November 2, 2018 at the meeting of the rating committee Rating agency “Standard-Rating” assigned the credit rating/the financial stability rating to Private Joint-Stock Company “Ukrainian agro-insurance company” (22800936) at the level uaAA according to the national scale. The insurer with rating uaAA is characterized by a very high financial stability compared to other Ukrainian insurers. The stability level is susceptible to the impact of adverse commercial, financial and economic conditions. Making decision of assigning the rating, the Agency was guided by the following conclusions:
1. PrJSC “Ukrainian agro-insurance company” is classified as medium in terms of gross premiums volume of the insurers. The Company demonstrates an acceptable level of indemnities and an ability to maintain the activity under difficult conditions in the insurance market. The Agency appreciates the Insurer’s profitable activity.
2. The Insurer refers to the insurers with average, but quickly growing volume of gross business, has an ability to increase work scales without without involving intermediaries, which confirms the thesis of a high level of professionalism of the managers team of the Insurer. The level of diversification of the insurance portfolio of PrJSC “Ukrainian agro-insurance company” is characterized as good.
3. As of 30.09.2018 PrJSC “Ukrainian agro-insurance company” had a qualitative deposit portfolio. In addition to deposits, the Insurer used other forms of asset retention (government securities). The agency believes that a qualitative deposit portfolio and bonds of internal state loan on the balance sheet of the Insurer have a positive impact on its rating.
4. As of 30.09.2018 PrJSC “Ukrainian agro-insurance company” formed provisions, which correspond to the requirements of Ukrainian legislation. The greatest part of provisions (96,67%) consisted of a reserve for unearned premiums. According to the results of the 9 months of 2018, the level of indemnities of the Company did not exceed the average market value and amounted to 7,71%.
5. The Agency draws attention to the availability of reserved equity. At the same time, the level of provision of liabilities with the Insurer’s equity keeps exceeding 100%. As of 30.09.2018 the ratio between shareholders’ equity and liabilities of the Insurer amounted to 310,4%.
6. In the Agency’s opinion, the Insurer’s shareholder has a good reputation in the Ukrainian market, under its partial control there is one of the largest agroholdings of Ukraine. The Insurer’s shareholder can provide it, if necessary, with any level of financial support, but such support at the moment of performing analysis to the Insurer was not required.
