OREANDA-NEWS. December 22, 2011. Credit-Rating assigned insurer strength rating at the level ofuaAinsto Ukrainian Guard Insurance Company (private joint-stock insurance company based in Kiev). In the course of the rating procedure Credit-Rating considered the Company’s financial statements for 2007-2010 and 9M2011 as well as other inside information submitted by the Company within the rating procedure.

The reliability of insurance companies carrying ratinguaAinsis high. Their solvency, reputation and loyalty towards customers is higher than in Ukrainian insurance companies with lower ratings, though they are more vulnerable to impact of adverse commercial financial and economic factors than the companies bearinguaA+insrating. The probability of failure to timely make insurance payments/repay cumulated insurance amounts is lower than those in insurance companies with lower ratings.

Factors maintaining the insurer strength rating:

co-operation with State Guard Service (SGS) subdivisions under the Ministry of Internal Affairs of Ukraine (as SGS is the main shareholder) securing relatively stable insurance premiums flows;

increase in gross insurance premiums as of 9M 2011 (UAH 55.7 mln., increase by more than 100% y-o-y) as well as client base broadening;

sufficient solvency ratio (the actual solvency margin level exceeds more than 300% of the regulatory minimum margin level as of 1 October 2011);

acceptable diversification of assets backing the insurance reserves cover;

relatively low ratio of reserves of losses claimed but not still paid;

lack of the leverage (debt burden);

Company’s information transparency.

Factors constraining the insurer strength rating:

weak market positions caused by poor regional & insurance agents network development;

insufficiently balanced insurance portfolio (2/3 share in gross premiums belongs to financial risks insurance) as well as significant outcoming re-insurance premiums percentage in gross premiums;

sufficient operating expenses ratio compared with the earned insurance premiums;

concentration of insurance premiums, according to premiums paid by the main clients;

impact of adverse factors on the financial market and subsided business activities in certain sectors which may result in decline in Company’s key figures.