Insurance Company “Universalna” (Kyiv) collected UAH 335.927 million of gross insurance premiums in January-March 2023, which is 63.7% more than during the same period of 2022, according to the website of rating agency “Standard-Rating”.
This indicates that the agency confirmed the credit rating/rating of financial strength (reliability) of IC “Universalna” at the level “uaAAA” on the national scale, based on the analysis of performance in the specified reporting period.
According to the published data, the revenues from individuals have increased by 72.54% up to UAH 192.742 mln, and from reinsurers – by 23.01%, up to UAH 0.278 mln. Thus physical persons prevail in the client portfolio of the company. At the same time, the largest proportion of premiums (almost 37%) came from voluntary insurance of land transport (except for railway transport).
The premiums sent to reinsurers, in Q1 2023 compared to the same period of 2022 decreased by 4,46% – down to 10,293 million UAH. Therefore, the ratio of reinsurers’ participation in insurance premiums has decreased by 2,19 p.p. – to 3,06%.
Net premiums of the insurer in January-March have increased by 67.50% – up to 325.634 million UAH, and earned premiums have increased by 22.91% – up to 338.852 million UAH.
The volume of insurance payments performed by IC “Universalna” in the first quarter of 2023 compared to the same period of 2022 increased by 37.03% – up to 105,228 million UAH. Given the high growth rate of gross premiums over indemnities and insurance reimbursements, the level of payments has decreased by 6,11 p.p.. – to 31,32%.
Thus, according to the results of the Q1 of 2023 operating profit of the company has amounted to UAH 27,722 mln, that is by 43,38% more than in the Q1 of 2022, and net profit of the insurer has increased in 3,64 times – up to UAH 34,427 mln.
As of April 1, 2023, the assets of the company have decreased by 4,56% down to UAH 1,776 bln, shareholders’ equity has increased by 6% down to UAH 608,643 mln, liabilities have decreased by 9,27% down to UAH 1,168 bln, cash and cash equivalents have reduced by 26,20% down to UAH 174,103 mln.
At that, RA notes that as of the reporting date the company formed a portfolio of current financial investments, which consisted of bank deposits (UAH 603,883 mln) and government bonds (UAH 159,636 mln). Cash and cash equivalents covered 14.91% of liabilities of PJSC IC “Universalna”, liquid assets (cash, bank deposits and OVGZ) covered 80.29% of liabilities of the insurer, and the ratio of shareholders’ equity to liabilities amounted to 52.12%.
IC “Universalna” has an international composition of shareholders, in particular, the European Bank for Reconstruction and Development owns 30% of shares and Fairfax Financial Holdings Limited – 70%.
Fairfax Financial Holdings Limited (Canada) is a holding company, which through its subsidiaries is mainly engaged in accident insurance, property insurance and investment management.
TAS Insurance Group in April has paid 90,94 mln UAH of insurance indemnities according to the concluded insurance contracts, which is 77,1% more than in April of the last year.
According to the message on the website of the insurer, CASCO accounts for more than a quarter of all payments for the month – 29.64%, or UAH 26,96 mln, which is 66,3% more than in the reporting period 2022.
Payments on MTPL insurance have grown by 53.3% up to UAH 34,68 mln, which makes 38,14% of the total payments of the company for a month.
In turn, the part of “Green Card” in April portfolio of insurer’s payments has constituted 16,47%, or 14,98 mln UAH of compensations – in 5,94 times more than a year ago.
Payments on contracts of voluntary medical insurance have increased by 50,9% up to UAH 10,76 mln, which is 11,84% of the total amount of payments of the company per month.
At the same time TAS IG has paid UAH 1,28 mln on property insurance contracts in April – this is 2,67 times more than last year.
The company paid UAH 2,28 mln. as insurance indemnities under other insurance contracts in April.
The National Bank of Ukraine (NBU) has included 13 insurance companies in the list of insurers with the right to conduct transactions with non-resident reinsurers, the regulator’s website says.
According to its data, on March 6, 2023 the list included IC “TAS”, IC “Universalna”; on March 13 – IC “Unica”, IC “Arsenal Insurance”, IC “ARKS”, IC “PZU Ukraine”, IC “TAS”; on March 20 – IC “INGO”; on March 29 – IC “Insurance Guarantees of Ukraine”; on April 4 – IC “Busin”; on April 17 – IC “Guardian”, IC “Ukrainian fire insurance company”, IC “European insurance alliance”.
As reported, on February, 13, the NBU reported that it expanded the possibilities of insurance companies on payment of insurance payments under reinsurance contracts with non-resident reinsurers, and specified the requirements for such operations.
Thus, starting from February 14 insurers, insurance and reinsurance brokers could make payments under respective contracts without restrictions as to the date of conclusion of such contracts under condition of fulfillment of a number of conditions.
In order to simplify the procedure for cross-border reinsurance payments, the National Bank has created a list of insurers and established the procedure for deciding on the inclusion and exclusion of an insurer from the relevant list, as well as the grounds for leaving applications without consideration.
