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01.02.2011
Credit-Rating assigns OMEGA Insurance Company uaAins
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it assigned its insurer strength rating of uaAins to Kiev-based Omega Joint-Stock Insurance Company CJSC (‘company’). In the course of the rating procedure Credit-Rating considered company’s financial statements for 2006-2009 and 9M2010 and its other inside information.
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 that in insurance companies carrying lower ratings.
Factors maintaining the credit rating
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The company is associated with Finance and Credit financial and industrial group, which facilitates in company’s development, preservation of the customer base due to cooperation with the group’s participants, associated companies and their staff.
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High level of provisioning insurance activities with the equity (the ratio of net provisions to the equity was reported at around 10% as at Oct. 1, 2010, with the equity exceeding several times the amount of net insurance premiums).
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High indicators of performance efficiency recorded in the past 5 years, which enabled the company to substantially augment its equity to UAH734m as at Oct. 1, 2010 from UAH275.8m as at Jan. 1, 2007.
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Low indicator of the aggregate indicator of loss of less than 30% in the past 5 years.
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Sufficient diversification of assets that represent insurance reserves.
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Acceptable diversification of company’s bank deposits by financial institutions.
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Low debt burden.
Factors constraining the credit rating
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Poor diversification of the company’s portfolio by types of insurance (around 50% of premiums attracted by insuring of loans and of financial risks).
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Small portion of highly liquid assets in the company’s investment portfolio.
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Decreased amount of attracted insurance premiums (in 9M2010 the amount of gross insurance premiums was 14% less than in similar year-earlier period).
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Risks of redistribution of the company’s resources with no consideration to priorities of insuring activities, which is affected by links with legal entities that are associated with Finance and Credit group.
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Company’s risky investment policy (as at Oct. 1, 2010 the amount of investments in securities was recorded at UAH539m or 74% of the equity).
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Impact of adverse factors on the financial market and subsided business activities in certain sectors, which may result in decline in company’s key figures.
Information on all credit ratings assigned in accordance with the National Rating Scale may be found in THOMSON REUTERS and BLOOMBERG information systems.
For more information, please contact:
Department of
Information and Communications
Sergey Rozumyak +38044490 25
50
SRozumyak@credit-rating.com.ua
Denis
Rudenko
DRudenko@credit-rating.ua
