Business news from Ukraine

Insurer “ARCS Life” reduced collection of premiums and payments in January-September 2022

Insurance company ARX Life (ARX Life, Kyiv) in January-September 2022 collected insurance premiums for UAH 197.7 mln, which is 16.82% less than a year earlier, according to Standard-Rating RA website updated its credit rating/ financial stability (reliability) rating of the insurer on the national scale at uaAAA.
Credit-Rating notes that decrease of gross business of the company has been caused by Russian aggression, introduction of martial law, fall of business activity level in the country and is the general tendency in the insurance market of Ukraine.
The volume of payouts and indemnities of the insurer has grown by 1,36% up to UAH 37,735 mln in the 9 months of 2022 comparing to the same period of 2021. Therefore, the level of payments of the insurer has grown by 3,43 p.p., up to 19,09%.
Acquisition expenses of the insurer have decreased by 17,85% down to UAH 111,458 mln in the first three quarters of 2022 in comparison with the same period of 2021.
According to the results of work during the nine months of 2022 the company has received a net profit of UAH 17,196 mln, that is by 17,74% lower than the profit received in January-September 2021.
As of October 1, 2022 assets of the company increased by 12.3%, to 222.351 million UAH, shareholders’ equity increased by 17.53%, to 115.294 million UAH, liabilities increased by 7.16%, to 107.057 million UAH, cash and cash equivalents increased by 2.89 times and amounted to 74.154 million UAH.
RA notes, that as of the reporting date the insurer has made financial investments in the amount of UAH 126,548 mln, entirely consisting of government bonds. The availability of such investments had a positive impact on the liquid assets of ALC IC ARKS Life, which in the aggregate exceeded its liabilities in 1,87 times.
The Agency draws attention to that JSC IC ARKS has unprecedentedly high level of external support from the main shareholder with headquarters in Toronto (Canada) – Fairfax Financial Holdings Limited – a holding company which through its subsidiaries is mainly engaged in insurance against accidents, property insurance and investment management.

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National Bank has created ranking of top 20 insurers of Ukraine on collected net premiums in January-September 2022

The leaders of the insurance market of Ukraine in terms of net insurance premiums collected in January-September 2022 were insurance companies ARX (UAH 2.228 billion), “Unica” (UAH 1.813 billion) and SG “TAS” (UAH 1.685 billion, all – Kyiv).

As reported in the main indicators of insurance companies in Ukraine for 8M2012, published on the NBU web site. 2022, the leaders in insurance payments in this period were Unica (980 mln UAH), ARX (775,7mn UAH) and SG TAS (675,6 mln UAH).

Data: NBU, mln UAH

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Collection of premiums “Odessa Regional Insurance Company” collapsed in 9 months by almost 80%

PJSC “Odessa Regional Insurance Company” in January-September 2022 collected insurance premiums in the amount of UAH 2.922 million, which is 78.7% less than in the same period a year earlier.
The rating agency (RA) “Standard-Rating” reported in the information about updating the credit rating / rating of financial stability of the company on the national scale at the level of “uaA +” for 9 months. 2022.
Receipts from individuals during this period decreased by 52.26% to UAH 992 thousand, and there were no receipts from reinsurers. Thus, according to the results of nine months of 2022, the share of individuals in the gross premiums of the insurer amounted to 33.95%, and legal entities dominated the company’s client portfolio.
According to the results of the first three quarters of 2022, they showed a downward trend. Thus, the insurer’s net premiums decreased by 78.51% to UAH 2.922 million, and earned premiums – by 44.98% to UAH 6.454 million.
The volume of insurance payments and indemnities made by the company for the nine months of 2022 compared to the same period in 2021 decreased by 86.08% to UAH 168 thousand, and the level of payments decreased by 05 o.p. up to 5.75%.
The company’s operating profit for the nine months of 2022 compared to the same period in 2021 decreased by 67.75% to UAH 7.651 million, while net profit decreased by 42.70% to UAH 16.164 million.
The insurer’s assets increased by 8.96% to UAH 113.913 million, equity increased by 25.01% to UAH 80.783 million, liabilities decreased by 17.02% to UAH 33.13 million, cash and cash equivalents increased by 26.60% to UAH 49.408 mln.
At the same time, as of October 1, 2022, the company formed a portfolio of investments in government bonds in the amount of UAH 28.655 million, which had a positive effect on the provision of the insurer with liquid assets, which in total were 2.36 times.
Odessa Regional Insurance Company was registered in 2000 and specializes in risky types of insurance.

