Free Submission Public Relations & NewsPR-inside.com
Home
Deutsch English

Business

A.M. Best Affirms Ratings of Kazakhinstrakh


Print article Print article
© Business Wire 2014
2014-03-13 17:36:04 -

A.M. Best has affirmed the financial strength rating of B++ (Good) and issuer credit rating of “bbb” of Halyk-Kazakhinstrakh, Insurance Subsidiary Company of Halyk Bank of Kazakhstan, JSC (Kazakhinstrakh) (Kazakhstan). The outlook for both ratings remains stable.

The ratings of Kazakhinstrakh continue to reflect its excellent risk-adjusted capitalisation, consistently positive operating performance and good competitive position in the Kazakh insurance market.

Kazakhinstrakh’s risk-adjusted capitalisation is expected to remain strong, supported by good internal capital generation, as demonstrated by a five-year average return on capital and surplus of 15%.

Based on national accounting standards, Kazakhinstrakh reported a pre-tax profit of KZT 3.6 billion in 2013 (2012: KZT 3.2 billion), underpinned by an excellent combined ratio of 85% and solid investment earnings from its portfolio

of predominantly fixed income securities.

As the market’s third-largest insurer, Kazakhinstrakh maintains a good competitive position, supported by its access to a wide distribution channel throughout Kazakhstan. Additionally, the company’s affiliation with its owner, Halyk Savings Bank of Kazakhstan JSC, allows Kazakhinstrakh to take advantage of its well-spread branch network and to capitalise on cross-selling opportunities. In 2013, Kazakhinstrakh’s gross written premiums rose by 38% to KZT 24 billion, due to the renewal of a large offshore oil fronting contract.

A negative rating factor is the company’s high investment risk profile.

Kazakhinstrakh continues to be exposed to sub-investment grade securities, with these investments accounting for 76% of its fixed income portfolio.

Upwards rating action could occur if Kazakhinstrakh demonstrates the successful implementation of its business strategies through growth in its earnings profile, whilst maintaining risk-adjusted capitalisation at a strong level. Additionally, the company would need to evolve its risk management capabilities to support its expanding risk profile. These fundamentals would be assessed over a longer-term period.

Negative rating actions could occur if a decline in Kazakhinstrakh’s financial profile, particularly due to deterioration in its performance or quality of investments, were to result in the erosion of risk-adjusted capitalisation to a level below A.M. Best’s expectations.
A decline in country risk fundamentals of Kazakhstan could also put negative pressure on the company’s ratings.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M.

Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology : cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww .. .


In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M.

Best Europe - Rating Services Limited Supplementary Disclosure : cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww .. .


This rating announcement has been issued by A.M. Best Europe – Rating Services Limited, which is a subsidiary of A.M. Best Company.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com : cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww .. .

Copyright © 2014 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

" title="http://cts.businesswire.com/ct/CT?id=bwnews&sty=20140313006050r1&sid=16929&distro=ftp\"/>" target="_blank" rel="nofollow">cts.businesswire.com/ct/CT?id=bwnews&sty=20140313006050r1&am ..

A.M. BestValeria ErmakovaAssociate

Financial Analyst+(44) 20 7397 0269 valeria.ermakova@ambest.com : mailto:valeria.ermakova@ambest.com orDeniese

ImoukhuedeAssociate Director, Analytics+(44)

20 7397 0277 deniese.imoukhuede@ambest.com : mailto:deniese.imoukhuede@ambest.com orRachelle

MorrowSenior Manager, Public Relations+(1) 908

439 2200, ext. 5378 rachelle.morrow@ambest.com : mailto:rachelle.morrow@ambest.com orJim

PeavyAssistant Vice President, Public Relations+(1)

908 439 2200, ext. 5644 james.peavy@ambest.com : mailto:james.peavy@ambest.com


Author:
Hossam Abdel-Kader
e-mail
Web: www.pr-inside.com/
Phone: +43 1 9582319

Disclaimer: (c) 2014 Business Wire. All of the news releases contained herein are protected by copyright and other applicable laws, treaties and conventions. Information contained in the releases is furnished by Business Wire's members, who warrant that they are solely responsible for the content, accuracy and originality of the information contained therein. All reproduction, other than for an individual user's personal reference, is prohibited without prior written permission.
Latest News
Read the Latest News
www.newsenvoy.com

 


Terms & Conditions | Privacy | About us | Contact PR-inside.com