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08.02.2011
Credit-Rating rates IC Garant-Systema PJSC
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it assigned its long-term credit rating of uaBBB- (uaBBB minus) with stable outlook to Kiev-based Insurance Company Garant-Systema (‘company’). Credit-Rating has also assigned to the company its insurer strength rating of uaВ+ins.In the course of the rating procedure the agency considered company’s financial statements for 2006-2009 and 9M2010 and its other inside information.
An obligor or a debt liability with uaBBB credit rating is characterized with the SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is affected by adverse changes in commercial, financial and economic conditions. A plus "+" and a minus "-" signs indicate intermediary categories compared to the standard categories (grades).
Stable outlook indicates that there are no anticipated reasons to change the rating in the course of the year.
The reliability of insurance companies rated uaВ+ins is above average. Their solvency, reputation and loyalty towards customers exceed average level. The vulnerability to the impact of adverse commercial, financial and economic factors and probability of troubles with timely making insurance payments/repayment of cumulated insurance amounts is above average among Ukrainian insurance companies.
Factors maintaining the credit rating
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Growth in the amount of insurance premiums (the company earned UAH19.2m in 9M2010 which was 6% more than in similar year-earlier period).
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Sufficient solvency indicators (as at Oct. 1, 2010 the actual provision of solvency exceeded 4 times the required indicator).
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Low specific gravity of claimed by non-paid losses (0.3% as at Oct. 1, 2010).
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Acceptable quality and procedure of loss settlement.
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Low company’s debt burden.
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Information transparency and openness.
Factors constraining the credit rating
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Weak company’s market standing because of unexpanded branch and agent network.
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Volatile pace of insurance payments combined with their high concentrations.
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Small amount of highly liquid assets due to large amount of long-term investments in fixed assets.
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Loss-generating performance prompted by high company’s administrative expenditures (the combined ratio of loss generation exceeded 110% as at Oct. 1, 2010).
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Impact of adverse factors on the financial market, which may undermine company’s performance efficiency.
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
