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 Main Directorate of the State Service of Ukraine for Emergency Situations in the Zhytomyr region and IC “Universalna” (Kyiv) signed an agreement for the purchase of services of compulsory insurance of civil liability of owners of land vehicles (OSAGO) in the amount of 261 units.
According to the Prozorro electronic public procurement system, the expected cost of purchasing services was UAH 590,963 thousand, the company’s price offer was UAH 306,328 thousand.
The IC “Kraina” took part in the tender with a price offer of 305 thousand UAH and MK “Prince VIG” – 353.1 thousand UAH.
As reported, IC “Universalnaya” has an international composition of shareholders, in particular, the European Bank for Reconstruction and Development (owns 30% of shares) and Fairfax Financial Holdings Limited (owns 70% of shares).
On October 20, the National Bank of Ukraine fined IC Ekta (Kyiv) ODO for late provision of information and documents in full at the request of the regulator, according to the NBU website.
It is also noted that the insurance company must pay a fine (the amount is not specified – IF) within seven working days from the date of receipt of the relevant decision of the regulator to impose a fine.
The decision to apply the enforcement measure comes into force on October 21, 2022.
As reported, on August 19, 2022, the National Bank of Ukraine applied a measure of influence to the company in the form of a temporary suspension of licenses to carry out insurance activities for violation of mandatory financial standards (solvency, capital adequacy and risk of operations).
The regulator clarified that the violations were detected based on the results of the analysis of the reporting of the UK for the first quarter of 2022. The insurer had to eliminate the violations by September 20, 2022.
IC “EKTA” was registered in 2018 and specializes in risk insurance.
In the first half of this year, the insurer collected UAH 94.2 million of insurance payments and paid out UAH 6.5 million of insurance payments. The authorized capital is UAH 37 million.
LLC “Odessa Regional Energy Supply Company” and IC “Ultra Alliance” (formerly IC “Ultra”, Kyiv) signed an agreement on voluntary medical insurance and accident insurance.
According to the Prozorro electronic public procurement system, the expected cost of purchasing services was UAH 1.3 million, the company’s price offer was UAH 771.269 million.
The tender was also attended by InterExpress Insurance Company – UAH 711.270 thousand, Misto Insurance Company – UAH 776.1 thousand, Motor-Garant Insurance Company – UAH 804.3 thousand, Europolis – UAH 963.7 thousand. UAH, Providna – UAH 1.095 million, Oranta – UAH 1.098 million, Krajina – UAH 1.141 million, TAS SG – UAH 1.289 million.
IC “Ultra” has been providing insurance services since 2004, has 17 licenses for compulsory and voluntary types of insurance.
In 2021, the insurer was confirmed with a financial strength rating of “uaAA”.
Oleksandr Buryak and Serhiy Buryak each became owners of 25% shares in PJSC Brokbiznes Insurance Company (Kyiv), according to information posted in the database of the National Securities and Stock Market Commission.
In addition, it is noted that Sergei Buryak did not previously own shares of the company, Alexander Buryak was the owner of 0.002723%.
As reported, IC Brokbusiness has been operating on the Ukrainian insurance market for more than 25 years and is represented in all regions of Ukraine. The insurer has 39 licenses for voluntary and compulsory types of insurance.
In January-June 2022, the company collected UAH 120.14 million in gross premiums, which is 3.46% more than in the same period a year earlier, made insurance payments and indemnities for UAH 29.56 million, which is 33.16% less than for the same period in 2021, and the level of payments decreased by 13.48 p.p. and amounted to 24.61%.
The equity capital of the company as of June 30 increased by 48.29% – up to UAH 135.85 million, while its gross liabilities decreased by 13.07% and amounted to UAH 121.25 million. As a result, there was an increase in the level of coverage of the insurer’s obligations by equity capital by 46.36 percentage points. Therefore, as of the beginning of the second half of 2022, equity covered 112.04% of the company’s liabilities. The volume of cash and cash equivalents amounted to UAH 117.99 million, an increase of 17.15%.
According to the results of the first half of 2022, compared to the first half of 2021, the insurer’s operating profit increased 14 times – to UAH 46.22 million, and its net profit increased almost 29 times – to UAH 44.53 million.
Busin Insurance Company (Kyiv) has resumed the operation of the largest obligatory aviation liability reinsurance contract on the Ukrainian insurance market with a limit of $550 million and an obligatory reinsurance contract for aviation CASCO with a capacity of $6 million, according to the website of the insurer.
It is also noted that the well-known syndicates of Lloyds and the world’s leading companies with a high rating of financial reliability are involved in reinsurance contracts. The obligatory program fully applies to retrocession risks, which guarantees prompt consideration of proposals and reliable coverage of risks from reinsurance partners.
SK “Busin” was registered in February 1993. Specializes in risk types of insurance. He is a member of a number of professional and industry associations: the League of Insurance Organizations of Ukraine, the National Insurance Claims Club, the International Association of Aviation Insurers (UA), the Nuclear Insurance Pool, the American Chamber in Ukraine, the British Business Club.
