April 04, 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 12 months of 2017.

1. Gross premiums, collected for the four quarters of 2017, have amounted to UAH 87,906 mln that is by 28,63% more than premiums collected for the same period of 2016. At the same time, receipts from individuals have increased by 58,23% up to UAH 58,94 mln., and receipts from reinsurers have decreased by 72,72% down to UAH 0,93 mln. Thus, the proportion of individuals has grown from 54,51% up to 67,05%, or by 12,54 p.p., and the proportion of reinsurance companies has decreased by 3,93 p.p. down to 1,06%.

The Agency appreciates a noticeable growth of the Company’s gross premiums against the background of unstable work conditions in the Ukrainian insurance market.

2. Insurance premiums, sent to the reinsurers for the 12 months of 2017 compared to the same period of 2016, have grown from UAH 10,231 mln. up to UAH 17,713 mln., or by 73,14%. Therefore, the coefficient of dependence on the reinsurers has increased: by 5,18 п.п. up to 20,15%.

Business activity indicators of IG “UBI-COOP” have demonstrated an upward trend. Net premiums of the Company have grown by 20,80% up to UAH 70,192 mln., and earned – by 23,59% up to UAH 65,778 mln.

Table 1

Key indicators of income and expenses of

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

3. The Company for the 2017 year has performed indemnities to its policyholders for the amount of UAH 18,847 mln., that is by 32,05% higher than indemnities performed for the 2016. Therefore, the indemnities’ level has increased by 0,55 p.p.: from 20,89% up to 21,44%.

According to the results of the 12 months of 2017 the Company has demonstrated unprofitable activity. The Agency notes that the volume of loss is insignificant and doesn’t bear any threat for the Insurer’s financial stability.

4. In the period from 01.01.2017 to 01.01.2018 balance sheet indicators of the Insurer have demonstrated multidirectional dynamics:

· Assets have grown by 33,88% up to UAH 93,489 mln.;

· Shareholders’ equity has increased by 23,06% up to UAH 49,465 mln.;

· Liabilities have grown by 48,57% up to UAH 44,024 mln.;

· Liquid assets have decreased by 6,71% down to UAH 22,479 mln.

Therefore, as at the beginning of 2018 IG “U.B.I.-COOP” has possessed an excessive level of capitalization (112,36%) and a sufficient level of liquidity (51,06%).

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 12 months of 2017, 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 (21,44%);

§ Excessive level of capitalization (112,36%);

§ Sufficient level of liquidity (51,06%).