Business news from Ukraine

EUROPEAN TRAVEL INSURANCE INSURES 63% FEWER TOURISTS IN SUMMER 2020 THAN ONE YEAR AGO

European Travel Insurance (ERV, Kyiv) in three summer months of 2020 insured 63% fewer tourists than a year ago, when over 612,000 tourists were insured, the insurance company has said in a press release.
The number of tourists insured by the company who traveled in Ukraine fell by 58% and those traveling abroad – by 64%. In June-August 2020, ERV insured more than 191,000 tourists who traveled abroad, and more than 35,000 tourists who traveled across the country.
“For the company, as well as for the entire tourism industry, the summer was difficult. It was unrealistic to make any plans in the ever-changing situation on the travel market. Although the borders opened and air traffic resumed early June, tourists are seriously scared by the sad experience of quarantine, they were not in a hurry to plunge into the world of travel again. During the summer, the tourism business learned to work in a pandemic, and tourists got used to traveling in new realities,” ERV said.
According to the company, in general, over the summer period, 1,873 insurance accidents were registered with tourists abroad for the amount of UAH 10,602 and 45 – with those traveling across the territory of Ukraine for a total of UAH 122,000.
If in June only 86 insurance accidents with tourists abroad were recorded, then in August their number increased to 1,417 for the amount of UAH 7.326 million. Of these, 908 cases occurred in Turkey (for comparison: in July, 360 insurance accidents were recorded abroad, 243 of them occurred with vacationers in Turkey, 215 cases occurred in Egypt, 121 accidents occurred with tourists in Bulgaria. Other insured accidents in August were reported with tourists in Croatia (51), Montenegro (31) and Albania (14).

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UNIQA INCREASE INSURANCE PAYMENTS BY 25% IN UKRAINE

UNIQA and UNIQA Life insurers (Kyiv), members of the non-bank financial group UNIQA Ukraine, paid UAH 82.1 million of insurance claim fees in July 2020, which is 25% more than the amount of payments for June this year, according to a press release from UNIQA.
It is noted that under auto insurance contracts, the total amount of insurance payments in July amounted to UAH 37.4 million (46% of the total payments), of which payments for KASKO amounted to UAH 29.5 million, on OSAGO and DSAGO some UAH 7.9 million.
The total amount of payments under voluntary medical insurance contracts in July was UAH 32.7 million. The amount of payments for life insurance totaled UAH 2.8 million.
The largest sum for July was paid for the KASKO risk in the amount of UAH 1.1 million.
In July 2020, the UNIQA medical assistance processed 85,533 requests from insured clients. In July, technical assistance was contacted by 17,544 clients insured under KASKO, OSAGO, and property risks.
UNIQA Group (Austria) entered the Ukrainian market in 2006. Today its companies, namely UNIQA and UNIQA Life, headquartered in Kyiv, offer most types of risk and life insurance through a nationwide network.

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INSURANCE COMPANY ARSENAL WILL INCREASE CHARTER CAPITAL TO UAH 202.5 MLN

The shareholders of Arsenal Insurance (Kyiv) insurance company at a meeting on June 26 decided to increase the charter capital of the company from UAH 121.5 million to UAH 202.5 million via a closed additional placement of shares.
According to information in the publicly available database of the National Securities and Stock Market Commission of Ukraine, 120,000 shares with a nominal value of UAH 675 per share will be additionally sold for a total of UAH 81 million.
The report also notes that the received financial resources in the form of cash will be placed on current accounts and bank deposits in the ratio of 30% to 70%. The shares of the company, on which the decision on the issue was made, do not provide for the possibility of conversion.
As reported, the company’s shareholders at a meeting on April 24, 2020 considered the issue of increasing the charter capital of the company from UAH 77.4 million to UAH 121.5 million by increasing the nominal value of shares from UAH 430 to UAH 675 (for one ordinary registered share) due to sending part of profit to the charter capital.
Arsenal Insurance is among the top three largest insurance companies in Ukraine and is number one among insurers with Ukrainian capital. Every day the company makes over UAH 2 million of insurance payments. The partners of the Ukrainian company are the leading European reinsurers: HannoverRe, PolishReinsuranceCompany, SCOR SE, Gen.
According to the information on the company’s website, chairman of the board Serhiy Avdeyev owns 24.5% of Arsenal Insurance, Maksym Tuz owns 21%, Kostiantyn Tuz some 9%, Oleksandr Solop holds 17.5%, Anatoliy Solop 12.51%, Hennadiy Moldavsky 9.99%, and Maryna Avdeyeva some 5.5%.

