Halyk – Kazakhinstrakh, subsidiary insurance company of Halyk Bank of Kazakhstan says A.M. Best Europe – Rating Services Limited affirmed company ratings: outlook Stable
March 7. KASE
JSC “Subsidiary insurance company of Halyk Bank of Kazakhstan “Halyk – Kazakhinstrakh” (Almaty), whose shares are officially listed at Kazakhstan Stock Exchange (KASE), has provided KASE with the following press-release of March 7, 2013:
International rating agency A.M. Best Europe – Rating Services Limited has affirmed the financial strength rating at B++ (Good) and user credit rating at “bbb” for JSC “Kazakhinstrakh”. The outlook on both ratings is stable.
In the agency’s opinion, these ratings reflect Kazakhinstrakh’s high capitalization, its strong competitive position on the local market and positive performance indicators.
According to forecasts of experts at A.M. Best Europe, Kazakhinstrakh’s capitalization remains at a high level thanks to an adjustment for the risk and the internal generation of capital.
Another factor positively influencing the high capitalization level is the well balanced policy of the company on re-insurance aimed at high credit quality reinsurers. In 2012 92% of liabilities reinsured elsewhere were placed with counteragents with an A rating or higher.
It is worth saying that Kazakhinstrakh is in the top three in Kazakhstan and it occupies a strong competitive position. The company maintains a well diversified business portfolio focused on retail.
Kazakhinstrakh’s operating efficiency propped up by positive technical indicators and good levels of premium collection remains high. The profit before tax in 2012 is expected to be higher than in 2011 (KZT2,700 m). That is explained by the higher revenue from Kazakhinstrakh’s investment portfolio. The level of investment in securities rated lower than the investment rating made up 34% of the total volume of portfolio in 2012 (compared to 18% in 2011).
Affirmation of high international ratings in far from easy conditions on both the local and global financial markets witnesses of an efficient strategy, skilful management of assets, as well as of the trust of clients and partners of JSC “Kazakhinstrakh”.
Kazakhinstrakh’s rating affirmed by A.M. Best Europe is already the second one in 2013. On January 29 this year the rating agency “Expert RA Kazakhstan” upgraded Kazakhinstrakh’s reliability rating to А++ (“Exceptionally high reliability rating”. Earlier the company was rated at А+
(“Very high reliability rating “).
A.M. Best Europe – Rating Services Limited is a subsidiary of A.M. Best Company. A.M. Best Company was established in 1899 and it is the oldest and most esteemed source of insurance ratings and intelligence.