Insurance company «Universalna» reports its 1H 2007 results.2007-08-06
During the 1H 2007 Universalna raised non-life GWP to UAH 109 427,7 thous. (posting 49% growth compared to UAH 73 686,9 thous. in 1H 2006).
The Company’s total claims paid to the clients were UAH 34 297,1 thous. (42,0% up from UAH 24 152,2 thous. in 1H06).
The Company has reported UAH 687,1 thous. in Net income.
Casco insurance remained the main driver of the GWP growth (111,5% growth y-o-y). Its share in the total portfolio structure increased to – 36,0% (compared to 25,2% in 1H06). The total GWP raised from Casco insurance amounted to UAH 39 369,4 thous. The Company seeks to continue increasing the Casco share in the total portfolio structure, since today it has been one of the most popular insurance products on the retail market.
The second largest payments generating insurance segment was Property. As a result of a recently commenced car lending and mortgage sale programmes in 2Q the Company has been witnessing substantial growth in Property segment of 47,2% (representing UAH 22 588,2 thous. in premiums written compared to UAH 15 344,0 thous. in 1H06).
The GWP growth was also supported by payments increase of 18% and 12% in Green card and Personal insurance respectively.
Branch network development
In order to achieve higher efficiency and greater economies of scale the shareholders of the Company have
decided to improve Company’s distribution structure by termination of 8 existing divisions (resolution of the
AGM held on the 25th May 2007). Terminated branches will be turned into small mobile front-offices focusing on
selling insurance products only.
In 2Q 2007 the Company started running a new distribution project named «Avtosalon». A new client tailormade project is aimed at roviding a qualified financial service regarding best possible car lending programme from both banking and insurance perspective to the auto dealer’s client through the chain of well-educated Universalna’s financial advisors. It will also positively impact centralization and automation process of premiums generating through the auto dealers distribution channel.
Insurance Reserves as of 01/07/07 totaled to UAH 70 260,3 thous. (up 21,3 % compared to UAH 57 903,8 at the end of 2006).
The Total Assets as of 01/07/2007 was UAH 251 990,5 thous. (up 32,6% compared to UAH 189 978,6 thous. at the end of 2006).
Considering the positive tendency and dynamics that the Company has demonstrated during the first and second quarter of 2007 the National Rating Agency «Credit-Rating» has upgraded Universalna’s bonds credit rating from uaBBB to uaA- reflecting strong capacity of the Company to pay the issue given.