Business news from Ukraine

Insurer “Quorum” in January-March reduced payments by 61%

Insurance company “Quorum” (Kyiv) in January-March 2023 collected insurance premiums for UAH 10.6 mln, which is 43.04% less than during the same period a year earlier, Standard-Rating RA said in its update to the credit rating/ financial strength rating of the company on the national scale at “uaAA”.
At that, it is specified that the rating has been updated on the basis of the analysis of the company’s results for the mentioned reporting period.
Proceeds from individuals for this period have decreased by 77,52% – to UAH 6,696 m and there were no receipts from reinsurers. The proportion of individuals in gross premiums following the results of Q1 2023 constituted 62,90%, i.e. individuals prevailed in the client portfolio of IC “Quorum”.
The insurance payments sent to reinsurers, in Q1 2023 have constituted UAH 3,588 m, which is more than twice higher than in the same period of 2022. Thus, the ratio of reinsurers’ participation in insurance premiums has grown by 10,19 p.p. – up to 33,71%.
Net premiums of the insurer in the first quarter have increased by 23,98% – up to UAH 7,057 mln, and the earned premiums – by 7,31%, up to UAH 6,884 mln.
The volume of insurance indemnities of the company in the first quarter of 2023 has decreased by 61,09% – down to UAH 1,255 mln, and the level of payments has decreased by 31,55 p.p., compared to the same period of 2022. – to 11.79%.
It is also noted that the operating profit of the company for the first quarter of 2023 increased by 24.74% to UAH 3.136 million, and net profit increased by 71.51% to UAH 3.780 million.
Assets of the company grew by 3.08% to UAH 52.809 mln, shareholders’ equity increased by 8.79% to UAH 46.799 mln, liabilities reduced by 26.81% to UAH 6.010 mln, cash and cash equivalents increased by 4.64% to UAH 31.401 mln.

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National Bank revoked all licenses of insurer “Speir”

The National Bank of Ukraine on May 11 has cancelled all licenses of ALC Insurance Company Speir (Kyiv) to provide financial services.
According to the message on the website of the regulator, an unscheduled inspection carried out by the NBU in February-March this year found a repeated violation of license conditions – the insurer does not comply with mandatory standards.
The countermeasure for similar violations of license conditions to ALC “IC “Speir” was already applied on September 2, 2022.
The decision on revocation of the license shall come into force on May 12, 2023.
As previously reported, the rating agency “Standard-Rating” has withdrawn the credit rating / financial stability rating of the insurer SK “Speir” on February 9, 2023.
By results of H1 2022 ADO IC Speir received UAH 5,5 m of insurance premiums, 95% of which – from natural persons, and carried out UAH 22,8 th of insurance payments. The market share of the company according to the results of H1 2022 – 0,06%.

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National Bank stopped license of insurer “Kyivska Rus”

The National Bank of Ukraine (NBU) on May 8 applied to Kyivska Rus Insurance Company PJSC a sanction in the form of temporary suspension of its license to provide financial services in insurance due to failure to submit reports for the first half of 2022 and for 2022, as well as an actuarial report for 2022.
According to the regulator’s website, the company also failed to submit a report on corporate governance and information on the key risks and the results of stress testing for 2022, and failed to provide information and documents requested by the NBU.
The insurer has been set a deadline for elimination of violations till June 8, 2023.
Private JSC “IC “Kyivska Rus” performs activity in voluntary and obligatory types of insurance, other than life insurance.
According to the accounts of the insurer for nine months of 2022 the amount of insurance payments totaled 85,4 mln UAH of which 76,9 mln UAH were paid out by reinsurers. The insurer made no payments during the above period.

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NBU revoked license of insurer “Universal policy”

On May 5, the National Bank of Ukraine (NBU) has cancelled the licenses of Universal Policy Insurance Company (Kyiv) due to repeated violations of license conditions during the year.
According to the regulator’s website, the company fails to comply with mandatory financial ratios (solvency and capital adequacy ratio and risk operations ratio).
Earlier it was reported that “IC “Universalniy Polis” was subjected to a temporary suspension of the license on November 11, 2022.
The NBU notes that according to accounts for 2022, the amount of insurance premiums collected by the company was UAH 72 million (90% of them – from reinsurers), insurance payments – UAH 36 million. The market share of the company according to the results of 2022 is 0,2%.
According to reports for the first quarter of 2023, “IC “Universal polis” has not received insurance premiums.
IC “Universal polis”, registered in 2001, specializes in providing services in the field of risk insurance.

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Insurer “VELTA” in January-March reduced net premiums almost 5 times

Insurance company “VELTA” (Kiev) in January-March 2023 collected UAH 1,382 million of net premiums, which is 4.7 times less than during the same period a year earlier, according to an interim financial report of the company in the information disclosure system of the National Commission on Securities and Stock Market (NKTSBFR).
The report says that gross premiums of the company in the first quarter decreased by 2.2 times – to 2,727 million UAH, premiums transferred in reinsurance – 2.5 times, to 1,064 million UAH.
The company paid out UAH 73 ths in three months of 2023 against UAH 2 ths in the same period of 2022.
Its administrative costs decreased by 15% to UAH 2.034 mln and sales costs decreased 3.3 times to UAH 429 th. in the first three months of the year.
Financial loss from operating activities amounted to UAH 868 th., net loss – UAH 1,902 mln.
IC “Vielta” was registered in 1995, specializing in risky types of insurance.

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Insurer “Busin” in 2022 reduced payments to customers by 98.4%

Insurance company “Busin” (Kyiv) in 2022 collected 328.124 million UAH of gross premiums, which is 48.13% less than a year earlier, according to rating agency “Standard-Rating” in information about updated credit rating/ financial stability rating of the insurer at the level “uaAA+” on national scale based on analysis of its statements for this period.
It is noted that the receipts from individuals for this period have decreased by 49,53% to UAH 1,349 mln, and from reinsurers, on the contrary, have increased in 4,34 times to UAH 46,629 mln.
Insurance payments, sent to the reinsurers, in 2022 compared to 2021 decreased by 60,69% – down to 217,001 million UAH. As a result, the participation rate of reinsurers in insurance premiums decreased to 66,13%.
Net premiums have grown by 37,84% – up to 111,123 million UAH, and earned premiums – by 3,29%, up to 87,465 million UAH.
In four quarters of 2022 the company has paid out UAH 0,687 mln of indemnities to its customers, which is by 98,44% less than in 2021. Thus, the indemnities rate has decreased on 6,73 p.p. – up to 0,21%.
The financial result from operating activities of IC “Busin” has increased by 13,80% in 2022 in comparison with 2021 up to UAH 44,676 mln, and net profit – almost in 5,5 times, up to UAH 62,413 mln.
Assets of the insurer have decreased by 5,26% down to UAH 611,636 mln on December 31, 2022, shareholders’ equity has increased by 33,39% – up to UAH 201,031 mln, liabilities have decreased by 17,03% – down to UAH 410,605 mln, cash and cash equivalents have increased by 21,05% – up to UAH 211,065 mln.
IC Busin was incorporated in February, 1993. It specializes on risk kinds of insurance. It is a member of several professional and industry associations – League of Insurance Organizations of Ukraine, National Insurance Indemnity Club, International Association of Aviation Insurers (UA), Nuclear Insurance Pool, American Chamber in Ukraine, British Business Club.