Business news from Ukraine

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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UKRAINIAN INSURANCE COMPANIES IN 2019 RECEIVE UAH 21.632 BILLION

Ukrainian insurance companies in 2019 received UAH 21.632 billion in insurance premiums from individuals, which is 17.4%, or UAH 3.201 billion, more than in 2018, Oleksandr Zaletov, a member of the National Commission for the State Regulating the Financial Services Market, has told Interfax-Ukraine.
According to him, in 2019 the top ten most popular insurance services among the Ukrainian population included life insurance with UAH 4.491 billion (20.8% more), OSAGO insurance with UAH 4.297 billion (11.9% more), KASKO insurance with UAH 4.280 billion (18.9% more), medical insurance with UAH 1.624 billion (24.3% more), accident insurance with UAH 1.392 billion (9.3% more), insurance in the Green Card system with UAH 1.316 billion (36.5% more), property insurance with UAH 1.214 million (8.5% more), insurance of tourists with UAH 1.187 billion (52.1% more), health insurance with UAH 595 million (37.7% more) and financial risk insurance with UAH 436 million (20.4% more).
In his opinion, the growth of insurance services provision to the population, unlike the previous years, is not due to exchange rate differences, but, first of all, to the growing demand for insurance among citizens who travel actively, take care of their health and their loved ones, and also think about providing “financial airbag” in the old age. Thus, for example, in 2019 the number of insured under life insurance programs increased by 52.4%, under travel insurance by 49.3%, under the Green Card system by 50.3%, under KASKO by 67.2%, voluntary insurance of vehicle owners’ civil liability by 39.9%.
He also said that in 2019 insurance companies made insurance payments to the population in the amount of UAH 6.618 billion, which is 11.9%, or UAH 705 million more than in 2018.

NUMBER OF GREEN CARD INSURANCE CONTRACTS IN UKRAINE 21% UP IN 2020

The number of Green Card international insurance contracts signed by the member companies of the Motor (Transport) Insurance Bureau of Ukraine (MTIBU) increased by 21.72% in January-February 2020 compared to the same period in 2019, to more than 59,536.
According to the MTIBU’s website, the amount of accrued insurance premiums for the indicated period decreased by 10.93% compared to the same period last year, to UAH 271 million.
At the same time, the amount of compensation paid on claims increased by 2.1 times, to EUR 2.704 million, while the number of claims paid by 87.7%, to 1,115.
The MTIBU is the only association of insurers that carry out compulsory insurance of vehicle owners’ civil liability for harm caused to third parties.

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