Fitch downgrades outlook for Belarus Re, Beleximgarant, Belgosstrakh

<p> MINSK, Nov 20 - PrimePress. Fitch Ratings says it has revised from Stable to Negative its outlooks for Belarusian Republican Unitary Insurance Company's (Belgosstrakh), Export-Import Insurance Company of the Republic of Belarus's (Eximgarant), and  Belarusian National Reinsurance Organisation's (Belarus Re) , and affirmed their Insurer Financial Strength (IFS) Ratings at 'B'. </p> <p>   </p> <p> The revision of the Outlook follows a similar action on Belarus's sovereign Long-Term Local Currency Issuer Default Rating (IDR) on 13 November 2020. </p> <p>   </p> <p> The rating continues to reflect the aforementioned insurers’ 100% state ownership and capital support from the state when needed. In addition, the rating reflects the leading market positions of the insurers in their key business segments, their sustainable profit generation and the fairly low quality of their investment portfolio. </p> <p>   </p> <p> Besides, the ratings also benefit from state guarantees for insurance liabilities under compulsory and export credit insurance. </p> <p>   </p> <p> RATING SENSITIVITIES </p> <p>   </p> <p> Factors that could, individually or collectively, lead to negative rating action/downgrade: </p> <p>   </p> <p> -A material adverse change in Fitch's rating assumptions with respect to the coronavirus impact. </p> <p>   </p> <p> - A downgrade of Belarus's Local-Currency Long-Term IDR would lead to an equivalent change in the insurers’ IFS Rating. </p> <p>   </p> <p> Factors that could, individually or collectively, lead to positive rating action/upgrade: </p> <p>   </p> <p> -A positive rating action is prefaced by Fitch's ability to reliably forecast the impact of the coronavirus pandemic on the financial profiles of both the Belarusian insurance sector and the insurers. </p> <p>   </p> <p> - A revision of the Outlook for Belarus's Local-Currency Long-Term IDR to Stable would lead to an equivalent change in the insurer's IFS Rating Outlook. </p> <p>   </p> <p> Beleximgarant (Belarus Eximgarant) is a state-owned company that has been operating since 2001, providing insurance coverage for export contracts of Belarusian companies and insurance coverage of export loans. The company is a member of the International Union of Credit and Investment Insurers. </p> <p>   </p> <p> Established in November 2006, Belarusian National Reinsurance Organization (Belarus Re) is the country’s first reinsurance company and the only agency to reinsure risks insured on the territory of Belarus with foreign insurance and reinsurance organizations. Belarus Re’s statutory capital stands at Br152.382m ($73.922m). </p> <p>   </p> <p> Belgosstrakh is Belarus’ largest insurance company with 8 regional branches and 118 representative offices. End </p>

2020-11-21

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