On February 5, 2018, based on the results of the study, the rating committee of RA "Standard-Rating" (Ukraine) made a decision to assign a credit rating / financial stability (reliability) rating of the insurer to the additional liability company "SPARE Insurance Company ("Spare", EDRPOU code 39213513) at the uaA+ level on the national scale.
When making the decision to assign a rating, the agency was guided by the following conclusions:
- SPARE Insurance Company belongs to the category of small insurers. The company demonstrates a high level of payments and the ability to generate profit in difficult economic times, is well managed and has a certain margin of safety due to the presence of high-quality reinsurance coverage and liquidity.
- The company receives more than 70% of its gross business from legal entities. 90% of the gross premiums of the SPARE Insurance Company are accounted for by one type of insurance (third party liability insurance). The revealed fact characterizes the level of diversification of the company by types of insurance as close to satisfactory.
- In 2017, the company significantly increased its claims against reinsurers (from UAH 0.2 thousand to UAH 13.524 million), cash on current accounts increased by 16.74 times, and real estate increased by 180.45%. As of the beginning of 2018, the company's accounts had UAH 7.243 million, which is 150.38% compared to the annual volume of payments of the insurer, and 25% of its liabilities. When considering the statistics on the insurer's liquidity, it should be taken into account that a significant amount of the company's liabilities is covered by reinsurance.
- On As of 12/31/2017, the ratio between the insurer's equity and liabilities was 111.03%, which exceeds the average market value for companies specializing in classic insurance. According to the agency, based on the results of the SPARE Insurance Company for 2016 and 2017, the company will not need shareholder support in the following periods.
- During its operation, the company has not had any legal disputes with counterparties, tax authorities, or financial market regulators. At the time of the rating assignment, the insurer had no tax debt.
Source: Interfax-Ukraine
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