Increase in Insurance Premiums and Indemnities amid the Decline in the Social Activity

07/ 04/ 2021

Based on 2020 results, JSC “Insurance Company ”INGO” collected over UAH 1.6 billion of insurance premiums, which exceeds its indicators by 8% compared to the same period of 2019. The overall positive dynamics was primarily ensured by a significant increase in premiums in personal insurance and specialty lines. The companys financial result amounted to UAH 164 million. Amount of premiums from legal entities - UAH 1,162 mln Amount of premiums from individuals – UAH 483 mln Insurance indemnity – UAH 768 mln Insurance reserves – UAH 1,127 mln Highly liquid assets – UAH 1,726 mln Net profit – UAH 92 mln Paid taxes to treasuries at all levels – UAH 133 mln As part of DCH INGO has all the opportunities for dynamic development, including through a synergy with other assets of the group, - said President and Founder of DCH Group Alexander Yaroslavskyi. This is evidenced by both achieved indicators and projects of implementation of innovative technologies, which are at different stages - from development to practical implementation. CEO of JSIC “INGO” Igor Gordienko notes that the company plans to pursue a transformation strategy aimed at developing advanced analytics, creating a new range of products and services, distribution channels, as well as staff development and training. Last year, despite the high turbulence of external environment, the company continued to implement projects for improving its operational efficiency and creating the innovative environment, Mr. Gordienko said - In 2020, we received above-plan financial results, implemented a series of business and IT projects. During this year, the changes also took place in the behavior of insurance services clients. Consequently, the approaches to individual insurance products and the products themselves are changing. In medicine, the demand for remote services is increasing, the number of visits to clinics has decreased. The level of medicine use has also decreased. The current situation with COVID-19 has only increased the importance of health protection, so the insurance premiums and indemnities in the health insurance are steadily increasing. The volume of premiums increased by 33.7% compared to the last year. The insurance medicine is still a corporate trend, but there are more and more prerequisites for shifting its significant share to the private sector. The demand for new products in CASCO motor insurance was growing, in particular the products with a variable cost (the insurance rate is formed on the basis of telematic data). The total volume of premiums in the CASCO segment exceeded last years figure by 3% after a temporary reduction in demand in Q1, 2020. There was no business decline in the segment of CTPLI (growth + 36%). The volume of premiums (+ 5%) also increased in voluntary liability insurance. Considering the implementation of lockdown measures and border crossing restrictions, the sales of ‘Green Card’ insurance and overseas travel insurance contracts significantly dropped. Due to the legislative amendments on the alternative energy, the volume of construction of new solar power and wind power plants substantially decrease. The development of the branch which was the driver of growth in property insurance in 2019, actually stopped. At the same time, a marked increase of infrastructure building (roads, bridges) was observed. Under its liabilities to clients during 2020, “Insurance Company “INGO” paid over UAH 768 mln (+17%) and settled over 145 ths insured events. At the same time, due to the rapid decline in social activity in the first half of 2020, the number of insured events decreased in all classes of insurance (-19%). The volume of long-term liabilities and security as of 31.12.2020 amounted to more than UAH 1.14 billion, which exceeds the last year’s indicators by 6%. The company complies with all regulations and criteria for liquidity, capital adequacy, asset quality and risk exposure of operations. The net asset value as of 31/12/2020 is UAH 711,264 ths. The excess of net assets over amount of authorized capital is UAH 405,721 ths and complies with legislative requirements. The actual solvency margin exceeds the normative solvency margin by UAH 399,528 ths. * * * For reference: JSC “Insurance Company “INGO” has over 25 years of work experience on the market. Since 2017 the Ukrainian business group DCH of Oleksandr Yarovslavskyi has become the major shareholder of the company. The company is one of the largest insurance organizations of Ukraine in terms of the amount of premiums, value of its own assets and amounts of paid indemnities. It holds 29 licenses for different classes of compulsory and voluntary insurance and provides insurance services to corporate and retail clients. INGO is a full member of Motor (Transport) Insurance Bureau of Ukraine (MTIBU), member of the American Chamber of Commerce (ACC), European Business Association (EBA) and International Chamber of Commerce (ICC). On 23/11/2020, the agency “IBI-Rating” affirmed a long-term credit rating of JSIC “INGO” at uaAA according to the national rating scale, with ‘in development’ forecast.

