Expert RA

Expert RA Confirms Reliability A+ Rating of Rossia Insurer

September 23, 2008

The Expert RA rating agency has confirmed its reliability A+ rating of the ROSSIA insurance society (a very high level of reliability).

The factors, that allowed to evaluate the company’s reliability at this level include, among others, its high business reputation and the insurer’s well developed brand. The Agency’s analysts note the insurance company’s positive experience in the settlement of big losses. ОSАО ROSSIA’s insurance portfolio is highly diversified and stable. “The company’s financial situation is characterized by low parameters of unprofitableness from insurance activity and operational costs” says Alexey Tersky, RA expert, Department of financial institutions ratings. The Expert RA agency also gives a positive assessment of the insurer’s high liquidity, its well-balanced and stable investment portfolio.

Factors that somewhat limit ОSАО ROSSIA’s reliability level, include its rather high ratios of accounts payable to its assets and low parameters of profitability of the company’s activity.

ОSАО ROSSIA plans to strengthen its positions in the market and to continue the development of its brand. The ROSSIA insurance company is a federal level insurer. Today, the company provides mostly services in ground transport, corporate property and voluntary medical insurance. In 2007, ОSАО ROSSIA collected 9.46 bln Rbl in insurance premiums, taking the 11th place among Russian insurers (according to FISS). According to Expert RA, the company’s asset aggregate, as of January 1, 2008, was 11.71 bln Rbl, its authorized capital - 1 bln Rbl.

Expert RA

Expert RA Awards A++ Rating to Group of URALSIB Management Companies

September 23, 2008

The Expert RA rating agency has awarded the top reliability and service quality A++ rating to the Group of URALSIB management companies (Exceptionally high/highest level of reliability and service quality).

The Group of URALSIB management companies is represented by three management companies: URALSIB – Capital Management, UK URALSIB Management Company and URALSIB Asset Management. URALSIB Capital Management and UK URALSIB management company have been operating in the trust management market since 1996. URALSIB Asset Management has been in the market since 2001.

The priority directions in the activity of the Group’s management companies are the management of mutual investment funds and individual trust management funds.

The top assessment of the Group of the URALSIB management companies’ reliability and service quality is confirmed by its effectively built process of risk control as well as its multistage system of investment process. The Agency’s analysts highly assessed the complex of integrated certified Diasoft 5NT-based software solutions the Group uses.

The experts point out as factors that limit the rating assessments the Group’s rather poor management of some major mutual funds in the period under review, and reduced assets under UK URALSIB’s management. “Given the volatility of the equity market, large companies unlike small market operators find it more difficult to show stable high results of management quality. The size of the Group’s companies does not allow them to quickly respond to all changes that occur on the equity market. At the same time, the Group’s qualitative organization of investment process and its effective risk management system give cause to believe that results of fund management will improve” says Pavel Mitrofanov, head of Expert RA’s investment ratings sector.

According to the Expert RA quarterly monitoring of the trust asset management market, the Group of URALSIB management companies was 5th in the total amount of managed assets in the first six months of 2008. The group was also 5th in the net asset value of its mutual funds, 14th in the private pension funds reserves managed, 22nd in the accumulation of private pension funds in management, 3rd in the accumulation of the Pension Fund of Russia, 6th in the management of insurance companies’ reserves, 3rd in the direction of “individual trust management and other types of trust management”. The Group is 7th in managing “military mortgage” funds. According to the Expert RА technique, the Group of URALSIB management companies belongs to the first size category among management companies.

Based on the results of the rating conclusion, the Expert RA rating agency has awarded the following reliability and service quality ratings:
A ++ rating to the Group of URALSIB management companies (level “exceptionally high/highest level of reliability and service quality”).
A ++ rating to UK URALSIB management company (level “exceptionally high/highest level of reliability and service quality”).
A ++ rating to URALSIB Capital Management (level “exceptionally high/highest level of reliability and service quality”).
A ++ rating to URALSIB Asset Management (level “exceptionally high/highest level of reliability and service quality”).