Fitch Affirms Belgosstrakh at 'B'; Outlook Negative
<p> MINSK, Apr 19 - PrimePress. Fitch Ratings has affirmed the Insurer Financial Strength (IFS) Rating of Belarus’ Republican Unitary Insurance Company's (Belgosstrakh) at 'B'. The Outlook is Negative. </p> <p> </p> <p> The rating and Outlook continue to reflect the insurer's 100% state ownership (Belarus; Local-Currency Long-Term Issuer Default Rating (IDR): B/Negative). In addition, the rating reflects the insurer's leading market positions in its key business segments, sustainable profit generation and the weak quality of its investment portfolio. Belgosstrakh's rating also reflects the state guarantee for insurance liabilities under compulsory lines. </p> <p> </p> <p> The pandemic has had a limited impact on Belgosstrakh's premium volumes, as Belarus has not implemented a rigid lockdown regime like most other countries. Based on 2020 statutory accounts, Belgosstrakh reported a strengthening of its profit to Br55 million ($21.182m) in 2020 from Br10 million ($3.851m) in 2019, mainly due to FX gains on investments and despite a notable weakening of its underwriting result amid FX-driven inflation of claims. </p> <p> </p> <p> Fitch continues to rank Belgosstrakh’s overall business profile as 'Favourable' compared with other Belarus insurers. This reflects the company's dominant market position in the non-life sector, strong brand and distribution capabilities, as well as a regulation-based monopoly as the sole provider of a number of compulsory lines, namely state-guaranteed employers' liability, homeowner property, and agricultural insurance. </p> <p> </p> <p> Fitch views the credit quality of Belgosstrakh's investment portfolio as weak, reflecting the predominance of instruments mainly invested in state bonds and in deposits of state-owned banks, which are constrained to the 'B' category, and the presence of significant concentrations by issuer. Belgosstrakh's ability to achieve better diversification is limited by the narrowness of the local investment market and strict regulation of the insurer's investment policy. </p> <p> </p> <p> Belgosstrakh is Belarus’ largest insurance company with 8 regional branches and 118 representative offices. Belgosstrakh provides more than 100 insurance options in 80 types of voluntary and compulsory insurance. </p> <p> </p> <p> Fitch Ratings Inc. is an American credit rating agency and is one of the "Big Three credit rating agencies", the other two being Moody’s and Standard & Poor’s. The agency provides the global credit markets with independent and forward-looking credit assessments, research and data. End </p>
2021-04-20
Primepress
Fitch Affirms Belgosstrakh at 'B'; Outlook Negative
MINSK, Apr 19 - PrimePress. Fitch Ratings has affirmed the Insurer Financial Strength (IFS) Rating of Belarus’ Republican Unitary Insurance Company's (Belgosstrakh) at 'B'. The Outlook is Negative.
The rating and Outlook continue to reflect the insurer's 100% state ownership (Belarus; Local-Currency Long-Term Issuer Default Rating (IDR): B/Negative). In addition, the rating reflects the insurer's leading market positions in its key business segments, sustainable profit generation and the weak quality of its investment portfolio. Belgosstrakh's rating also reflects the state guarantee for insurance liabilities under compulsory lines.
The pandemic has had a limited impact on Belgosstrakh's premium volumes, as Belarus has not implemented a rigid lockdown regime like most other countries. Based on 2020 statutory accounts, Belgosstrakh reported a strengthening of its profit to Br55 million ($21.182m) in 2020 from Br10 million ($3.851m) in 2019, mainly due to FX gains on investments and despite a notable weakening of its underwriting result amid FX-driven inflation of claims.
Fitch continues to rank Belgosstrakh’s overall business profile as 'Favourable' compared with other Belarus insurers. This reflects the company's dominant market position in the non-life sector, strong brand and distribution capabilities, as well as a regulation-based monopoly as the sole provider of a number of compulsory lines, namely state-guaranteed employers' liability, homeowner property, and agricultural insurance.
Fitch views the credit quality of Belgosstrakh's investment portfolio as weak, reflecting the predominance of instruments mainly invested in state bonds and in deposits of state-owned banks, which are constrained to the 'B' category, and the presence of significant concentrations by issuer. Belgosstrakh's ability to achieve better diversification is limited by the narrowness of the local investment market and strict regulation of the insurer's investment policy.
Belgosstrakh is Belarus’ largest insurance company with 8 regional branches and 118 representative offices. Belgosstrakh provides more than 100 insurance options in 80 types of voluntary and compulsory insurance.
Fitch Ratings Inc. is an American credit rating agency and is one of the "Big Three credit rating agencies", the other two being Moody’s and Standard & Poor’s. The agency provides the global credit markets with independent and forward-looking credit assessments, research and data. End