OREANDA-NEWS. March 4, 2010. Over the last five years, Oranta’s gross premiums have increased 1.28-fold; payouts, 2.8-fold; insurance reserves, 2.13-fold; and owned capital, 3.75-fold. In 2009, the benefits that the company paid totaled UAH 343 million.

In the year of 2009, which was very hard for Ukraine’s economy, Oranta once again proved to be the leader of classic insurance market. In a difficult period, the company managed to remain first in the volume of business in Ukraine's classic insurance segment. This leadership was repeatedly acknowledged by state regulators, professional associations, independent research centers and rating agencies. The company’s management was ready to reduce the volume of gross premiums in 2009 compared to 2008. The year of 2009 was the first year of a serious economic decline for the nation after almost 50 years of continuous growth.

"In 2009, the situation was difficult for the entire country and for all sectors of economy. Business declined, while prices grew up. Inflation and devaluation had a significant impact on the unprofitability of business. In January-December 2009, in comparison with the same period last year, inflation amounted to 15.9%. Since the beginning of the crisis, Ukrainian currency devaluated by 58%, and GDP decreased by 15 % last year. The population's purchasing capacity plummeted; banks stopped giving out loans; some industries, such as automotive industry, shut down,” says Mr. Oleg Spilka, Chairperson of Oranta’s Supervisory Board. “Of course, this large-scale crisis couldn't but impact the insurance market in general and Oranta in particular. However, the market and we have withstood and demonstrated our strength, firmness, congruence, and most importantly our readiness and ability to fulfill our obligations in full,” adds Mr. Spilka.

Based on the results of 2009, the company’s loss amounted to UAH 236,972 million, but this negative financial result was forecasted by Oranta’s management. In order to support its financial standing and market positions, the company conducted a share issue to the amount of UAH 600 million. The volume of the share issue was unprecedented for Ukraine’s insurance market and demonstrated the level of support of Oranta's shareholders. All in all, Oranta’s charter capital has increased 16-fold over the last five years. The company’s management plans to invest the major part of the funds raised through the share issue in the development of the company’s branch network, customer service, IT-infrastructure, and reengineering of business processes.

 “The main thing is that we managed not only to keep the situation under control and pay UAH 345.4 million in benefits but also to attract funds for the development of our business, which will by all means serve as a basis for new growth in a post-crisis period. We continue to maintain a considerable market share (from 11.2% to 12.3%) in Ukraine's classic insurance market. Out resources as well as the support and understanding of our shareholders will allow us to increase our market share in the next 3 years. I am sure that 2009, the 88th year of the company’s operation, will be remembered as the year that opened new horizons for us," stated Mr. Spilka.