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Insurers of Ukraine in first half of 2022 collected almost UAH 18 bln of net premiums

Insurance companies of Ukraine in January-June 2022 collected net premiums in the amount of UAH 17.721 billion (which is 24.6% less than in the same period in 2021 (UAH 23.480 billion), according to the main performance indicators of insurance companies companies (by institutions) for the first half of 2022, published on the website of the National Bank of Ukraine (NBU).
According to the regulator, the volume of written insurance premiums collected by insurers for the specified period amounted to UAH 17.608 billion, which is 28.9% less compared to the first half of 2021 (UAH 24.780 billion).
In six months, insurers paid UAH 5.934 billion of insurance claims (which is 30.6% less than in the first half of a year earlier (UAH 8.552 billion).
As of June 30, 2022, the assets of Ukrainian insurers on the balance sheet amounted to UAH 65.474 billion, while as of the same date a year earlier – UAH 65.186 billion
The regulator also reports that in the first half of the year the volume of formed insurance reserves increased by 4% – up to UAH 36.438 billion.
According to the NBU, the total number of insurance companies in Ukraine as of June 30, 2022 is 137, while as of the same date a year earlier it was 181.

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INSURANCE COMPANIES OF UKRAINE IN 2021 INCREASED COLLECTION OF NET PREMIUMS AND PAYMENTS

Insurance companies of Ukraine in 2021 collected net premiums in the amount of UAH 45.987 billion, which is 14% more than in 2020 (UAH 40.350 billion), the National Bank of Ukraine reported on its website.
According to the regulator, the volume of gross insurance premiums collected by insurers last year amounted to UAH 49.708 billion, which is 10% more than a year earlier (UAH 45.185 billion). Of these, receipts from individuals amounted to UAH 27.912 billion, from reinsurers – UAH 1.890 billion (in 2020 – UAH 4.201 billion).
In addition, according to the regulator, in 2021, Ukrainian insurers paid UAH 17.671 billion of net insurance payments (+22.3% by 2020). The level of net payments increased to 38.4% from 35.8%.
According to the NBU, gross insurance payments increased by 20.9% to UAH 17.958 billion. The level of gross payments increased to 36.1% from 31.9%
According to the regulator, the volume of insurance payments owned by reinsurers in 2021 amounted to UAH 8.623 billion (+1.6%), of which non-resident reinsurers – UAH 4.9023.652 billion (+34.3%).
The regulator also reports that last year the volume of formed insurance reserves increased by 7.2% – up to UAH 36.566 billion. At the same time, with a decrease in the total assets of insurers by 1.1%, to UAH 64.209 billion, the volume of assets determined by law to represent insurance reserves increased by 2.3% compared to 2020, to UAH 47.159 billion. The volume of paid authorized capital decreased by 18.7% – to UAH 7.924 billion.
The regulator also reports that in 2021, 131.562 million contracts were concluded, while a year earlier, 120.586 million insurance contracts were concluded.
According to the NBU, the total number of insurance companies in Ukraine as of December 31, 2021 was 155, while on the same date a year earlier it was 208.

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GREEN CARD PREMIUMS IN UKRAINE GROW BY 45% – EXPERTS

Accrued insurance premiums under Green Card international insurance policies signed by member companies of the Motor (Transport) Insurance Bureau of Ukraine (MTIBU) grew by 45.4% in January-February 2022 compared to the same period in 2020, to UAH 422.7 million.
As reported on the MTIBU website, the number of Green Card policies concluded over this period rose by 90.2%, to 186,300.
At the same time, the amount of compensation paid on claims decreased 0.72%, to EUR 1.836 million, while the number of paid claims fell by 0.24%, to 823.
MTIBU is the only association of insurers that provides compulsory insurance of civil liability of owners of ground vehicles for damage caused to third parties.
Green Card is a system of insurance coverage for victims of a road traffic accident, regardless of their country of residence and the country of registration of the vehicle. The Green Card covers the territory of 47 countries in Europe, Asia and Africa.
According to the decision adopted by the General Assembly of the Council of the Bureaux of the Green Card international auto insurance system in Luxembourg in May 2004, Ukraine since January 1, 2005 has been a full member of this system.

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