Companion IG's Reliability Rating Withdrawn
OREANDA-NEWS. National Rating Agency has withdrawn its reliability rating on Companion IG LLC following cancellation of its license. On withdrawal, the company's rating is lowered to 'BBB-'.
The rating downgrade reflects the insurer's negative premium dynamics (RUB743.5 million in 1Q 2015, a 45% decrease year-on-year), sharply increased combined ratio (133% for 1Q 2015 compared with 95% for 2014) and surging administrative expenses (62% for 1Q 2015), as well as deteriorated asset quality, as recorded on non-reporting dates.
Companion IG's financial investments as of June 1, 2015, were distributed as follows: 33% - in real estate, 31% - in bonds, 18% - in subsidiary and associate companies, and 13% - in mortgage-backed participation certificates.
NRA notes that the company provided inaccurate information concerning the state regulator's instruction and the composition of its financial investments in a rating interview on June 1, 2015.
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