Rating of JSC IC «BUSIN» is confirmed at the level uaAA+ RA «Standard-Rating» (Ukraine) confirms the financial stability rating of the insurer JSC Insurance company «Busin» at the level uaAA+ according to the national scale. The insurer with rating uaAA+ is characterized by a very high financial stability comparing to other Ukrainian insurers. The level of stability remains susceptible to adverse commercial, financial and economic conditions.
The rating of JSC IC «Busin» has been confirmed on the basis of the analysis of the company’s results in 2011 (see table).
Key indicators of JSC IC «Busin» in 2011, th. UAH, p.p., %
1. JSC IC «Busin» has gathered UAH 78,73 mln of gross premiums for the 12 months of 2011 that is by 7,38% more than for the same period of 2010. Proportion of population in gross business of the insurer still hasn’t exceeded 2%. The company remains to be dependent on the aviation insurance market. Nevertheless it is exactly the dependence on this segment of the insurance market provides the insurer with a stable growth of gross business and a considerable market share in a relatively narrow market segment.
2. Activity of JSC IC «Busin» has remained profitable following the results of 2011. The Company has earned UAH 19,222 mln of net profit in 2011 that is by 10,64% more than in 2010. The reason for an increase in net profit of the insurer has become a decrease in loss ratio by 1,91 p.p. and a growth of gross business. In 2010-2011 the Company has clearly demonstrated its ability to generate profit, which is significant and sufficient for additional capitalization of the insurer in case it will be necessary.
3. Indicators of solvency and liquidity of the insurer have been also fixed at the high level. Particularly, shareholders’ equity of JSC IC «Busin» has grown by 20%, the shareholders’ equity/liabilities ratio has grown by 24,57 p.p. and it has amounted to 147% on 31.12.2011. Excess capitalization has been accompanied by high liquidity. At the beginning of 2012 IC «Busin» has concentrated almost UAH 40 mln on its accounts, liquid assets have grown by 24,6% over the year, and the liquid assets/liabilities ratio has increased by 20,7 p.p. and it has amounted to 105% on 31.12.2011.
Therefore, the 2011 year may be considered indicative for JSC IC «Busin». Management of the Company has provided the growth in gross business in the unstable market; the Company has shown the increase in net profit due to a decline of loss ratio against the background of a growth of premiums. High capitalization of the Company against the background of excess liquidity has positively affected the insurer’s rating, which, according to the national scale, remains to be the one of the highest in Ukraine among the clients of RA «Standard-Rating».
RA «Standard-Rating» (Ukraine)