«Expert Rating» renewed financial stability rating of the insurance company «BROKBUSINESS» at the level «uaAA-»

Експерт рейтингSeptember 2, 2015 at the meeting of the Rating committee of RA «Expert-Rating» it was decided to update  the  financial  stability  rating  of  the  insurer  Private  JSC  «Insurance  company  «BROKBUSINESS» (20344871) at the level uaAA- according to the national scale. Confirming the rating at such level, the Agency was guided by the results of the Company’s activity for the first half of 2015. 

 «Basic indicators of IC «BROKBUSINESS» activity.

Indicators
I half of 2015 (30.06.2015)
I half of 2014 (30.06.2014)
Change
Growth rate, %
Total assets, th. UAH 244 560,0 257 560,0 -13 000,0 -5,05%
Shareholders’ equity, th. UAH 161 579,0 166 528,0 -4 949,0 -2,97%
Gross liabilities, th. UAH 82 981,0 91 032,0 -8 051,0 -8,84%
Shareholders’ equity/Liabilities ratio, % 194,72% 182,93% 11,78п.п.
Cash and cash equivalents, th. UAH 92 678,0 112 360,0 -19 682,0 -17,52%
Cash and cash equivalents/ Liabilities ratio, % 111,69% 123,43% -11,74п.п.
Total gross premiums, th. UAH 61 092,7 73 515,0 -12 422,3 -16,90%
Proportion of insurance premiums, belonged to the reinsurers, th. UAH 6 354,1 9 538,0 -3 183,9 -33,38%
Insurance premiums, belonged to the reinsurers/Gross premiums ratio, % 10,40% 12,97% -2,57п.п.
Insurance indemnities and reimbursements, th. UAH 17 267,6 15 393,0 1 874,6 12,18%
Insurance indemnities/Gross premiums ratio for the period, % 28,26% 20,94% 7,33п.п.
Financial result from operating activities, th. UAH 11 402,0 36 261,0 -24 859,0 -68,56%
ROS, % 18,66% 49,32% -30,66п.п.
Net profit (loss), th. UAH 9 557,0 39 461,0 -29 904,0 -75,78%
ROE, % 5,91% 23,70% -17,78п.п.

Source: data of Private JSC «IC «BROKBUSINESS», calculations by RA «Expert-Rating»

  1. Assets of IC “BROKBUSINESS” at the end of the first half of 2015 have amounted to UAH 244,56 mln. For the period from 30.06.2014 to 30.06.2015 shareholders’ equity of the Insurer has decreased by 2,97% down to UAH 161,58 mln, and gross liabilities have reduced by 8,84% down to UAH 82,98 mln. As a result, the ratio of shareholders’ equity to the Company’s liabilities has grown by 11,78 p.p. up to 194,72%.
  2. Cash at the Company’s accounts as at the end of the first half of 2015 has amounted to UAH 92,68 mln. The decrease  in  the  balance  of  liquid  assets  has  slightly  reduced  the  ratio  of  cash  to  liabilities  of  the Insurer, but, despite that, the Company maintains liquidity at a very high level (111,69%).
  3. For the six months of 2015 the Company has collected UAH 61,09 mln of insurance premiums that is by UAH  12,42  mln  lower  than  the  indicator  of  the  first  half  of  2014.  Insurance  indemnities  and reimbursements in the analyzed period have amounted to UAH 17,27 mln that by 12,18% exceed the indicator of the six months of 2014. As a result, the indemnities’ level of the Company has grown by 7,33 p.p. and has amounted to 28,26%.
  4. The  decrease  in  business  activity  and  the  growth  of  costs  have  negatively  affected  the  financial results  of  the  Insurer.  Thus,  the  financial  result  from  operating  activity  has  decreased  by  68,56%  and  has amounted to UAH 11,4 mln. Net profit of the Company for the first half of 2015 has amounted to UAH 9,56 mln. However,  the Agency appreciates  the fact of profitable activity of  the Company  in a difficult economic period.

Analysis of IC «BROKBUSINESS» statements for the first half of 2015 has shown a very high level of capitalization  and  liquidity  of  the  Insurer,  the  Company’s  activity  has  remained  profitable.  These  factors enable  the Agency  to  confirm  the  financial  stability  rating  of  IC  “BROKBUSINESS”  at  the  level  uaAA- according to the national scale.» – Said in the rating agency «Expert Rating» report.

«BROKBUSINESS» Insurance Company is Ukrainian national scale company working in the insurance market of Ukraine since December 1993. The main shareholder is JSC «Closed non-diversified corporate investment fund «Cascade-Invest» (Ukraine) – 50%, other 50% belong to legal entities-non-residents.
Regional network currently has about 50 branches throughout Ukraine. It has 38 licenses, 20 of which – voluntary, 18 – obligatory insurance.
Since 2009 the company has certificate of quality management system ISO 9001: 2008. Since 2011 the rating agency «Expert Rating» awarded «BROKBUSINESS» Insurance Company as one of the highest ratings of financial stability in Ukraine according to national scale on the «uaAA-« level which fulfills «A-« rating in the international scale.
Страховая компания Брокбизнес