The National Bank of Ukraine (NBU) has fined IC Kredo (Zaporizhzhya) 153 thousand UAH for violation of requirements in the sphere of financial monitoring.
As reported on the website of the regulator, the fine was imposed, in particular, for improper fulfillment of obligations to develop and implement internal documents on prevention and counteraction, for failure to provide training activities for agents of the institution (their employees) in order to understand their responsibilities and procedures.
As well as for violations of NBU regulations, in terms of providing the National Bank with information (statistical reporting) on prevention and counteraction with errors, and in terms of improper fulfillment of the obligation to apply a risk-oriented approach in its activities.
Among the violations also named improper fulfillment of the obligation to permanently form and enter in electronic form a list of clients with established by the institution levels of risk of business relations and facts of identification of the client’s belonging to the category of politically exposed persons, family members or persons related to a politically exposed person.
IC Kredo, registered in 2004, specializes on rendering services in the sphere of risk insurance.
According to the data of the company as of the beginning of the current year its shareholders are Steelbrok LLC -41,984%, Scientific and Production Limited Liability Company Neon -14,149%, Victor Krivtsun -12,287% and Vitaliy Chaika -33,835%.
In January-June 2023, InterExpress Insurance Company (Kyiv) collected insurance payments in the amount of UAH 26.099 million, which is 16.79% more than in the same period a year earlier, according to the information of the rating agency Standard-Rating on updating the company’s credit rating / financial strength (reliability) rating of the insurer on the national scale at uaAA.
It is noted that revenues from individuals increased by 46.59% to UAH 10.626 million in the analyzed period, while revenues from reinsurers in the analyzed period amounted to only UAH 19 thousand.
Despite the increase in premiums from individuals, the insurer’s client portfolio is dominated by legal entities, as indicated by their share in gross premiums, which amounted to 59.22% in the first half of 2023.
Insurance payments sent to reinsurers in the first half of 2023 decreased by 28.33% to UAH 2,881 million compared to the same period in 2022. Thus, the ratio of reinsurers’ participation in insurance premiums decreased by 6.95 p.p. to 11.04%.
Net written premiums increased by 26.69% to UAH 23,218 million, while earned premiums increased by 3.56% to UAH 24,256 million.
The volume of payments and reimbursements made by the insurer in the first half of 2023 compared to the same period of 2022 increased by 1.33% to UAH 9.191 million. Given the higher growth rate of gross premiums compared to claims, the level of payments decreased by 5.37 p.p. to 35.22%.
It is also noted that the company’s activities in the analyzed period were profitable: for the first half of 2023, the financial result from operating activities amounted to UAH 2.306 million, and net profit amounted to UAH 2.497 million.
As of June 30, 2023, the company’s assets increased by 12.75% to UAH 53.997 million, equity showed an increase of 20.60% to UAH 45.307 million, liabilities decreased by 15.81% to UAH 8.690 million, cash and cash equivalents decreased by 35.94% to UAH 4.140 million.
The RA also notes that as of July 1, 2023, PrJSC IC “InterExpress” invested UAH 8,011 million in government bonds. The availability of such investments had a positive impact on the provision of PJSC IC “Interexpress” with liquid assets, which in total exceeded the insurer’s liabilities by 1.4 times.
IC “InterExpress” was registered in 2004 and specializes in risky types of insurance.
Insurance company “Guardian” (Kyiv) has collected UAH 673,8 mln of gross insurance premiums in January-June 2023, that is by 90,4% more than in the same period a year earlier, reported the rating agency “Expert Rating”, which updated the insurer’s financial strength rating at the level of “uaAA” on the national scale following the results of the mentioned period.
It is noted that net premiums of the company for six months have increased by 84,7% – up to UAH 603,3 mln. Of them “Green Card” accounts for 63,19%, compulsory motor liability insurance – 22,9%, VHI – 4,99%.
The level of indemnities of IC “Guardian” following the results of the first half of 2023 compared to the first half of 2022 has grown by 10,27 p.p. and has amounted to 26,74%.
According to RA data, shareholders’ equity of the company as of June 30, 2023 has grown by 25,91% – up to UAH 248,71 mln, gross liabilities – by 88,88% – up to UAH 672,32 mln. The high growth rates of gross liabilities have led to decrease in the ratio between shareholders’ equity and liabilities of IC “Guardian” by 18,50 p.p.. Thus, as of the beginning of H2 2023 this indicator has amounted to 36,99% that indicates an acceptable level of shareholders’ equity coverage of the insurer’s liabilities.
The volume of cash and cash equivalents on the company’s accounts throughout the reporting period has grown by 29,85% – to UAH 188,098 mln, and the level of cash coverage of liabilities has decreased by 12,71 p.p., to 27,98%. – to 27,98%.
RA also informs that the financial results of the insurer have decreased in the reviewed period. In particular, following the results of the first half of 2023 the company has received an operating loss in the amount of UAH 5,88 mln, and its net profit has amounted to UAH 3,68 mln, that is by 92,44% less than the net profit for the first half of 2022.
At the same time RA notes that as of June 30, 2023 the insurer has formed a portfolio of current financial investments in the amount of UAH 171,62 mln, which consisted of OVDP and OZDP. Presence in the portfolio of investments in government bonds has positively influenced its provision with liquid assets, which in aggregate covered 53,5% of insurer liabilities.
