Insurers of Ukraine from December 13 will be able to make insurance payments under reinsurance contracts entered into with non-residents, the website of the National Bank of Ukraine informs.
In particular, this applies to payments on the basis of: contracts concluded before February 24, 2022 for documents issued before May 31, 2022, contracts concluded from February 24 to May 31, 2022, if their terms provide coverage for military risks.
At the same time there are clear requirements for the implementation of the relevant operations. Firstly, the non-resident reinsurer concluded a contract of reinsurance should have the financial strength rating, which is not lower than “A3” (Moody’s Investors Service), “A-” (Standard & Poor’s ), “A-” (Fitch Ratings), “A-” (A.M. Best) by the classification of international rating agencies.
Secondly, a Ukrainian insurance company, which carries out reinsurance, should meet a number of requirements, among which: no decision of the NBU on the recognition of the ownership structure of the insurer is not transparent; no decision of the NBU on recognizing the business reputation of the insurer, its owners, managers or key persons as insolvent; compliance with the solvency and capital adequacy ratio and the risk ratio of operations by the insurer.
The NBU notes that in order to obtain confirmation of compliance requirements for further transfer to the servicing bank, the insurer must apply to the NBU.
“Providing the ability to pay foreign currency payments under contracts with non-resident reinsurers will ensure that insurers comply with obligations to clients and international partners arising as of May 31, 2022. This is important to maintain the continuity of the insurance market of the country,” – noted in the message.
The NBU has also settled the issue of payment to non-residents of insurance payments under contracts of reinsurance of aviation risks in respect of aircraft, including those in the lease or leasing, clarified the rules for the implementation of transfers to non-resident reinsurers under international contracts of insurance “Green Card”.
The respective amendments were introduced by NBU regulation No.242 dated December 9, 2022 “On Amendments to the resolution of the Board of the National Bank of Ukraine No.18 dated February 24, 2022”, which shall become effective on December 13, 2022.
Universalna Insurance Company (Kyiv) collected UAH 945.9 million in gross insurance premiums in January-September 2022, which is 6.7% more than in the same period last year, according to the website of the rating agency “Standard Rating”.
At the same time, it is indicated that the agency confirmed the credit rating / financial stability (reliability) rating of IC “Universalna” at the level of “uaAAA” on the national scale based on the analysis of work for the specified reporting period.
According to the published data, income from individuals increased by 19.97% to UAH 415.740 million over six months, and from reinsurers, on the contrary, decreased by 51.83% to UAH 0.946 million. Despite the increase in premiums from individuals, according to the results of the first nine months of 2022, legal entities dominate the company’s client portfolio. At the same time, according to the results of activities during the first three quarters of 2022, the largest share of premiums (more than 36%) came from voluntary land transport insurance (CASCO).
Insurance payments sent to reinsurers for the nine months of 2022 compared to the same period in 2021 decreased by 6.67% to UAH 148.722 million. Thus, the coefficient of participation of reinsurers in insurance premiums decreased by 2.25 percentage points. up to 15.72%.
In the analyzed period, the insurer’s net premiums increased by 9.63% to UAH 797.206 million, while earned premiums showed an increase of 13.90% to UAH 817.514 million.
The volume of insurance payments made by IC Universalna for the first three quarters of 2022 decreased by 11.26% to UAH 240.593 million compared to the same period in 2021. Thus, the level of payments decreased by 5.15 p.p. up to 25.43%.
In the first nine months of 2022, the financial result from operating activities amounted to UAH 178.169 million, which is 5.14 times higher than in the nine months of 2021, while the insurer’s net profit increased 5.2 times to UAH 147.472 million.
As of October 1, 2022, the company’s assets increased by 27.83% to UAH 1.693 billion, equity increased by 36.95% to UAH 546.622 million, liabilities increased by 23.90% to UAH 1.146 million, cash and cash equivalents increased by 2.79 times to UAH 263.789 mln.
The RA also notes that as of the reporting date, the company formed a portfolio of bank deposits in the amount of UAH 429.048 million, and the insurer invested UAH 141.485 million in government bonds. As of the beginning of the fourth quarter of 2022, cash and cash equivalents covered 23.01% of the company’s liabilities, liquid assets (cash, bank deposits and government bonds) covered 72.79% of the insurer’s liabilities, and the company’s capital coverage ratio of liabilities was 47 .69%.
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). Fairfax Financial Holdings Limited (Canada) is a holding company that, through its subsidiaries, is primarily engaged in casualty insurance, property insurance and investment management. As of the beginning of the third quarter of 2022, the holding’s consolidated assets amounted to $88.460 billion, and Fairfax’s consolidated gross business (premiums) for the first six months of 2022 amounted to $13.971 billion.
Insurance companies Uniqa and Uniqa Life (both from Kyiv), which are part of the non-banking financial group Uniqa Ukraine, paid UAH 74.7 million in insurance claims in June this year, according to the website of IC Uniqa.
At the same time, it is noted that under auto insurance contracts, the total amount of insurance payments amounted to UAH 39.4 million, of which UAH 30.8 million for CASCO and UAH 6 million for OSAGO and DGO.
The total amount of payments under voluntary medical insurance contracts amounted to UAH 25.2 million. The amount of life insurance payments is UAH 8.2 million.
The largest payment in June was UAH 821.6 thousand. under a CASCO insurance contract.
Medical assistance “Uniqa” for the reporting period processed more than 61.144 thousand appeals, technical assistance – more than 10.583 thousand, the report says.
UNIQA Group (Austria) entered the Ukrainian market in 2006. Its companies in Ukraine – “Uniqa” and “Uniqa Life” with headquarters in Kyiv, offer most types of risk and life insurance through a nationwide network.
Insurance companies UNIQA and UNIQA Life (both – Kyiv), included in the nonbank financial group UNIQA Ukraine, in May of this year paid out UAH 86.9 million in insurance claims, according to the website of the UNIQA insurance company.
At the same time, under car insurance policies, the total amount of insurance payments reached UAH 39.4 million, of which payments under voluntary car insurance policies were UAH 33.7 million, for compulsory insurance of land vehicle owners’ civil liability and voluntary insurance of land vehicle owners’ civil liability – UAH 5.7 million.
The amount of payments under voluntary medical insurance policies totaled UAH 20.7 million. The amount of life insurance payments is UAH 4.4 million.
The largest payment was UAH 6.9 million under a property insurance policy.
Medical assistance UNIQA for the reporting period processed more than 51,322 appeals, technical assistance – more than 10,944, the group said.
UNIQA Group (Austria) entered the Ukrainian market in 2006. Its companies in Ukraine – UNIQA and UNIQA Life with headquarters in Kyiv – offer most types of risk and life insurance through a nationwide network.
UNIQA and UNIQA Life insurance companies (Kyiv), which are part of the non-banking financial group UNIQA Ukraine, paid out UAH 77.5 million in insurance claims to customers in April this year, according to the website of UNIQA.
At the same time, it is noted that under auto insurance contracts the total amount of insurance payments was UAH 22.2 million, of which payments for KASKO – UAH 16.1 million, for OSAGO – UAH 6.1 million.
The amount of payments under voluntary medical insurance contracts totaled UAH 31.9 million. The amount of life insurance payments is UAH 4.7 million.
The largest payment was UAH 12.2 million under the insurance contract for construction and installation risks.
UNIQA medical assistance for the reporting period processed more than 37,608 appeals, technical assistance – more than 9,532, the report says.
UNIQA Group (Austria) entered the Ukrainian market in 2006. Its companies in Ukraine – UNIQA and UNIQA Life with headquarters in Kyiv, offer most types of risk and life insurance through a nationwide network.
