June 1, 2018 RA «Standard-Rating» has decided to update the financial stability rating of the insurer / the credit rating of Private JSC “Insurance group “UBI-COOP” (31113488) at the level uaAA. The insurer with rating uaAA is characterized by a high financial stability compared to other Ukrainian insurers. The level of stability is susceptible to the impact of adverse commercial, financial and economic conditions. In its decision the Agency was guided by the analysis results of the Company’s statements for the first quarter of 2018.

1. Gross premiums, collected for the first three months of 2018 compared to the same period of 2017, have grown by 52,48%: from UAH 16,223 mln. up to UAH 24,737 mln. At the same time, receipts from individuals have increased by 23,39% up to UAH 15,194 mln., and receipts from reinsurers have decreased by 38,86% down to UAH 0,161 mln. The proportion of individuals in gross premiums has reduced by 14,48 p.p. down to 61,42%, and the proportion of reinsurance companies – by 0,97 p.p. t to 0,65%. According to the Agency, such a noticeable growth of gross business volumes deserves a positive assessment.

2. Insurance premiums, sent to the reinsurers for the first quarter of 2018, have amounted to UAH 3,124 mln., that is by 2,61% lower than the same indicator for the same period of 2017. Therefore, the coefficient of dependence on the reinsurance companies has decreased from 19,77% down to 12,63%, or by 7,14 p.p. Business activity indicators of the Insurer have demonstrated an upward trend: net premiums have grown by 66,06% up to UAH 21,612 mln., and earned – by 57,49% up to UAH 21,129 mln.

Table 1

Key indicators of income and expenses of

Private JSC “Insurance group “UBI-COOP” (31113488), th. UAH, p.p., %

3. For the first three months of 2018 the Company has performed indemnities to its policyholders for the amount of UAH 6,225 mln., that by 57,6% exceed the indemnities’ volume performed for the same period of 2017. Considering the faster growth rates of insurance indemnities and compensations over gross premiums, the indemnities’ level has grown from 24,35% up to 25,17%, or by 0,82 p.p.

According to the results of the Insurer’s activity in the first quarter of 2018, the financial result from operating activity has amounted to UAH 1,061 mln., and net profit – UAH 0,294 mln.

4. In the period from 01.01.2018 to 01.04.2018 balance sheet indicators of the Company have demonstrated multidirectional dynamics:

· Assets have decreased by 0,02% down to UAH 93,468 mln.;

· Shareholders’ equity has grown by 0,5% up to UAH 49,714 mln.;

· Liabilities have decreased by 0,61% down to UAH 43,754 mln.;

· Liquid assets have increased by 0,15% up to UAH 22,512 mln.

Therefore, as at the beginning of the second quarter of 2018 the Company has possessed an excessive level of capitalization (113,62%) and a sufficient level of liquidity (51,45%).

Table 2

Key balance sheet indicators of

Private JSC “Insurance group “UBI-COOP” (31113488), th. UAH, p.p., %

Having analyzed the activity of IG “U.B.I.-COOP” for the first quarter of 2018, RA “Standard-Rating” highlights the following factors that have enabled to confirm the financial stability rating of the insurer:

§ Growth of business activity indicators;

§ Good level of indemnities (25,17%);

§ Excessive level of capitalization (113,62%);

§ Sufficient level of liquidity (51,45%).

RA «Standard-Rating» (Ukraine)