The Agency notes that according to the statements provided by the insurer, IC “Guardian” has complied with the criteria and norms of solvency and capital adequacy, liquidity, profitability, quality of assets and riskiness of insurer operations established by the legislation.
IC “Guardian” is a member of the Presidium of the League of Insurance Organizations of Ukraine. Since January 2020 it has received the status of a full member of the ITSBU, has the right to sell “Green Card” policies.
The National Bank of Ukraine (NBU) on July 21 excluded from the State Register of Financial Institutions PJSC IC Kyivska Rus (Kyiv) in connection with the revocation of licenses for the provision of financial services, according to the regulator’s website.
As reported, the licenses were revoked on July 11, 2023 in connection with the insurer’s failure to submit reports for the year 2022, failure to submit information and documents at the request of the National Bank and the company’s failure to eliminate the identified violations in the time specified by the regulator (June 8, 2023).
According to the last submitted to the NBU statements of PJSC IC Kyivska Rus for the nine months of 2022, the amount of insurance payments amounted to UAH 85,4 mln, of which UAH 76,9 mln was transferred to reinsurance. The insurer has not made payments during the specified period.
Earlier, on May 8, 2023 the NBU has applied to IC ‘Kyivska Rus’ a measure of influence in the form of temporary suspension of licenses in connection with non-submission of reports for the first half of 2022 and for 2022, as well as actuarial report for 2022.
The company also did not submit the report on corporate governance and information on key risks and results of stress testing for 2022, did not provide information and documents at the request of the NBU.
Private JSC IC Kyivska Rus carries out activities on voluntary and compulsory types of insurance other than life insurance.
League of Insurance Organizations of Ukraine (LIOU) has accepted IC “ROM Ukraine” and IC “ROM Ukraine Life Insurance” (both – Kiev) into the association on July 13.
According to the Chairman of the Board of ROM Ukraine Jacek Matusiak, the group “ROM Ukraine” takes an active position in the market and never remains indifferent to the problems arising both in the insurance industry and in the economy of the country as a whole. This is what prompted the group to join LSOU in order to work together with like-minded companies to improve insurance legislation, to implement the best European business practices, especially in terms of transparency, ethics and responsibility for obligations to customers.
“Our group is interested in remaining an important and active player in the Ukrainian insurance market in the long term. Therefore, within a unified structure we count on effective partnership cooperation with the achievement of all strategic goals,” – he said.
As noted, the president of LSOU Victor Berlin, among its main priorities of the League – business protection, search for new opportunities for the development of insurers, as well as the unification of the insurance market of Ukraine for the sake of sustainable development.
“I am sure that such synergy of experience of Ukrainian and Polish colleagues will significantly expand our opportunities and will help us together with the recovery of Ukraine to start more intensive development of the national insurance market”, – emphasized the head of LSOU.
As “Interfax-Ukraine” was informed in the press service of “ROM Ukraine”, it was also decided to withdraw the companies from the National Association of Insurers of Ukraine, of which they are members since January 2021.
PJSC Insurance Company “ROM Ukraine” in 2022 collected UAH 1.280 billion of gross premiums, net premiums of the company increased last year by 6.76% – to UAH 1.172 billion, and earned premiums – by 13.38%, to UAH 1.110 billion. The volume of payments and compensations made by the insurer for the specified reporting period has amounted to UAH 575,537 mln.
Assets of the company on December 31, 2022 have decreased by 14,93% – to UAH 2,425 billion, shareholders’ equity has increased by 3,43% – to UAH 853,817 million, liabilities have decreased by 22,41% – to UAH 1,571 billion, cash and cash equivalents have increased in 3,34 times – to UAH 364,458 million.
IC “ROM Ukraine Life Insurance” has finished 2022 with net premiums in the amount of UAH 396,5 mln. Payouts amounted to UAH 45,4 mln, assets – UAH 1,872 bln, reserves – UAH 1,419 bln, net loss – UAH 17,4 mln.
PJSC IC PZU Ukraine and IC PZU Ukraine Life Insurance are subsidiaries of PZU S.A., part of the largest insurance group of Central and Eastern Europe – PZU Group (Poland).
The National Bank of Ukraine (NBU) on July 11 revoked the license of PJSC Insurance Company Kyivska Rus (Kyiv) to provide financial services, according to the regulator’s website.
The reason for this decision was the failure to submit reports for 2022, failure to submit information and documents at the request of the National Bank and the company’s failure to eliminate the identified violations in the time specified by the regulator (June 8, 2023).
According to the last submitted to the NBU statements of PJSC IC Kyivska Rus for nine months of 2022, the amount of insurance payments amounted to UAH 85,4 mln, of which UAH 76,9 mln was transferred to reinsurance. The insurer has not made any payments during the specified period.
As it was informed, on May 8, 2023 the NBU has applied to IC “Kyivska Rus” a measure of influence in the form of temporary suspension of licenses in connection with non-submission of reports for the first half of 2022 and for 2022, as well as actuarial report for 2022.
The company also did not submit the report on corporate governance and information on key risks and results of stress testing for 2022, did not provide information and documents at the request of the NBU.
Private JSC IC Kyivska Rus carries out activities on voluntary and compulsory types of insurance other than life insurance.