Amount of premiums from legal entities – UAH 1,162 mln
Amount of premiums from individuals – UAH 483 mln
Insurance indemnity – UAH 768 mln
Insurance reserves – UAH 1,127 mln
Highly liquid assets – UAH 1,726 mln
Net profit – UAH 92 mln
Paid taxes to treasuries at all levels – UAH 133 mln

“As part of DCH “INGO” has all the opportunities for dynamic development, including through a synergy with other assets of the group,” – said President and Founder of DCH Group Alexander Yaroslavskyi. “This is evidenced by both achieved indicators and projects of implementation of innovative technologies, which are at different stages – from development to practical implementation.”

CEO of JSIC “INGO” Igor Gordienko notes that the company plans to pursue a transformation strategy aimed at developing advanced analytics, creating a new range of products and services, distribution channels, as well as staff development and training.

“Last year, despite the high “turbulence” of external environment, the company continued to implement projects for improving its operational efficiency and creating the innovative environment,” Mr. Gordienko said – “In 2020, we received above-plan financial results, implemented a series of business and IT projects.”

During this year, the changes also took place in the behavior of insurance services clients. Consequently, the approaches to individual insurance products and the products themselves are changing.

In medicine, the demand for remote services is increasing, the number of visits to clinics has decreased. The level of medicine use has also decreased. The current situation with COVID-19 has only increased the importance of health protection, so the insurance premiums and indemnities in the health insurance are steadily increasing. The volume of premiums increased by 33.7% compared to the last year. The insurance medicine is still a corporate trend, but there are more and more prerequisites for shifting its significant share to the private sector.

The demand for new products in CASCO motor insurance was growing, in particular the products with a variable cost (the insurance rate is formed on the basis of telematic data). The total volume of premiums in the CASCO segment exceeded last year’s figure by 3% after a temporary reduction in demand in Q1, 2020. There was no business decline in the segment of CTPLI (growth + 36%). The volume of premiums (+ 5%) also increased in voluntary liability insurance.

Considering the implementation of lockdown measures and border crossing restrictions, the sales of ‘Green Card’ insurance and overseas travel insurance contracts significantly dropped.

Due to the legislative amendments on the alternative energy, the volume of construction of new solar power and wind power plants substantially decrease. The development of the branch which was the driver of growth in property insurance in 2019, actually stopped. At the same time, a marked increase of infrastructure building (roads, bridges) was observed.

Under its liabilities to clients during 2020, “Insurance Company “INGO” paid over UAH 768 mln (+17%) and settled over 145 ths insured events. At the same time, due to the rapid decline in social activity in the first half of 2020, the number of insured events decreased in all classes of insurance (-19%).

The volume of long-term liabilities and security as of 31.12.2020 amounted to more than UAH 1.14 billion, which exceeds the last year’s indicators by 6%.

The company complies with all regulations and criteria for liquidity, capital adequacy, asset quality and risk exposure of operations. The net asset value as of 31/12/2020 is UAH 711,264 ths. The excess of net assets over amount of authorized capital is UAH 405,721 ths and complies with legislative requirements. The actual solvency margin exceeds the normative solvency margin by UAH 399,528 ths.

* * *

For reference:

JSC “Insurance Company “INGO” has over 25 years of work experience on the market. Since 2017 the Ukrainian business group DCH of Oleksandr Yarovslavskyi has become the major shareholder of the company. The company is one of the largest insurance organizations of Ukraine in terms of the amount of premiums, value of its own assets and amounts of paid indemnities. It holds 29 licenses for different classes of compulsory and voluntary insurance and provides insurance services to corporate and retail clients. INGO is a full member of Motor (Transport) Insurance Bureau of Ukraine (MTIBU), member of the American Chamber of Commerce (ACC), European Business Association (EBA) and International Chamber of Commerce (ICC). On 23/11/2020, the agency “IBI-Rating” affirmed a long-term credit rating of JSIC “INGO” at uaAA according to the national rating scale, with ‘in development’ forecast.