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12.04.2010
Credit-Rating assigns BROKBUSINESS Insurance Company CJSC an insurer strength rating of uaAins
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it assigned an insurer strength rating of uaAins to Kiev-based BROKBUSINESS Insurance Company CJSC (‘company’). In the course of the rating procedure Credit-Rating considered company’s financial statements for 2007-2009 and other data obtained from the sources the agency deems reliable.
The strength of insurance companies bearing uaAins rating is high, with their capacity, reputation and loyalty to customers being higher than those of Ukrainian companies assigned lower ratings, though they are more vulnerable to impact of adverse commercial financial and economic factors than the companies bearing uaA+ins rating. The probability of failure to timely make insurance payments/repay cumulated insurance amounts is lower than those in insurance companies with lower ratings.
The insurer strength rating exhibits the agency’s opinion regarding capability and willingness of an insurance company, which operates in Ukraine, to meet its commitments on repayment of insurance reimbursements/cumulated insurance amounts in a timely and full manner. While conducting a rating procedure the agency makes an in-depth research of the company’s policy concerning repayments of reimbursements to individuals, company’s loyalty towards its customers, sustainability to market adversities, liquidity of assets representing insurance reserves, banks with which the company’s funds are deposited, and the company’s projections for expansion.
The insurer strength rating is assigned pursuant to the scale, which is specially developed for insurance sector. Thus, while assigning an insurer strength rating we make comparisons with Ukraine’s insurance companies only, leaving beyond other economic entities.
Factors maintaining the credit rating
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Adequate quality and terms for settlements of losses under gradual decline in portion of claimed yet unpaid losses in company’s general reserves to 7.3% from 9% in 2009.
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Retention of relative balance in the portfolio of raised insurance premiums under turbulence in the market.
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Highly-liquid assets (cash and bank gold) which contribute to a half of the company’s asset balance as at early 2010.
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Company’s low debt burden.
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Company’s transparency and information openness
Factors constraining the credit rating
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Necessity in further augmenting the company’s authorized stock, taking into account the structure of the company’s equity.
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Risks of redistribution of the company’s resources neglecting priorities of insurance business, which is affected by company’s association with entities united under BROKBUSINESS brand.
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Impact of adverse factors on the financial market and subsided business activities in certain sectors of economy, which may weigh on company’s key figures.
Information on all credit ratings assigned in accordance with the National Rating Scale may be found in REUTERS and BLOOMBERG information systems.
For more information, please
contact:
Information and analytic
department
Sergey Rozumyak +38044490 25
50
SRozumyak@credit-rating.com.ua
Denis
Rudenko
DRudenko@credit-rating.ua
