Business news from Ukraine

UKRAINIAN INSURANCE GROUP AND GLOBUS INSURER TO MERGE

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.

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AVERS INSURER TO BUY OUT 75% OF ITS SHARES

Shareholders of PRJSC Avers Insurance Company (Kyiv) at a meeting on July 20 decided to buy out 15,000 shares of the company (75%) for their further cancellation, according to the insurer’s official statement. An independent valuation of the shares determined their price at UAH 2.6 each with a nominal value of UAH 1,000.
The buyout of the shares will take place from September 23 to December 28, 2018.
According to the company, at the time of this decision, its shareholders were BASK Ltd. (22.85%), members of the supervisory board, Daniil Volynets (65%) and Serhiy Bilohortsev (5.15%).
PrJSC Avers was registered in 2007. It provides risk insurance services.
Its charter capital is UAH 20 million.

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NINE INSURERS LEAD IN TERMS OF PREMIUM COLLECTION IN UKRAINE’S REGIONS

Nine insurance companies led Insurance Top ranking in terms of collection of insurance premiums in Ukraine’s regions in January-March 2018. TAS Insurance Group became leader in ten regions.
According to the ranking, TAS Insurance Group in Volyn region (raised UAH 16.5 million and paid UAH 4.3 million), in Zhytomyr region (UAH 9.3 million and UAH 3.3 million respectively), in Ivano-Frankivsk region (UAH 10.2 million and UAH 4.2 million), in Kirovohrad region (UAH 6 million and UAH 1.5 million), in Luhansk region (UAH 2.1 million and UAH 614,000), in Mykolaiv region (UAH 11.8 million and UAH 3.4 million), in Sumy region (UAH 5.4 million and UAH 2.1 million), in Ternopil region (UAH 20.3 million and UAH 6.2 million), in Khmelnytsky region (UAH 7.6 million and UAH 1.6 million), in Cherkasy region (UAH 10 million and UAH 5 million).
Alliance Insurance Company led in Dnipropetrovsk region (raised UAH 105 million and paid UAH 21 million), Asko-Donbas Pivnichny – in Donetsk region (UAH 12.8 million and UAH 3.8 million respectively), Globus Insurance Company – in Zakarpattia and Chernivtsi regions (UAH 13 million and UAH 6 million; UAH 2.8 million and UAH 886,000), Credo Insurance Company – in Zaporizhia region (UAH 216.4 million and UAH 46 million), AXA Insurance – in Poltava and Kherson regions (raised UAH 15 million and UAH 7.6 million respectively), Oranta – in Chernihiv region (UAH 12 million and UAH 2.8 million), Kniazha Insurance Company – in Vinnytsia region (UAH 15 million and UAH 7 million).
PZU Ukraine raised the largest amounts in premium collection in January-March 2016 in Lviv region (raised UAH 27.2 million and paid UAH 30.6 million), Kharkiv region (UAH 6.8 million and UAH 5.2 million respectively), and Rivne region (UAH 5 million and UAH 2 million).
Arsenal Insurance led in terms of premium collection in Kyiv and Kyiv region (raised UAH 434 million and paid UAH 42 million). It was followed by AXA Insurance with UAH 264 million and Ukrainian Insurance Group with UAH 160 million.

UKRAINE’S STATE AIR TRAFFIC SERVICE AND BUSIN INSURER AGREE ON INSURANCE OF THREE PLANES

Ukraine’s State Air Traffic Services Enterprise (UkSATSE) and Busin Insurance Company (Kyiv) have concluded an agreement on compulsory aircraft insurance on June 27 (3 planes), according to information on the ProZorro portal. The bid was expected at UAH 3.127 million, Busin’s actual bid was UAH 2.920 million.
IC INGO whose bid was UAH 2.940 million also took part in the bidding.
UkSATSE was founded in 1992. The main mission of UkSATSE is to provide an efficient and safe air navigation services in the Ukrainian airspace and in the airspace over the high seas where the responsibility for providing air traffic services is delegated to Ukraine under the international agreements.
It services five areas of responsibility covering 774,569 km.

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INSURER INGO UKRAINE WILL PAY UAH 26 MLN IN DIVIDENDS

The shareholders of INGO Ukraine insurance company (Kyiv) at a meeting on April 26 made a decision to pay dividends in the amount of UAH 26.148 million, according to the official information of the insurer. Money is paid directly to non-resident shareholders in U.S. dollars at the NBU rate on the day of payment, to residents in the national currency. Payment is made in the amount of UAH 85.58 per share.
INGO Ukraine has more than 20 years of experience in the market. It has 28 licenses for various types of compulsory and voluntary insurance, provides insurance services to corporate and retail customers. The INGO Ukraine team is more than 500 employees in 25 branches operating in all regions of Ukraine.
The IBI-Rating agency confirmed the company’s long-term credit rating at the level of uaAA for 2017, the forecast is “stable” on the national scale.
The main shareholder of the company since 2017 has been the Ukrainian business group DevelopmentConstruction Holding (DCH) with a 99.99% share.

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UKRAINIAN INSURERS INCREASE PREMIUM COLLECTION VIA RESIDENT INTERMEDIARIES BY 48% – REGULATOR

Ukrainian insurance companies in 2017 collected UAH 131.128 million of premiums through resident intermediaries, which is 48.4% more compared to 2016 (UAH 88.366 million). According to a report on the website of the National Commission for Regulation of Financial Services Markets, the number of contracts signed through resident intermediaries for the period increased by 12.5%, to 4,240.
According to the regulator, of the total amount of collected premiums, premiums on personal insurance amounted to UAH 115.02 million, property insurance to UAH 6.9 million, mandatory insurance to UAH 2.25 million, life insurance to UAH 1.33 million, and liability insurance to UAH 5.621 million.
The amount of remuneration for the provision of such intermediary services for 2017 increased 56.7%, to UAH 9.199 million.
According to the commission, insurance premiums received by non-resident insurers under insurance contracts for the specified period amounted to UAH 3.497 million, which is 19.3% less than in 2016. Remuneration on 32 signed contracts amounted to UAH 619,500. The regulator said that during the reporting period insurance claim fee payments under the above contracts were not made.

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