Business news from Ukraine

INSURANCE COMPANY “PZU” REDUCES COLLECTION OF GROSS PREMIUMS IN UKRAINE, BUT INCREASES PAYMENTS

PZU Ukraine Insurance Company (Kyiv) collected UAH 300.729 million in gross premiums in January-March 2022, which is 12.71% less than in the same period of 2021, Standard-Rating RA reports. , updating the company’s credit/financial stability (reliability) rating on the national scale at the level of “uaААА” based on the results of the specified period.
According to him, income from individuals of the insurer remained almost at the same level (increased by only UAH 12 thousand to UAH 208.440 million), and from reinsurers decreased by 26.55%, to UAH 6.405 million. Thus, the share of individuals in the gross premiums of the insurer increased by 8.81 percentage points to 69.31%, while the share of reinsurers decreased to 2.13%.
Insurance payments sent to reinsurers for the first quarter of 2022 compared to the same period in 2021 decreased by 50.26%, to UAH 71.651 million. Thus, the coefficient of participation of reinsurance companies in insurance premiums decreased by 17.98 percentage points, to 23.83%.
The insurer’s net premiums increased by 14.28% to UAH 229.078 million, while earned insurance premiums increased by 34.89% to UAH 272.931 million.
During the reporting period, the company paid out UAH 183.737 million to its customers, which is 32.95% higher than the volume of insurance payments and indemnities made in the same period a year earlier. Thus, the level of payments increased from 40.12% to 61.1%, or by 20.98 percentage points.
According to the results of January-March of this year, IC “PZU Ukraine” received a net profit of UAH 25.352 million, which is 3.42 times higher than in the first quarter of last year.
As of March 31, 2022, the company’s assets decreased by 6.32%, to UAH 2.670 billion, equity increased by 0.49%, to UAH 829.536 million, liabilities decreased by 9.10%, to UAH 1.841 billion, cash and their equivalents increased by 154.96% to UAH 278.220 million.
Thus, as of the beginning of the second quarter of 2022, the company had a sufficient level of capitalization (45.06%), and 15.11% of its liabilities were covered by cash. At the same time, as of the reporting date, the company made financial investments in the amount of UAH 383.148 million, consisting of government bonds (73.01% of the investment portfolio) and deposits in banks with an investment grade credit rating (26.99% of the portfolio), which had a positive effect on its provision with liquid assets, the agency notes.
According to the report, IC PZU Ukraine has the support of one of the largest insurance groups in Central and Eastern Europe – PZU Group (which includes the parent company PZU PZU Ukraine – PZU S.A.).

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INSURER “UNIVERSALNA” SIGNIFICANTLY REDUCES GROSS PREMIUMS

Insurance company “Universalna” (Kyiv) in January-March 2022 collected UAH 205.182 million of gross insurance premiums, which is 18.53% less than in the same period a year earlier, according to the website of the Standard-Rating rating agency “.
The report also states that the agency has updated the credit/financial stability (reliability) rating of IC Universalna at uaААА 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 19.54% to UAH 111.709 million, and from reinsurers, on the contrary, decreased by 46.45% to UAH 0.226 million.
Given the increase in premiums from individuals, in the first quarter of 2022, individuals dominate the company’s client portfolio. At the same time, according to the results of activities during the first three months of 2022, the largest share of premiums (more than 43%) came from voluntary land transport insurance (CASCO).
Insurance payments sent to reinsurers for the first quarter of 2022 compared to the first quarter of 2021 decreased by 72.97% to UAH 10.773 million. Thus, the coefficient of participation of reinsurers in insurance premiums decreased by 10.58 percentage points. up to 5.25%.
The insurer’s net premiums decreased by 8.29% to UAH 194.409 million, while earned premiums increased by 24.96% to UAH 275.683 million.
In the first quarter of 2022, IC Universalna paid out UAH 76.793 million to its customers, which is 6.67% lower than in the same period in 2021. Considering the high rate of reduction in gross premiums over insurance claims, the level of payments increased by 4.76 percentage points. to 37.43%.
The RA also reports that the financial result from operating activities amounted to UAH 19.335 million, which is almost three times higher than in the first quarter of 2021, and the insurer’s net profit in the period under review increased by 95.71% to UAH 9.449 million.
As of March 31, 2022, the company’s assets decreased by 7.32% to UAH 1.227 billion, equity increased by 2.37% to UAH 408.599 million, liabilities decreased by 11.50% to UAH 818.733 million, cash and equivalents decreased by 18.75% to UAH 76.799 mln.
As of April 1, 2022, IC Universalna formed a portfolio of bank deposits in the amount of UAH 437.741 million, and the insurer invested UAH 118.980 million in government bonds. Cash and cash equivalents covered 9.38% of the company’s liabilities, liquid assets (cash, bank deposits and government bonds) covered 77.38% of the insurer’s liabilities, and the Company’s equity coverage of liabilities was 49.91%.
The RA draws attention to the fact that PJSC 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 (owns 70% of shares). Fairfax Financial Holdings Limited (Canada) – a holding company that, through its subsidiaries, is primarily engaged in casualty insurance, property insurance and investment management Fairfax Financial Holdings Limited.
As of the beginning of the second quarter of 2022, the holding’s consolidated assets were $88.587 billion, Fairfax’s consolidated gross business (premiums) for the first quarter of 2022 was $6.663 billion, and profit before tax for the first quarter of 2022 was $249 million.

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KRAYINA INSURER RAISES GROSS PREMIUMS BY 40%

Krayina Insurance Company (Kyiv) in January-June 2019 received UAH 205.1 million of gross insurance premiums, which is 39.46% more compared to the same period in 2018, the Expert-Rating agency has said updating the rating of the company at the level of “uaAA+” according to the national scale for the specified period.
Part of insurance premiums owned by reinsurers grew by 2.4 times and amounted to 3.71%.
Insurance payments for the first six months of 2019 increased by 19.74%. The ratio between payments and gross premiums amounted to 48.26%, which is quite a high level of payments for companies specializing in conventional types of insurance, the agency notes.
The company’s assets as of June 30, 2019 remained practically unchanged and amounted to UAH 234.930 million, gross liabilities increased by 5.5%, to UAH 127.370 million, net worth decreased by 5.56%, to UAH 107.560 million. As a result, the company’s capitalization decreased by 9.89 percentage points, to 84.44%.
Krayina insurer has been operating in the insurance market of Ukraine since 1994. It has licenses for 23 types of insurance.

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