RUSSIA: rating of VSK confirmed at ruAA, stable outlook
Removal of the "under watch" status, according to the agency, came from that formation of reserves under liability insurance of 5 development companies - members of Urban Group, did not have a significant impact on the insurer's rating level.
As of the end of September 2018 the current liquidity and adjusted net insurance liquidity of the company were at a rather high level. Also, high deviation of the solvency margin from the standard and a significant free capital stock (54.9% and 49.1% accordingly) had a positive effect on the rating action. The company has a high rate of return on equity (47.3% y-o-y on 30.09.2018), moderately high values of return on investment (4.5%) and return on sales (13.7%).
Insurance portfolio of VSK is highly diversified by types, customer base and geography. For 3 quarters of 2018 the largest line of business (MTPL) generated 24.9% of the insurer's GWP, and the largest region of business (Moscow) accounted for 41.6% of the premiums. Also for the first 9 months of 2018 the net loss ratio amounted to 41.2% and the combined net loss ratio - to 91%.
VSK is one of the TOP-10 insurers of the market. For 9 months of 2018 in terms of GWP the company took the 7th place in the market ranking with its market share of about 14%. The company's market share in 2017 amounted to 5.1%, which, according to the agency, is a rating support factor. Based on the data of Expert RA, on 30.09.2018 the insurer's assets amounted to RUB 102 billion, equity - RUB 23 billion and charter capital - RUB 3.7 billion.
*1 EUR = 76.2294 RUB (September 30th, 2018)