thousand of insurance payments
