At the meeting of the Rating Committee on August 31, 2023, the National Rating Agency "Rurik" confirmed JSC "Insurance Company "Krayina"'s long-term borrower credit rating at uaAAA+, an investment category with a "developing" outlook, and also confirmed JSC "Insurance Company "Krayina"'s financial reliability (stability) rating as an insurer at the uainsAAA+ investment category.

The borrower's credit rating is determined on the National Rating Scale, as indicated by the letters "ua" in the credit rating designation. The National Rating Scale allows measuring the distribution of credit risk in the Ukrainian economy without taking into account the sovereign risk of the country and is intended for use in the domestic financial market of Ukraine.

Ratings may be changed, suspended, or withdrawn in case of the appearance of new significant information, insufficient information for updating the ratings, or for other reasons that the agency deems sufficient to take such actions. The rating assessments are not an absolute measure of credit risk but rather the opinion of the rating agency regarding the reliability (creditworthiness) of the rated object relative to other objects.

The determination of rating levels is carried out based on specially developed proprietary methodologies, taking into account the requirements of current Ukrainian legislation and international standards. In no case do the assigned ratings constitute a recommendation for any form of financing of the rated object or the purchase or sale of its securities.

NRA "Rurik" does not act as a guarantor and does not bear responsibility for any debt obligations of the rated object. NRA "Rurik" does not personally conduct audits or other checks of information and may, if necessary, rely on unverified financial data provided by the client. The rating levels depend on the quality, consistency, and completeness of the information available to the Agency.

To determine the ratings, NRA "Rurik" used the internal information and financial statements provided by JSC "Insurance Company "Krayina" for 2021 - 2nd quarter of 2023, as well as public information and its own databases.

During the determination of the rating assessment, the most significant factors affecting the borrower's credit rating level were summarized.

Positive factors:

– High solvency reserves of the Insurer. As of July 1, 2023, the actual solvency reserve significantly exceeded the normative value.

– High liquidity indicators, supported by sufficient amounts of cash on the Company's accounts. The quick liquidity ratio as of July 1, 2023, was 63%, and total liabilities were covered by highly liquid assets 3.1 times.

– Significant experience in the Ukrainian insurance market and strong market positions. According to the results of 2022, the Company was one of the leaders in terms of earned premiums in general and in individual types of insurance (DMS, health insurance for illness, financial risk insurance) in particular.

– Sufficient level of the Company's financial autonomy. As of July 1, 2023, the financial autonomy coefficient corresponded to 45%. The volume of insurance reserves was covered by equity by 97%.

– High level of financial transparency and information openness of the Company, which is reflected in the detailed and comprehensive disclosure of information necessary to determine the credit rating. This has reduced the degree of uncertainty in assessing creditworthiness and analyzing the financial and economic activities of the Company.

Negative factors:

– Low diversification of the Company's insurance portfolio by types of insurance. According to the results of the 1st half of 2023, 40% of earned premiums were accounted for by the key type of insurance, while the three largest types of insurance accounted for approximately 91% of their volume, indicating the Company's high dependence on key types of insurance.

– Like other domestic insurance companies, the activities of JSC "Insurance Company "Krayina" are sensitive to the impact of general political, legal, regional, and macroeconomic sources of risk inherent in Ukraine. The escalation of military aggression by the Russian Federation against Ukraine since February 24, 2022, has had a negative impact on financial markets and the economy as a whole, which may worsen the performance indicators of the Company.

Company Page

04053 Kyiv, Sichovykh Striltsiv st., 52-A