Business news from Ukraine

NBU ALLOWES THE MAIN SHAREHOLDER OF VUSO TO ACQUIRE 99.6% OF THE INSURER ASKA

The National Bank of Ukraine (NBU) on December 22, 2021 allowed Altituda closed non-diversified venture corporate investment fund on behalf of, in the interests and at the expense of which PrJSC AMC Altera Asset Management operates, to directly acquire 99.593% of shares of PrJSC Ukrainian Joint-Stock Insurance Company ASKA (Zaporizhia), according to the website of the central bank.
According to the National Securities and Stock Market Commission, as of the third quarter of 2021, Altituda owns 66.0075% of the shares of PrJSC Insurance Company VUSO (Kyiv).
As reported at the end of November 2021, SCM investment company of Rinat Akhmetov announced that it had reached preliminary agreements on the sale of ASKA to VUSO insurance company. The completion of the transaction and the transfer of the corporate rights of ASKA to the buyer must be carried out after all procedures stipulated by the law, obtaining permits and approvals from the NBU.
On December 22, 2021, the NBU decided to cancel 34 licenses for insurance issued to ASKA on the basis of its application, except for the license for compulsory insurance of civil liability of land vehicle owners (OSAGO).
The company was engaged mainly in property types of insurance: property insurance, that against fire risks and risks of natural disasters, cargo and luggage and financial risks.
According to the statements presented by ASKA for the nine months of 2021, the volume of insurance premiums amounted to UAH 853.75 million, the value of assets – UAH 501.1 million, the market share in insurance reserves – 2.55%.
At the same time, the company announced the presence of unfulfilled (overdue) obligations to policyholders (beneficiaries) and valid insurance contracts. At the same time, it provided information on the availability of formed insurance reserves.
ASKA is the first private insurance company that appeared in independent Ukraine, has been operating for over 30 years. It is part of the portfolio of the international investment company SCM.

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VUSO INSURER RAISES GROSS PREMIUM COLLECTION BY 2.5% IN H1

PrJSC Insurance company VUSO (Kyiv) in January-June 2020 collected UAH 454.027 million of gross premiums, which is 2.52% more than in the same period in 2019, the rating agency Standard-Rating reports, confirming the company’s financial strength rating at “uaAA” on the national scale, based on the analysis of the company’s performance for the first half of 2020.
According to the agency report on its website, income from individuals increased by 23.53%, to UAH 323.406 million, and from reinsurers, on the contrary, decreased by 56.64%, to UAH 24.531 million. Thus, the share of individuals in gross premiums increased to 71.23%, while the share of reinsurers decreased to 5.40%, while individuals continue to prevail in the insurer’s client portfolio.
Insurance premiums sent to reinsurers for the first half of 2020 compared to the same period in 2019 decreased by 2.81%, from UAH 185.871 million to UAH 180.644 million. As a result, the coefficient of dependence on reinsurance companies decreased from 41.97% to 39.79%, or 2.18 percentage points.
The insurer’s business activity indicators in the period under review showed a growing trend: net premiums increased by 6.38%, to UAH 273.383 million, and premiums earned by 39.34%, to UAH 330.473 million.
For the six months of 2020 VUSO paid out to its clients UAH 16.846 million of insurance compensations, which is 35.57% more than the volume of payments for the same period in 2019. At the same time, the level of payments increased from 27.62% to 36.53%, or by 8.91 percentage points.
The company’s assets as of June 31 increased by 8.92%, to UAH 693.585 million.

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VUSO INSURER RAISES PREMIUM COLLECTION BY 40% IN 2018

VUSO insurance company (Kyiv) collected UAH 495.662 million of insurance premiums for January-September 2018, which is 40.13% more compared to the same period in 2017, the insurer said in a press release.
According to its data, the main gain compared with the same period last year was provided by voluntary medical insurance, auto insurance (KASKO and OSAGO), bank insurance for a total of UAH 358.71 million.
The most significant increase in premiums was recorded at the expense of KASKO program sales: for the nine months car owners purchased voluntary auto insurance contracts in the amount of UAH 129.456 million, which is 57.9% more than last year’s fees, OSAGO for UAH 107.631 million (21.84% more).
In addition, the company noted an increasing consumer interest in other types of insurance. In particular, the growth in voluntary medical insurance amounted to 34.07%, while those traveling abroad by 17%. At the same time, a significant share in the growth of sales for this type of insurance was that of online sales. The online insurance channel increased sales by 2.5 times.
The company also reports that during this period it paid customers UAH 143.641 million, which is 24.2% more than in the same period a year earlier.
VUSO insurance company has been working in the Ukrainian market since 2001. It owns 24 licenses: 16 for voluntary, and eight for compulsory insurance.

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VUSO RAISES OSAGO PAYMENTS BY 5.75 TIMES

VUSO Insurance Company (Kyiv) in January-June 2018 paid UAH 6.9 million on direct settlement of cases on compulsory insurance of motor vehicle owners’ liability (OSAGO), which is 5.75 times more than in the same period a year earlier.
According to a press release of the insurer, the company’s customers began to use the method of direct settlement of losses more often and apply for compensation of damage to their insurer but not the company where the policy of the person guilty in the accident was drawn up. In this way, VUSO settled 394 insurance cases in the first half of the year, while a year earlier the figure stood at 97.
In total for the reporting period, the company collected UAH 28.5 million of premiums on OSAGO, which is 19% more than in the same period a year earlier. Some 1,717 insurance cases were settled, which is 7% more than for the same period of 2017 (1,605).
The company notes that the average amount of compensation for material damage on road accidents for this type of insurance in the first half of the year increased by 2%, to UAH 13,900.

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