On June 21, 2023 Rating Committee of Expert-Rating RA has decided to withdraw the financial stability (reliability) rating of the insurer Alfa Insurance PJSC (Kyiv), according to the website of RA.
As it was reported, the rating committee of RA “Expert-Rating” has decided on December 23, 2022 to suspend the rating of the company, noting that it may be restored if the license of the company has been renewed.
Earlier, on December, 5 of 2022, the National Bank of Ukraine has applied to PrJSC IC “Alfa Insurance” a measure of influence in the form of temporary suspension of the license to provide financial services.
The NBU also noted that these measures were applied in connection with the company’s non-compliance with the requirements of the Regulation on licensing and registration of financial service providers and the conditions of their activities to provide financial services …, namely the requirements for business reputation of financial service providers. The company must eliminate the violations by December 5, 2023.
Later, the Motor (Transport) Insurance Bureau of Ukraine reported on its website that due to the temporary suspension of IC “Alfa Insurance” license for compulsory insurance of civil liability of owners of vehicles (MTPL), it lost the right to enter into new contracts.
As it was reported, IC “Alfa Insurance” was founded in 2000. It offers a universal portfolio of services, including comprehensive programs for protection of business interests and a wide range of insurance products for individuals
June 12 Expert-Rating rating agency decided to withdraw the financial stability rating of insurer PJSC Insurance Company Krajina (Kiev), according to the website of RA.
It is also noted that the reason for this decision is the termination of the contract.
As earlier reported, Expert Rating RA updated rating of IC Krajina at the level uaAA+ according to the national scale for the first quarter of 2023.
According to the agency, the proportion of insurance premiums of the company, owned by reinsurers, has grown by 32,2%, and their share in the structure of gross premiums has increased by 2,32 p.p., up to 4,32%.
The company has carried out UAH 1 mln of insurance payments for the first quarter of 2023, or by 32,01% less than in the same period last year, but the ratio between payments and gross premiums has grown by 5,33 p.p., to 53,49%.
Shareholders’ equity of the company has decreased by 10,38%, to UAH 139,43 mln, and gross liabilities have decreased by 3,06% down to UAH 175,91 mln, cash and cash equivalents have decreased by 5,32%, to UAH 58,82 mln, and the level of the insurer’s liabilities, as of 30 March, 2023 has not changed significantly and, as of the beginning of the Q2 2023, has amounted to 33,44%.
Herewith the RA notes, that as of the reporting date the insurer has formed a portfolio of current financial investments in government bonds in the amount of UAH 31,296 mln that has positively influenced the provision of liquid assets. In the aggregate, liquid assets (cash and OVGZ) covered 51,23% of liabilities of the insurer.
IC Krajina has been working in the insurance market of Ukraine since 1994. It has licenses for 23 types of insurance. The regional network of the insurer consists of 98 objects throughout the country.
December 23, 2022 Expert-Rating RA rating committee decided to suspend the financial stability (reliability) rating of insurer PJSC Insurance Company “Alfa Insurance” (Kiev), according to the website of RA.
It also noted that the rating may be restored if the license of the company will be renewed.
As reported, the National Bank of Ukraine on December 5, 2022 has applied to PJSC IC “Alfa Insurance” a measure of influence in the form of temporary suspension of license to provide financial services.
The NBU also noted that these measures were applied in connection with the company’s non-compliance with the requirements of the Regulations on licensing and registration of financial service providers and their conditions of operation in the provision of financial services …, namely requirements for business reputation of financial service providers. The company must eliminate the violations by December 5, 2023.
Later, the Motor (Transport) Insurance Bureau of Ukraine reported on its website that due to the temporary suspension of a license of IC “Alfa Insurance” on compulsory insurance of civil liability of owners of vehicles (MTPL), it lost the right to enter into new contracts.
Earlier, it was reported that the last update of the financial stability rating (credit rating) of IC “Alfa Insurance” by RA “Standard-Rating” was performed on November, 2 2022 at the level uaAA+, according to the results of the 9 months of this year.
In the first three quarters of 2022 the company has collected UAH 719,327 mln of gross premiums that is by 32,97% less than in the same period of 2021. Net premiums have decreased by 32,75% down to UAH 711,449 mln, and earned premiums – by 16,23% down to UAH 849,317 mln.
