In January-September 2022, PJSC Insurance Guarantees of Ukraine (SGU) collected UAH 339,000 of gross premiums, which is 92.8% less than in the same period in 2021, follows from the information of the Expert Rating rating agency on confirmation financial strength rating of the insurer/credit rating on the national scale at the level of “uaAA” based on the results of its work for the specified response period.
At the same time, it is noted that the decrease in the insurer’s gross premiums in the analyzed period of 2022, among other things, is associated with the specialization of PJSC “SGU” in cargo insurance and with a significant reduction in the transportation of those in need of insurance due to the Russian attack and the introduction of martial law in Ukraine.
As of September 30, 2022, the company’s equity increased by 0.24% to UAH 37.47 million, while its gross liabilities increased by 17.66% to UAH 19.09 million. As a result, there was a decrease in the ratio between equity and liabilities by 34.13 percentage points. up to 196.31%.
The volume of cash and cash equivalents on SGU accounts amounted to UAH 50.03 million, and the level of cash coverage of the insurer’s obligations decreased by 20.23 percentage points. up to 262.15%.
The company’s financial results for the first nine months of 2022 improved compared to the same period in 2021. In particular, for the first three quarters of 2022, the insurer received a net profit of UAH 0.26 million compared to a loss for the nine months of 2021, and the amount of damage from operating activities also decreased.
The RA notes that, according to the reporting provided by the insurer, as of September 30, 2022, the company complied with the criteria and standards established by law for solvency and capital adequacy, liquidity, profitability, asset quality and riskiness of the insurer’s operations.
PrJSC “SGU” was registered in November 2005. It has licenses to carry out 15 types of insurance activities, including four – for the implementation of compulsory types of insurance, 11 – voluntary insurance.
TAS Insurance Group (Kyiv) in October paid 33.6% less insurance claims under concluded insurance contracts than in October a year earlier – UAH 63.25 million against UAH 95.24 million, respectively, according to the insurer’s website.
At the same time, almost a third of all payments by the insurer in October – 30.12%, or UAH 19.06 million – fell on CASCO, 44.9%, or UAH 28.4 million – on OSAGO.
Under the Green Card policies, UAH 4.11 million, or 6.5% of the company’s total payments in October of this year, were reimbursed.
At the same time, the share of VHI, for which UAH 9.56 million was paid in the reporting month, amounted to 15.12% in the company’s payment portfolio for this period.
Under other insurance contracts, IG “TAS” paid UAH 2.12 million in October.
On November 11, the National Bank of Ukraine included London Marine Insurance Services Limited to the State Register of Insurance and Reinsurance Brokers, according to the regulator’s website.
It is noted that the NBU has excluded the credit union Center for Financial Services (CFS) from the State Register of Financial Institutions due to the cancellation of all of its licenses for activities in the provision of financial services.
As reported, the licenses were revoked on September 30, 2022 in connection with the decision to terminate the activity of this company by merging with the credit union “SuperCredit”.
As of October 1, 2022 the assets of CC “CFP” was 15,897,15 million UAH (1% of the total market of credit unions), liabilities – 12,253 million UAH (1.4% of the total market of credit unions), including 10,658 million UAH – liabilities to union members in the form of deposits of CC members on deposit accounts.
INSURANCE, London Marine Insurance Services, NATIONAL BANK, reinsurance brokers
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
The Government of Ukraine is initiating a mechanism for insuring war risks for foreign investment, Prime Minister Denys Shmygal said.
“We see the interest of potential investors and understand their warnings. One of them is security. Therefore, the government of Ukraine is initiating a mechanism for insuring war risks for foreign investment. In particular, through the Multilateral Investment Guarantee Agency (MIGA) and the World Bank,” he said at the cabinet meeting on Friday.
The prime minister recalled that MIGA had already allocated $30 million for the pilot project.
According to him, the German Ministry of Economy and other partners promise to join the insurance procedure.
Shareholders of the VUSO insurance company completed the purchase of UASK ASKA (operating under the ASKA brand) in order to create a major player in the insurance market with Ukrainian capital.
“Despite the war and what seems like a bad time to invest, we are determined to see our goal of merging the two companies through. We believe in the victory of Ukraine and its future! We hope that Ukrainians and Ukrainian enterprises will continue to use the services of VUSO as a large Ukrainian company. It is symbolic for us that the date of the transaction, as well as the date of the beginning of the association, is August 24 – the Independence Day of our country!
After the transaction is completed, it is planned to merge UASK ASKA and IC VUSO under a single VUSO brand by the end of 2022.
The future merger will increase VUSO’s presence in the corporate insurance segment through ASKA’s longstanding relationships with large corporate clients.
The amount and terms of the deal were not disclosed.
VUSO insurance company has been operating on the Ukrainian market since 2001. According to Insurance TOP, its assets as of December 31, 2022 amounted to UAH 940.5 million, insurance premiums for 12 months of 2021 – UAH 1.719 billion (8th place in the ranking of insurers). Holds 50 licenses: 33 for voluntary and 17 for compulsory types of insurance. The company specializes in motor, medical and travel insurance for private and corporate clients, has more than 30 representative offices throughout Ukraine. He is a Member of the ITIBU (since 07/01/22 – Full Member), the Nuclear Pool, a participant in the Direct Settlement project. Member of the National Association of Insurers of Ukraine. The company has been assigned a financial stability (reliability) rating of uaАА. The shareholders of VUSO are the Altitude Fund, the ultimate beneficiaries are Mikhail Nazarchuk and Alexey Shuba.
UASK ASKA is the first private insurance company that appeared in independent Ukraine and has been operating for over 30 years. It was included in the portfolio of the international investment company SCM.
At the beginning of 2022, ASKA had 2,900 corporate and more than 200,000 private clients throughout Ukraine. He is a member of MTIBU, one of the founders of the Nuclear Pool. The insurer has a license to carry out insurance activities for compulsory insurance of civil liability of car owners (including the Green Card). During its work, ASKA has repeatedly made the largest payments in the history of Ukrainian insurance.
