OREANDA-NEWS. September 22, 2009. Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it assigned its insurer strength rating of uaAins to European Insurance Alliance CJSC (‘company’). In the course of the rating procedure Credit-Rating considered company’s financial statements for 2008 and 1H2009, its other inside information, and data obtained from public available sources.

The insurer strength rating exhibits the agency’s opinion regarding capability and willingness of an insurance company, which operates in Ukraine, to meet its commitments on repayment of insurance reimbursements/cumulated insurance amounts in a timely and full manner. While conducting a rating procedure the agency makes an in-depth research of the company’s policy concerning repayments of reimbursements to individuals, company’s loyalty towards its customers, sustainability to market adversities, liquidity of assets representing insurance reserves, banks with which the company’s funds are deposited, and the company’s projections for expansion.

The insurer strength rating is assigned pursuant to the scale, which is specially developed for insurance sector. Thus, while assigning an insurer strength rating we make comparisons with Ukraine’s insurance companies only, leaving beyond other economic entities.

The strength of insurance companies bearing uaAins rating is high, with their capacity, reputation and loyalty to customers being higher than those of Ukrainian companies assigned lower ratings, though they are more vulnerable to impact of adverse commercial financial and economic factors than the companies bearing uaA+ins rating. The probability of failure to timely make insurance payments/repay cumulated insurance amounts is lower than those in insurance companies with lower ratings.

European Insurance Alliance CJSC is the first Ukraine’s financial institution assigned this type of rating.

Factors maintaining the rating

Adequate quality and terms for settlements of losses under gradual decline in portion of claimed yet unpaid losses in company’s general reserves to 5% in 1H2009 compared with 7.1% in 2008.

Retention of relative balance in the portfolio of raised insurance premiums under turbulence in the market.

Company’s low debt burden.

Company’s transparency and information openness.

Factors constraining the rating

Crisis in Ukraine’s financial market, which weighs on company’s key figures.

Poor diversification of assets by classes representing insurance reserves.

Exposure to plunge in performance indicators in case the downward trend in the amount of insurance payments earned retains.