RUSSIA: rating of VSK confirmed at ruAA, stable outlook

The rating agency Expert RA removed the "under watch" status and confirmed the financial reliability rating of VSK at ru, outlook stable, as ASN wrote.

Removal of the "under watch" status, according to the agency, came from that formation of reserves under liability insurance of 5 development companies - members of Urban Group, did not have a significant impact on the insurer's rating level.

As of the end of September 2018 the current liquidity and adjusted net insurance liquidity of the company were at a rather high level. Also, high deviation of the solvency margin from the standard and a significant free capital stock (54.9% and 49.1% accordingly) had a positive effect on the rating action. The company has a high rate of return on equity (47.3% y-o-y on 30.09.2018), moderately high values of return on investment (4.5%) and return on sales (13.7%).

Insurance portfolio of VSK is highly diversified by types, customer base and geography. For 3 quarters of 2018 the largest line of business (MTPL) generated 24.9% of the insurer's GWP, and the largest region of business (Moscow) accounted for 41.6% of the premiums. Also for the first 9 months of 2018 the net loss ratio amounted to 41.2% and the combined net loss ratio - to 91%.

VSK is one of the TOP-10 insurers of the market. For 9 months of 2018 in terms of GWP the company took the 7th place in the market ranking with its market share of about 14%. The company's market share in 2017 amounted to 5.1%, which, according to the agency, is a rating support factor. Based on the data of Expert RA, on 30.09.2018 the insurer's assets amounted to RUB 102 billion, equity - RUB 23 billion and charter capital - RUB 3.7 billion.

*1 EUR = 76.2294 RUB (September 30th, 2018)

Share |