RUSSIA: RAEX national rating agency confirmed rating of ERGO at ruAA+, stable forecast

National rating agency RAEX (Expert RA) confirmed rating of ERGO, an insurer included into TOP-30 based on 2017 result, at ruAA+, stable forecast, informed the portal ASN.

The main business of ERGO is moto insurance (Motro Hull and MTPL). The insurer demonstrates high growth rate of equity (+22.7% for the period from 31.03.2017 to 31.03.2018). But at that the growth rate of premiums is rather low: in 2017 only 5% growth compared to 2016. Besides the insurer has low portfolio diversification with moto insurance prevailing (in 2017 Motor Hull share in premiums amounted to 60.4%, and moto insurance in total generated 84.3% of the company's GWP). However, the rating action was positively affected by the insurer's Motor Hull low loss ratio (45.4% in 2017).

The rating was positively affected also by the insurer's high diversification of the clients' base (in 2017 the share of 5 biggest clients amounted to 3.6% of premiums); low level of terminated agreements (1.2% in 2017) and high diversification of sales channels (in 2017 the share of individual agents amounted to 38.9%). The key factor with positive influence on the rating, pointed out by RAEX, was high potential of the company's shareholder, ERGO International Aktiengesellschaft, a member of MUNICH Re Group.

Follow XPRIMM Publications on LinkedIn, for more data on the insurance and financial industry.

Share |

Related articles

RUSSIA: SOGAZ and VTB merge completed

SOGAZ and VTB group completed 100% of the transfer of VTB Insurance. The merge involves all the companies of VTB group, including VTB Life insurance and VTB health insurance. All necessary approvals from regulatory authorities were received, according to SOGAZ.

2018-11-01

RUSSIA: national rating of SiV Life confirmed at ruAA

Expert RA confirmed the rating of SiV Life at ruAA with a stable forecast. As the key positive rating factor the agency pointed to the high financial potential of the company's owner, Talanx AG, one of the leaders in the European insurance market with high international ratings.

2018-11-01

ON THE MOVE

IGI appoints its first Chief Technology Officer

International General Insurance Holdings Limited (IGI), the international specialist commercial insurer and reinsurer, has announced the appointment of Nasser ZAGHA to the newly-created role of Chief Technology Officer.

15.11.2018

TOP EVENT

Reducing the risks in agriculture by using insurance means, discussed in Skopje

On November 1st, an Agricultural insurance conference took place in Skopje, Macedonia, organized by the Insurance Supervision Agency in cooperation with the Ministry of Agriculture, Forestry and Water Economy. Drawing attention to the necessity of reducing the risks in agriculture by using insurance was the event's main purpose.

06.11.2018

IIF 2018 - Insurance in a DIGITAL WORLD

Emmanuel DJENGUE, Innovation Director, Europe - RGAX, Spain is the Keynote Speaker at IIF 2018 - Insurance in a DIGITAL WORLD Conference in Bucharest, on November 27.

05.11.2018

See all