In order to be included to the specified list a respective application should be submitted to the NBU. Inclusion of insurers in the list takes place if the insurer complies with a number of requirements, namely, absence of enforcement actions taken against the insurer for violation of legislation requirements in the sphere of financial monitoring (except written clauses) in realization of special economic and other sanctions, compliance with transparency requirements as to ownership structure, compliance with solvency, capital adequacy and risk ratios within the year prior to application submission and within the period of being in the list of insurers.
In addition, the financial strength (stability) rating of the non-resident reinsurer, with which the reinsurance transaction is performed, should correspond to the level not lower than “A3” (Moody’s Investors Service), “A-” (Standard & Poor’s), “A-” (Fitch Ratings), “A-” (A.M. Best).
Romanian authorities are introducing new rules for housing and food subsidies for Ukrainian refugees starting from May: now the money will be received only by those who have found a job, the EFE news agency reported.
In addition, those citizens of Ukraine whose children go to school in Romania will be able to count on the subsidies.
Under the new rules, the state will no longer pay housing costs to landlords who house refugees, and tenants will receive subsidies directly. Refugee camps will receive subsidies from the state as before. Details of these rules will be made public at a later date, the agency notes.
EFE explains that Bucharest has taken such measures against the background of a significant labor shortage in Romania. More than 3.8 million Ukrainians arrived in the country since February 2022, but the vast majority went to other European countries. According to Romanian authorities, about 110,000 Ukrainian refugees currently remain in the country, but less than 10 percent of them have a work contract.
ALC Insurance Company ARX Life (ARX Life, Kyiv) has collected UAH 266.3 mln of insurance premiums in 2022, which is 17.02% less than a year earlier, according to Standard-Rating RA website updated credit rating/rating of financial stability (reliability) of the insurer at the level uaAAA on the national scale. Credit-Rating notes that decrease of gross business of the company has been caused by Russian aggression, introduction of martial law, fall of business activity level in the country and is the general tendency in the insurance market of Ukraine.
The volume of payouts and indemnities, performed by the insurer in 2022, has grown by 2,57% in comparison with 2021 – up to UAH 50,294 mln. Therefore, the level of payments of the insurer has grown by 3,61 p.p. – up to 18,89%.
Acquisition expenses of the insurer have decreased by 19,42% down to UAH 151,264 mln in 2022.
According to the results of work for the year “IC “ARKS Life” has received a net profit of UAH 21,594 mln that is by 2,24% more than in the same period of 2021.
As of January 1, 2023 assets of the company have increased by 17.61% up to UAH 232,882 mln, shareholders’ equity – by 22.01% up to UAH 119,692 mln, liabilities – by 13.30% up to UAH 113,19 mln, cash and cash equivalents – in 2.58 times, up to UAH 66,205 mln.
Thus, as of the beginning of 2023, the company had a high level of capitalization (105,74%) and high level of liabilities coverage by monetary assets and their equivalents (58,49%).
At the same time, RA notes that as of January 1, 2023, the insurer carried out financial investments in the amount of UAH 144,893 mln consisting of government bonds (96,55%) and deposits in banks (3,45%).
ARX Life, like ARX, is a part of the international insurance holding Fairfax Financial Holdings Ltd. ARX Life is among the top 10 companies in the life insurance market in Ukraine.
IC “Brokbusiness” (Kyiv) collected UAH 258.9 mln of gross premiums in 2022, which is 1.76% less than during the same period a year earlier, Expert-Rating said in its information about confirmation of insurer financial strength rating at the level uaAA+ on national scale.
According to the agency, the part of insurance premiums, which belongs to reinsurers, for the mentioned mentioned period decreased by 37,47%, and their share in the structure of gross premiums of the company decreased by 1,98 p.p. and made 3,46%.
The company carried out 63,967 mln UAH of insurance payments and indemnities in 2022, which is 29,42% less than in 2021, while the level of payments has reduced by 9,69 p.p. and has amounted to 24,71% following the results of 2022.
In 2022 the shareholders’ equity of the company has grown by 74.32% up to UAH 164,53 million, and its gross liabilities have reduced by 1,69% down to UAH 155,54 million. The Agency notes that an essential growth of the insurer’s shareholders’ equity in the analyzed period has occurred due to the increase in retained profit (by UAH 64,1 mln) in its structure, which has become possible due to the profitable activity of the company in 2022. In this regard, there was an increase in the level of shareholders’ equity coverage of the insurer’s liabilities on 46,12 p.p. – to 105,78 %. Consequently, at the beginning of 2023 shareholders’ equity exceeded the volume of the company’s liabilities by 5,78%.
The volume of cash and cash equivalents as of December, 31st, 2022 has grown in 1,55 times and has amounted to UAH 167,73 mln that has resulted in the increase of the level of liabilities coverage by cash means: by 39,33 p.p. up to – up to 107,84 %.
In the analyzed period the activity of PrJSC IC “Brokbusiness” has been characterized by a high efficiency. In particular, according to the results of 2022 the operating profit of the insurer has grown up to UAH 70,37 mln, and its net profit has increased up to UAH 66,98 mln, while following the results of 2021 the company has received net and operating losses.
IC Brokbusiness works in the Ukrainian insurance market for more than 25 years and is presented in all regions of Ukraine. The insurer has 39 licenses for voluntary and obligatory types of insurance.
