A.M. Best Revises Outlook to Negative for Three Rated Russian (Re)Insurers and Maintains Negative Outlook For One Russian Reinsurer
The revision of the rating outlooks to negative from stable reflects A.M. Best’s belief that a protracted recession in
Furthermore, with inflationary pressures set to rise, significant uncertainty surrounds the adequacy of the reserves provisions established by these entities. This risk is further exacerbated by the soft conditions of Russia’s insurance market with mispricing and weak underwriting discipline being a common theme across most lines of business.
Although the outlook for the Russian insurance market is negative, the below
Positive rating movement is unlikely. The ratings of
Companies affected by the rating action:
OJSC INSURANCE COMPANY OF GAZ INDUSTRY SOGAZ - the financial strength rating (FSR) of B++ (Good) and the issuer credit rating (ICR) of “bbb” were affirmed. The outlook on both ratings was revised to negative from stable;
Russian Reinsurance Company JSC - the FSR of B+ (Good) and the ICR of “bbb-” were affirmed. The outlook for both ratings remains negative.
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.
Key insurance criteria reports utilised:
- Catastrophe Analysis in A.M. Best Ratings
- Evaluating Country Risk
- Evaluating Non-Insurance Ultimate Parents
- Rating Members of Insurance Groups
- Risk Management and the Rating Process for Insurance Companies
- Understanding Universal BCAR
In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M. Best
This press release relates to rating(s) that have been published on
Copyright © 2015 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.
Financial Analyst
[email protected]
(OJSC INSURANCE COMPANY OF
GAZ INDUSTRY SOGAZ,
Unity Reinsurance Company, Ltd.,
or
Financial Analyst
[email protected]
(Russian Reinsurance Company JSC)
or
Associate Director, Analytics
[email protected]
or
Manager, Public Relations
[email protected]
or
Assistant Vice President, Public Relations
[email protected]
Source:
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