(Translation from Russian) Ratings of IC «BUSIN» are confirmed September 04, 2014 RA «Standard-Rating» has decided to update the credit rating / the financial stability rating of the insurer Private 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 compared to other Ukrainian insurers. The rating of JSC IC “BUSIN” has been confirmed on the basis of the analysis of the Company’s activity in the H1 of 2014.
1. For the first quarter of 2014 gross premiums of IC “BUSIN” have grown by 27,45%, net premiums have decreased by 50,44%, earned premiums have decreased by 55,47%. Multidirectional dynamics of business volumes is typical for IC “BUSIN” as for the Company, which specializes in the work with large risks. If we take into consideration the specifics of the Company’s business, then precisely the dynamics of gross premiums mostly reflects the real volumes of the insurer’s business.
The Agency also pays attention that for the first half of 2014 IC “BUSIN” has paid UAH 4,45 mln that is in 7,78 times more than for the same period of 2013. Due to a significant increase in indemnities according to the results of the first half of 2014 the level of indemnities has grown by 10,91 p.p.
The increase in indemnities hasn’t considerably affected the financial result of the insurer. In the H1 of 2014 IC “BUSIN” has earned UAH 9,67 mln of net profit that is by 181,18% more than according to the results of the first six months of 2013.
In the whole, the Agency gives a positive assessment to the dynamics of indicators of business activity and profitability of IC “BUSIN” operations in hryvnia equivalent.
Key indicators of income and expenses of JSC IC «BUSIN», th. UAH, p.p., %
2. For the first six months of 2014 shareholders’ equity of IC “BUSIN” has grown by 8,29% up to UAH 58,78 mln, and liabilities have decreased by 6,70% down to UAH 67,2 mln. As a result of such dynamics the ratio of shareholders’ equity to liabilities has grown by 12,11 p.p. up to 87,47%. The Company has increased the reserve of the liabilities provision with shareholders’ equity that in conditions of business activity drop deserves a positive assessment.
Since the beginning of the year assets of the insurer have grown by 25,09%. The ratio of liquid assets to liabilities has grown by 14,67 p.p. up to 57,73%. The Agency gives a positive assessment to the increase in the Company’s liquidity. Against the background of the deterioration of business activity level in Ukraine the increase in liquidity reserve decreases the credit risks of the insurer.
Key balance sheet indicators of JSC IC «BUSIN», th. UAH, p.p., %
Growth rate, %
Shareholders’ equity/Liabilities ratio
Proportion of liquid assets in the insurer’s assets
Liquid assets/Liabilities ratio
Therefore, IC “Busin” has entered the second half of 2014 with a growing volume of gross business, a considerable increase in profitability, an increase in capitalization and a growing reserve of liquidity. The Agency positively assesses the dynamics of financial indicators of the insurer and indicates that the Company’s management has prepared to the work in difficult economic conditions.