Insurance company “Ukrainian Insurance Group” (Kiev) in 2023 collected UAH 2.036 billion of net premiums, which is 10.7% less than in 2022, and UAH 2.936 billion of gross premiums (-7.3%).
This is reported on the website of the rating agency “Standard-Rating”, which confirmed the financial strength rating/credit rating of the insurance company at the level of “uaAA+” at the end of the reporting period.
At the same time receipts from individuals have decreased by 16.82% – to UAH 1.773 bln, and from reinsurers, on the contrary, have increased in 2.33 times – to UAH 10.112 mln, hence the share of individuals in gross premiums of the company has amounted to 60.36%, and the share of reinsurers – 0.34%.
Insurance payments sent to reinsurers for 2023 have increased by 1,55% compared to 2022 – up to UAH 900,401 mln. Thus, the ratio of participation of reinsurance companies in insurance premiums has increased by 2,67 p.p. – up to 30,66%.
The volumes of insurance payments and indemnities made by IC “USG” in 2023 have amounted to UAH 1,478 billion, that has exceeded the volume of payments and indemnities in 2022 by 87,63%. At the same time the level of payments has increased up to 50,33%.
RA also notes that following the results of 2023 the company has received a negative financial result from operating activities in the amount of UAH 321,997 mln, and the net loss of the insurer has amounted to UAH 38,515 mln.
Assets of the company as of December 31, 2023 have increased by 2,44% – to UAH 3,522 billion, shareholders’ equity has decreased by 12,01% – to UAH 566,501 million, liabilities have increased by 5,77% – to UAH 2,955 billion, cash and cash equivalents have decreased by 43,68% – to UAH 825,414 million.
Thus, as of the beginning of 2024 the company had a satisfactory level of capitalization (19.17%), and cash covered 27.93% of its liabilities. At the same time RA notes that on the reporting date the insurer has formed a portfolio of financial investments in the amount of UAH 1,087 billion, consisting of government bonds (57,89% of the portfolio) and deposits in banks with high credit rating (42,11% of the portfolio). The presence of such investments in aggregate covered 64,73% of the insurer’s liabilities.
As it was informed, the controlling shareholder of IC USG is an international insurance group headquartered in Austria Vienna Insurance Group, which is represented by 50 companies in 30 countries and is the leader of the insurance market of Central and Eastern Europe.
In January-June 2023, Ukrainian Insurance Group Insurance Company (Kyiv) collected UAH 752.166 million in net premiums, which is 1.64% less than in the same period a year earlier, and UAH 1.466 billion in gross premiums (+10.85%), according to the website of the rating agency Standard-Rating, which affirmed the company’s financial strength rating/credit rating at uaAA+ for the reporting period.
At the same time, the insurance company’s revenues from individuals increased by 14.30% to UAH 965.065 million, and from reinsurers – by 2.65 times, to UAH 4.910 million. In the first half of 2023, the share of individuals in the company’s gross premiums amounted to 65.84%, and the share of reinsurers – 0.33%.
Insurance payments sent to reinsurers in the first half of 2023 increased by 27.96% to UAH 713.715 million compared to the same period in 2022. The participation ratio of reinsurance companies in insurance premiums increased by 6.51 p.p. to 48.69%.
The volume of insurance payments and reimbursements made by USG in the first half of 2023 amounted to UAH 702.471 million, which is more than twice the volume of payments and reimbursements in the first half of 2022, and the claims ratio increased to 47.92%.
According to the results of the first six months of 2023, the company received a negative financial result from operating activities in the amount of UAH 98.056 million, the insurer’s net loss amounted to UAH 20.288 million (net profit of UAH 73.8 million for 6 months of 2022).
The agency notes that the financial results were affected, among other things, by a significant increase in insurance payments and reimbursements, as well as expenses for the formation of reserves.
As of June 30, 2023, the insurer’s assets increased by 8.89% to UAH 3.743 billion, equity decreased by 3.15% to UAH 623.51 million, liabilities increased by 11.66% to UAH 3.120 billion, cash and cash equivalents decreased by 20.77% to UAH 1.161 billion.
As of July 1, 2023, the insurer made financial investments in the amount of UAH 641.657 million, consisting of government bonds, government bonds and deposits with banks with high credit ratings. The availability of such investments has a positive impact on the provision of USG with liquid assets, which cover 57.78% of the insurer’s liabilities.
As reported, the controlling shareholder of USG Insurance Group is Vienna Insurance Group, an international insurance group headquartered in Austria, represented by 50 companies in 30 countries and a leader in the insurance market of Central and Eastern Europe.
Ukrainian Insurance Group (UIG, Kyiv) has paid insurance compensation in the amount of $1.333 million for a cargo of grain damaged as a result of an explosion in the port of the Lebanese capital Beirut on August 4, 2020, the insurance company has said.
The company said in a press release on its website that the blast wave spread 10 km from the explosion site. As a result, buildings and cars were damaged, the main port of Beirut, through which 60% of all Lebanese imports pass, was put out of action.
Among other things, a cargo of wheat insured by the UIG in the port was also destroyed. According to the insurance contract, the cargo was insured against all risks.
Ukrainian Insurance Group is a company with 100% foreign capital. It has been working in the Ukrainian conventional insurance market since 2000. It is part of one of the world’s largest insurance groups, the market leader in Central and Eastern Europe – Vienna Insurance.
Ukrainian Insurance Group and Globus Insurance Company (both based in Kyiv), that are members of Vienna Insurance Group, plan to complete the merger and become a single legal entity at the end of 2021, Head of Ukrainian Insurance Group Pavlo Nelha has said at a press conference.
“In fact, the process of merger, taking into account the peculiarities of Ukrainian legislation, is not fast, not easy, and we are ready for it. Our plan is to have one legal entity and unite the balance sheets of the insurance companies by the end of 2021,” he said.
He said that one of the reasons for such a long period of consolidation is different organizational forms of the companies as Ukrainian Insurance Group is a joint-stock company, while Globus is an additional liability company.
“To date, the stage of combining the networks and offices has already been completed. We approached the second stage – a legal merger of the two companies, in fact, the merger of the balance sheets,” Nelha noted.
Ukrainian Insurance Group has been operating in the market for over 18 years. It has 30 licenses for voluntary and compulsory types of insurance. The regional network has more than 80 offices throughout Ukraine. The company employs more than 500 people.
Globus insurer has been operating in the market for more than 24 years. It HAS 19 licenses for different types of insurance.
