ТОВ „Стандарт-Рейтинг” (Украина)
04071, Україна, м. Київ,
вул. Введенська 4,
тел. +38 /044/ 383-59-64
факс +38 /044/ 383-27-50
http://www.standard-rating.com/
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Standard-Rating (Ukraine) LLC
04071, Ukraine, Kyiv,
Vvedenska St. 4,
tel. +38 /044/ 383-59-64
fax +38 /044/ 383-27-50
http://www.standard-rating.com/
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04/12/2014
Ratings of PrJSC IC «JUPITER VIENNA INSURANCE GROUP» are updated
December 04, 2014 Rating agency «Standard-Rating» has updated the financial stability rating/ the credit rating to Private JSC «JUPITER VIENNA INSURANCE GROUP» at the level uaAA+. The insurer with rating uaAA+ is characterized by a very high financial stability compared to other Ukrainian insurers. Making decision of confirming the rating at such a high level, the Agency was guided by the results of the Insurer’s activity in the 9 months of 2014.
1. For the 9 months of 2014 Private JSC IC «JUPITER VIENNA INSURANCE GROUP» has collected UAH 32,095 mln of insurance premiums that is by 9,58% more than for the same period of 2013. Private JSC IC «JUPITER VIENNA INSURANCE GROUP» is one of the few companies in the life insurance market, which has provided the increase in insurance premiums in difficult economic period. This fact deserves a positive assessment of the Agency.
2. For the 9 months of 2014 Private JSC IC «JUPITER VIENNA INSURANCE GROUP» has paid UAH 0,421 mln that is by UAH 0,131 mln or by 45,13% more than for the same period of 2013. As a result, the ratio of endowment claims paid to insurance premiums has increased by 0,32 p.p. up to 1,31%.
3. Acquisition costs for the 9 months of 2014 have amounted to UAH 5,131 mln that is by 41% less than for the same period of 2013. The ratio of acquisition costs to insurance premiums has decreased by 13,71 p.p. down to 15,99% that also deserves a positive assessment.
4. According to the results of the 9 months of 2014 net profit of the insurer has amounted to UAH 2,288 mln that is by 41,15% more than for the same period of 2013. A significant increase in net profit in difficult economic conditions deserves a positive assessment.
The Agency reminds that the Company finished the 2013 year with net profit of UAH 1,91 mln.
Table 1
Key indicators of income and expenses of Private JSC IC «JUPITER VIENNA INSURANCE GROUP» (30434963) in the 9 months of 2014, th. UAH, %, p.p.
#
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Indicators
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9 months of 2014
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9 months of 2013
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Change
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Growth rate, %
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1
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Gross insurance premiums
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32095
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29288
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2807
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9,58%
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2
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Endowment claims paid
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421
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290
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131
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45,13%
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3
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Endowment claims paid/Gross premiums ratio
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1,31%
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0,99%
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0,32 p.p.
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-
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4
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Acquisition costs
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5131
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8697
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-3566
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-41,00%
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5
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Acquisition costs/Insurance premiums ratio
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15,99%
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29,69%
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-13,71 p.p.
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-
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6
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Net profit
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2288
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1621
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667
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41,15%
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5. For the period from 01.01.2014 to 01.10.2014 insurance reserves of the insurer have grown by 55,69%. Despite a significant increase, Private JSC IC «JUPITER VIENNA INSURANCE GROUP» provides the coverage of insurance reserves with assets in full.
It should be noted that, considering the unstable situation in the currency market, Private JSC IC «JUPITER VIENNA INSURANCE GROUP» as before continues to offer the clients the foreign currency programs of accumulative life insurance. At the same time, currency risks of the insurer are minimized, the structure of currency assets and liabilities is optimally balanced.
Private JSC IC «JUPITER VIENNA INSURANCE GROUP» in full, with a significant reserve, fulfills all the legislative normative indicators of the National Commission on Regulation of the Financial Services Market, including:
- the norm of actual reserve of solvency (+38,036 mln. UAH)
- the norm of net assets (+10,601 mln. UAH)
- the new norm (entered into force since 24.04.2014) on asset volume, which are accepted for covering insurance reserves (+11,391 mln. UAH)
6. For the period from 01.01.2014 to 01.10.2014 liquid assets of the insurer have grown by 23,72% up to UAH 97,952 mln.
Table 2
Key balance sheet indicators of Private JSC IC «JUPITER VIENNA INSURANCE GROUP» (30434963) in the 9 months of 2014, th. UAH, %, p.p.
#
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Indicators
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01.10.2014
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01.01.2014
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Change
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Growth rate, %
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1
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Assets
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174300
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126709
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47591
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37,56%
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2
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Shareholders’ equity
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44231
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41943
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2288
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5,46%
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3
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Liabilities
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130069
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84766
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45303
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53,44%
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4
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Liquid assets
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97952
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79175
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18777
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23,72%
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5
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Proportion of liquid assets in the insurer’s assets
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56,20%
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62,49%
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-6,29 p.p.
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-
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6
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Liquid assets/Liabilities ratio
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75,31%
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93,40%
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-18,10 p.p.
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-
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7. The Agency reminds that an unprecedented high level of external support of Private JSC «JUPITER VIENNA INSURANCE GROUP» is provided by the insurer’s shareholder – the international insurance group with headquarters in Austria VIENNA INSURANCE GROUP Wiener Stadtische Versicherung AG. VIENNA INSURANCE GROUP Wiener Stadtische Versicherung AG (VIG) is represented by 50 companies in 24 countries and is the leader of the insurance market of Central and Eastern Europe.
According to the results of the 9 months of 2014 VIG has demonstrated a number of positive trends compared to the same period of 2013:
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Profit of VIG has grown by 36,4% up to EUR 430,8 mln;
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Earnings per share (EPS) has grown by 65,5% up to EUR 3,26;
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Premiums have remained to be stable at the level of EUR 7 bn;
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The combined ratio has decreased down to 97,2% that indicates the increase in the profitability of the group’s operations in segment of classic insurance.
Therefore, Private JSC IC «JUPITER VIENNA INSURANCE GROUP» has finished the 9 months of 2014 with the increase in insurance premiums, the Company’s activity has been profitable and at the same time the insurer has demonstrated a confident increase in net profit.
The key shareholder of the Company VIENNA INSURANCE GROUP has shown good fundamental results for the 9 months of 2014 by demonstrating the increase in activity scales and the profitability of operations. The above factors have enabled the Agency to confirm the insurer’s rating at a high level.
RA «Standard-Rating» (Ukraine)
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