RUSSIA: National Rating Agency Expert RA improved financial strength rating of SOGLASIE to ruBBB+, forecast stable
The rating action was driven by improvement of the company's operating result, especially decrease of its main activity's loss ratio (Motor Hull), which let the insurer last year reach operational breakeven point, wrote ASN portal. Although SOGLASIE is a universal insurer, its main activities are Motor Hull and MTPL. At that the insurer's portfolio is marked by high diversification by types and regions (in 2017 the share of Motor Hull was 40.9%, and the share of its main region amounted to 56.3% of GWP).
Also among positive rating factors, pointed by the agency, are medium high diversification of clients' base (in 2017 the share of its 5 biggest clients in premiums was 13.8%) and sales channels (the main sales channel (agent network) in 2017 generated 51.4% of GWP). The company's assets' quality is assessed by the agency as medium high, the quality of the insurer's reinsurance coverage - as high. All biggest risks are safely reinsured. According to the agency the insurer has adequate quality of management and strategic planning.
Based on RAEX data as of 31.03.2018 the insurers' assets amounted to RUB 42.2 billion*, equity capital - RUB 8.2 billion, charter capital - RUB 5.6 billion, and last year SOGLASIE produced RUB 33.3 billion** of GWP, which includes the company into TOP-15 companies of the local market.
*EUR 1 = RUB 70,5618 (as of 31.03.2018)
**EUR 1 = RUB 68, 8668 (as of 31.12.2017)