The volume of indemnities paid out by IC “Alfa Insurance”, has decreased by 11,68% down to UAH 258,439 mln in the first nine months of 2022 comparing to the same period of 2021. Given the large rates of gross premiums decrease in comparison with insurance reimbursements, the level of payments has grown by 8,66 p.p. up to 35,93%.
The financial result from operating activities has grown in 3,77 times compared to the three quarters of 2021, and the net profit has increased in 4,09 times up to UAH 126,472 mln.
As reported, IC “Alfa Insurance” was founded in 2000. It offers a universal portfolio of services, including comprehensive programs to protect the interests of business and a wide range of insurance products for individuals.
The rating agency Expert-Rating has affirmed the financial stability rating of KSG Agro SA (Switzerland), the holding company of the agricultural holding KSG Agro, at the level of “uaA+” on the national scale (corresponds to the BBB level on the international scale), the company said in a press release on Wednesday following an audit of its activities over the first half of the year.
According to the rating agency, this assessment of the company’s performance in the first half of 2021 is due to an increase in the level of coverage by its own capital of its debt obligations, the company’s profitability and a good level of its EBITDA to available loans.
“Throughout the period from June 30, 2020 to June 30, 2021, KSG Agro’s equity capital grew by 52.46%, up to $14.47 million, including due to its profitable activity and the reduction of retained loss. For the same period the liabilities of KSG Agro S.A. decreased by 12.52%, down to $55.7 million. The decrease in liabilities of KSG Agro S.A. was mainly due to selling three subsidiary companies in May, 2021,” the rating agency said in the report.
According to it, debt obligations of KSG Agro S.A. as of June 30, 2021, decreased by 12.52% compared to June 30, 2020, to $55.69 million. Long-term loans predominated in the structure of the company’s debt obligations as of that date: their volume increased by 7.52%, to $27.25 million, whiles the volume of short-term liabilities decreased by 54.19%, to $2.91 million.
The agency noted that EBITDA of KSG Agro SA in the first half of 2021 decreased by 22.49% compared to January-June 2020, to $2.69 million. At the same time, the ratio of EBITDA to its loan obligations as of June 30, 2021 decreased by 2.03 p.p. versus the same date last year, to 8.95%, which indicates the company’s ability to service its debt obligations.
The agency’s report indicated that the current macroeconomic situation in Ukraine did not significantly affect the sales volumes of the agricultural holding’s products, in particular, its revenue in the first half of 2021 decreased by 12.1% compared to the same period in 2020, to $6.81 million. During the specified period, the net profit of KSG Agro increased 48 times, to $13.7 million, mainly due to the sale of its subsidiaries.
“Therefore, according to the results of the first half of 2021, KSG Agro S.A. demonstrated high profitability indicators,” the rating agency said.
The agency recalled that the borrower or the particular debt instrument with rating “uaA+” is characterized by a high creditworthiness compared to other Ukrainian borrowers or debt instruments.
Insurance company Krona (Kyiv) in 2020 collected UAH 117.5 million of insurance premiums, which is 58.35% more than in the same period a year earlier, the rating agency Expert-Rating reported in materials about updating the company’s financial strength rating on the national scale at the level “uaAA-“. According to its data, part of insurance premiums belonging to reinsurers increased by 85.80%, and their share in the structure of gross premiums by 5.20 percentage points, to 35.23%.
The volume of insurance payments and compensations made by the company in 2020 amounted to UAH 34.530 million, which is 18.55% higher than the volume of payments in 2019. At the same time, the level of payments for the year was 29.38%.
The equity capital of Krona for 2020 increased by 24.44%, to UAH 54.110 million, gross liabilities – by 45.59%, up to UAH 29 million. The volume of cash and cash equivalents increased by 19.10%, to UAH 16.160 million. At the same time, taking into account the high growth rates of gross liabilities, the cash coverage of the insurer’s liabilities decreased by 12.39 percentage points and as of the end of 2020 amounted to 55.74%.
The formed current financial investments of the insurer amounted to UAH 3.830 million. They consisted of deposits in banks with investment grade of credit ratings (49.06% of the investment portfolio) and with government bonds (50.94% of the portfolio).
Over 2020, the insurer’s operating profit amounted to UAH 3.030 million, which was 26% less than in 2019. Net profit increased to UAH 870,000.
According to the statements, as of December 31, 2020, the company complied with the criteria and standards established by law for solvency and capital adequacy, liquidity, profitability, asset quality and the riskiness of operations.
