Rating agency Expert RA Kazakhstan assigns A level reliability rating to Insurance company Alliance Policy (Kazakhstan)
March 18. KASE
Rating agency “Expert RA Kazakhstan” has affirmed a reliability rating to JSC “IC “Alliance Policy” at level А (high level of reliability).
The positive impact on the rating level is made by high values of the current liquidity and adjusted insurance net liquidity (as of January 1, 2013 – 3.86 and 2.05, accordingly). The company is characterized by a considerable diversification of the investment portfolio in terms of investments, high profitability of the capital investment (based on Y2012 results ROI=10.9%), fairly high reliability of re-insurance, as well as a substantial geographical diversification (based on Y2012 results Herfindal-Hirschman Index – 0.31).
“JSC “IC “Alliance Policy” demonstrates high figures of capital adequacy and solvency margin (2.57 as of January 1, 2013). As a result the company can accept additional risks under the strategic development which is supposed to be fuelled by corporate insurance, voluntary insurance as well as stepping up of presence in the country’s regional markets”, – says general director of “Expert RA Kazakhstan” Adil Mamazhanov.
Amongst factors restricting the rating level are the negative profitability indicators (based on the results of 2012 ROA= – 4.1%, ROE= – 5.8%), high losses, and absence of experience in big payouts under a high level of gross maximum possible payout. Besides, a low diversification of the insurance portfolio (share of the main insurance type, vehicle owners’ civil-legal responsibility, made up 37.4%) and low figures of operations (based on the results of 2012 the share of insurance premiums collected made up 1.05% of the market) also restrict the rating level.
“JSC “IC “Alliance Policy” is a universal insurer. Based on the results of 2012 according to FSC NBK, the company occupied the 26th rank in terms of the total insurance premium collected among Kazakhstan’s insurance companies, the 13th place on mandatory insurance of civil responsibility of vehicle owners, 8th place on voluntary insurance in case of illness, 4th place on mandatory insurance of civil responsibility of the freighter towards passengers.
As of January 1, 2013 the company’s assets were worth KZT9.97 bn, equity – KZT6.97 bn, authorized capital – KZT2.90 bn, insurance premiums in 2012 – KZT2.49 bn.