Busin Insurance Company (Kyiv) collected UAH 919,000 of gross premiums in January-March 2020, which is 97.4% lower than the volume of premiums collected for the same period in 2019, the Standard-Rating Agency has said.
The agency updated the insurer’s credit and financial stability rating at uaAA+ on the national scale based on an analysis of its financial statements for the first quarter of 2020.
Receipts from individuals in the company increased almost eight times, to UAH 213,000, and from reinsurers, on the contrary, decreased by 98.87%, to UAH 289,000.
The agency said that the sharp decline in gross business volumes is due to the specific types of insurance that the company provides.
Insurance payments allocated to reinsurers in the first quarter of 2020 compared to the same period in 2019 decreased by 26.62%, from UAH 11.2 million to UAH 8.2 million. As a result of the outpacing rates of gross premium reduction compared with the volume of premiums sent to reinsurers, the coefficient of dependence on reinsurance grew to 892.79%.
The company paid customers UAH 2.117 million of insurance payments and indemnities for the relevant period of 2020, which is 50.90% less than the volume of payments for the first quarter of 2019. However, a larger reduction in gross premiums caused an increase in the level of payments to 230.53%.
The financial result from the operating activities of Busin insurer amounted to UAH 8.863 million, and net profit reached UAH 27.031 million.
The company’s assets grew 8.65 times, to UAH 2.694 billion, cash and cash equivalents by 22.88%, to UAH 115.980 million by March 31, 2020. The company’s net worth had a rise of 14.85%, to UAH 130.770 million, liabilities increased from UAH 197.379 million to UAH 2.563 billion.
Thus, at the end of the first quarter of 2020, the obligations of the insurer were covered by net worth by 5.10%, and cash covered 4.53% of the company’s liabilities.
Busin insurance company was registered in February 1993. It specializes in risk insurance.
The insurance companies that are members of the Motor (Transport) Insurance Bureau of Ukraine (MTIBU) in January-March 2020 increased collection of insurance premiums on compulsory insurance of vehicle owners’ civil liability (OSAGO) by 20.28% compared to with the same period of 2019, to UAH 1.3 billion.
According to data published on the MTIBU’s website, the number of OSAGO contracts in the first quarter increased by 0.55%, to 1.776 million
The total amount of accrued insurance claims under internal insurance contracts increased by 15.15%, to UAH 684.3 million. In particular, more than UAH 123 million is paid using European accident record forms, which is 12.8% more than in January-March 2019.
The bureau also recorded an increase in the number of settled claims for insurance compensation by 10.3%, to 37,527, of which 13,041 using European accident record forms (an increase of 10.35%).
The MTIBU is the only association of insurers that carries out compulsory insurance of vehicle owners’ civil liability for damage caused to third parties. The bureau members are 49 insurance companies.
GRAWE Ukraine Insurance Company (Kyiv) in 2019 collected UAH 97.438 million in net premiums, which is 27% more than a year earlier, according to the annual report of the company, published in the information disclosure system of the National Securities and Stock Market Commission.
According to its data, gross premiums for the year amounted to UAH 115.026 million, which is 21.7% more than in 2018. Premiums transferred to reinsurance remained at almost the same level of UAH 8.138 million. The reserve of unearned premiums increased by 11.3%, to UAH 10 million.
In 2019, the company paid customers UAH 58.592 million, which is 26.6% more than a year earlier.
The company’s administrative expenses for the year increased by 32.3%, to UAH 18.136 million, sales expenses by 13.8%, to UAH 40.502 million.
As reported, GRAWE Ukraine Insurance Company in 2019 saw a net loss of UAH 30.345 million, while in 2018 some UAH 16.5 million. Over the year, it increased assets by 5%, to UAH 119.537 million.
Net worth decreased by 23.8%, to UAH 41.583 million. Charter capital, as before, is UAH 41.13 million.
The long-term liabilities of the insurer increased by 43.3%, to UAH 59.814 million, while current liabilities increased by 3.5%, to UAH 18.140 million.