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FOREIGNERS WILL NEED INSURANCE FOR ENTRY TO UKRAINE

Foreigners will need to have insurance for entry to Ukraine as soon as international flights are resumed, Health Minister of Ukraine Maksym Stepanov has said during a press briefing in Kyiv.
A possibility of testing the passengers for coronavirus (COVID-19) is also being considered.
“Speaking about border crossing and the resumption of international flights scheduled for June 15, we jointly with the Infrastructure Ministry suggest introducing the ‘red’ and ‘green’ zones. The ‘red’ zone will include the countries where the epidemiological situation is worse than in Ukraine, the ‘green’ one is [the countries] with a better situation. The ‘green’ zone foresees observation and self-isolation. In addition, we are considering a possibility of testing, but only by medical workers. At the same time, those who arrive in Ukraine must be insured. We are working on all of these issues,” Stepanov said.

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INSURANCE COMPANIES OF UKRAINE REDUCE VOLUME OF REINSURANCE BY 37% IN Q1

Insurance companies of Ukraine in January-March 2020 paid insurance premiums in the amount of UAH 2.78 billion under insurance risk reinsurance contracts, which is 37.4% or UAH 1.66 billion less than in the same period in 2019, member of the National Commission for the State Regulation of Financial Services Markets Oleksandr Zaletov has told Interfax-Ukraine.
According to him, despite the fact that in the first quarter of 2020, net insurance premiums compared to the same period in 2019 increased by a mere 1.8%, to UAH 9.85 billion, the situation in the reinsurance market has changed.
Firstly, cooperation with international reinsurers has intensified. So non-resident reinsurers were paid UAH 884 million, which is 12.6% or UAH 98.9 million more than in the same period in 2019 (UAH 785.3 million for the first quarter of 2019). In the first quarter of 2020, as before, predominantly reinsurance is carried out in the member countries of the Organization for Economic Cooperation and Development (OECD). The most actively cooperating with Ukraine in the field of reinsurance were insurers and specialized reinsurers from Germany, which accounted for 19.7% of the premiums in this segment, as well as Austria (19.4%), the UK (14.6%), and Poland (12.4%), France (7.2%), Switzerland (5.6%), Italy (3.9%), the Czech Republic (3.8%), the United States (3%) and Belgium (2.4%), and the rest accounted for less than 2%.
In January-March 2020, non-resident reinsurers made insurance payments in the amount of UAH 473 million, which is 62.2% or UAH 181 million more than in the same period in 2019 (UAH 292 million for the first quarter of 2019). A significant share was held by reinsurers from the Czech Republic (31.2%), Germany (24.3%), Poland (17.6%), Great Britain (9%), Austria (7.6%), France (2.4%), and Italy (2.4%), the rest less than 2%.
Secondly, there were significant reductions in operations in the domestic reinsurance market. So, in the first quarter of 2020, resident reinsurers were paid insurance premiums in the amount of UAH 1.89 billion, which is 48.3% less compared to the same period in 2019 (UAH 3.65 billion for the first quarter of 2019).

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NEW INSURANCE COMPANY REGISTERED IN UKRAINE

The National Commission for the State Regulation of Financial Services Markets, on April 9, entered the information on double liability company Gestalt Group (Kyiv) into the public register of financial institutions, the commission has said on its website.
According to the unified public register of legal entities and private entrepreneurs, the company was registered in February 2019 with charter capital of UAH 34 million. It specializes in risk insurance and reinsurance.
The founders of the company were Gestalt Finance LLC (Kyiv) with contribution of UAH 33.660 million, PrJSC Arton-Megacity, Andriy Antonenko and Yuriy Khandashko, who is also the head of the company.
According to the public register of legal entities and private entrepreneurs, Gestalt Finance LLC was registered in March 2019 with charter capital of UAH 10,000. The founder is PrJSC Arton-Megacity and Antonenko.

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