Debtor indebtedness rose by 52.7%, to UAH 12.422 million. Cash and cash equivalents decreased by 18.6% and amounted to UAH 15.009 million.
The shareholders of Ukrainian Insurance Group on December 19 approved an agreement to merge Globus Insurance Company with Ukrainian Insurance Group (both based in Kyiv), the insurer has reported in the public information base of the National Commission on Securities and the Stock Market. It was also decided to issue shares to convert the shares of Globus: 694,001 common registered shares with a nominal value of UAH 100 per share in the amount totaling UAH 69.400 million.
As reported, Ukrainian Insurance Group and Globus are part of Vienna Insurance Group, one of the largest insurance groups in Central and Eastern Europe.
Ukrainian Insurance Group has been operating in the Ukrainian market of conventional insurance since 2000. Globus insurance company with additional liability was founded in 1994. Both companies specialize in risk insurance.
In addition to these two companies, the Vienna Insurance Group in Ukraine also includes Kniazha Vienna Insurance Group and Kniazha Life Vienna Insurance Group.
Brokbusiness insurance company (Kyiv) in January-September 2019 collected UAH 159.4 million in gross premiums, which is 9.59% less than in the same period a year earlier, according to Expert-Rating agency that confirmed the company’s financial stability rating at “uaAA-“according to the national scale.
According to the agency, at the same time, part of insurance premiums owned by reinsurers almost doubled, to UAH 16.5 million, which accounted for 10.35% of gross premiums.
For the three quarters of 2019, the company made insurance claim fee payments in the amount of UAH 70.170 million. The insurer’s payment level increased by 6.12 percentage points, to 44.02%.
By September 30, 2019 the assets of Brokbusiness decreased by 0.37%, to UAH 222.7 million, net worth by 4.82%, to UAH 94.840 million, gross liabilities decreased by 3.91%, to UAH 127.850 million. As a result, the coverage of the insurer’s liabilities by net worth for this period increased by 6.18 percentage points, to 74.18%.
Cash and cash equivalents on the company’s accounts amounted to UAH 70.840 million, which is 16.85% less than at the end of the third quarter of the year before.
In the nine months, Brokbusiness posted a net loss of UAH 10.4 million, while in the nine months of 2018 the figure was UAH 16.7 million.
Oranta national joint-stock insurance company (Kyiv) in January-September 2019 collected gross insurance premiums for the amount of UAH 679.3 million, which is 17.9% more than a year ago.
The company said that in particular, premiums for voluntary car insurance over the period grew by 25.2%, to UAH 32 million, premiums on compulsory insurance of vehicle owners’ civil liability (OSAGO) – by 9.2%, to UAH 383.4 million, Green Card – by 45.2%, to UAH 121.3 million, property insurance – by 5.4%, to UAH 64.9 million, liability insurance – by 50.7%, to UAH 35 million and voluntary medical insurance – by 49.5%, to UAH 27.373 million.
According to the company, in January-September 2019, 1.553 million insurance contracts were concluded, which is 7.9% more than the same period a year earlier. In particular, the number of concluded voluntary medical insurance contracts increased 78%, mandatory car insurance – by 60.4%, Green Card – by 54.4%, cargo insurance – twice, and liability insurance – 62.8%.
Over the period, Oranta paid out UAH 238.8 million in claims to customers, which is 29.1% more than in the same period last year. The largest payments were made under OSAGO – UAH 168.4 million (a rise of 31.8%), Green Card – UAH 35.6 million (a rise of 11.2%), voluntary car insurance – UAH 16.2 million (a rise of 19.9%), property insurance – UAH 10.5 million (a rise of 60.6%), voluntary medical insurance – UAH 5.515 million (a rise of 92.9%).
The company also said that the level of payments for the reporting period amounted to 35.1%, while for this period a year earlier it was 32.1%.
Oranta is the legal successor of Ukrgosstrakh, founded on November 25, 1921. In 1993, Ukrgosstrakh was reorganized into OJSC Oranta.