Baku, Azerbaijan, April 15
By Yusif Aghayev - Trend:
S&P Global Ratings, the international rating agency, has affirmed its 'BB+' long-term insurer financial strength and issuer credit ratings to Azerbaijani Pasha Insurance OJSC with its stable outlook, Chief Risk Officer of Pasha Insurance Shahin Mammadov told Trend.
Mammadov noted that Pasha Insurance company has been cooperating with international rating agencies for a long time. Being a recognized leader in the non-life insurance market in Azerbaijan, the company strives to bring the corporate governance system in line with international standards adapted to the local insurance market, and in this process, ongoing cooperation with international rating agencies is of particular importance.
According to him, in general, the assessment of the company’s financial stability, internal corporate governance and risk management by the reputable international rating agency is a very positive sign.
"Based on international experience, we can say that rating is a very important tool for informing our customers and partners about the company's sustainability. At the same time, the assessment of our company by the international rating agency stimulates us to further improve our activities, to identify areas for development and work in this direction," Mammadov said.
The chief risk officer also said that according to the S&P Global Ratings methodology, the credit rating of a company operating in a particular country cannot be higher than the sovereign rating of that country, and in this regard, Pasha Insurance achieved the highest possible result.
“As for the analysis of the rating itself, the level of "BB +" is quite high. Analyzing this rating, the agency highly appreciated our company’s market share, capital adequacy, reinsurance coverage, development prospects, and team professionalism. This once again confirms that Pasha Insurance has sufficient financial stability and the ability to fulfill its obligations to customers and partners,” he noted.
The agency also gave a stable rating outlook. Pasha Insurance, as a company that attaches great importance to rating indicators, is constantly working to maintain and strengthen this rating.
According to Mammadov, obtaining a rating is a long and complicated process. Initially, the financial and other indicators of the company are analyzed. In parallel with this analysis, the agency analysts meet with the company management and collect detailed information about the current situation and further plans. Finally, the agency analyzes the data collected and conducts a rating assessment.
"An international rating is a sort of business card for an insurance company. Its clients and partners may not have the opportunity or time to analyze in detail the results of an insurance company when choosing an insurer. In this regard, the availability of a rating is one of the main criteria when choosing an insurance company by customers and partners,” he said.
“Experience has shown that high-rated insurance companies always justify the trust of customers, which is why foreign reinsurers pay particular attention to international ratings of a company. Although in our country the presence of an international rating isn’t given so much attention as abroad, in recent years we have been observing a changing trend in this field,” Mammadov stated.
“The main goal of Pasha Insurance company is to create a sustainable system for providing high-quality services to customers and partners. As a team, we constantly analyze foreign best practices to ensure the introduction of innovations in the activities of our company, apply the methodological approaches used by European and American insurers”.
“Our main goal is to create a strong, stable and flexible insurance company that can compete with global insurers in international markets, and every step we take in this direction helps us to strengthen our rating. We strive to improve the results achieved by improving the quality of our investment portfolio and reinsurance coverage, constantly working to improve the professionalism of our team, diversifying our existing insurance portfolio, increasing the level of satisfaction of our customers, improving internal business processes, developing new risk management mechanisms," added Mammadov.
Pasha Insurance OJSC is a recognized leader in the non-life insurance market in Azerbaijan. Its authorized capital is 50 million manat ($29.4 million). The company provides insurance services for 36 voluntary and compulsory types of insurance to 300,000 corporate and individual clients.
In 2019, Pasha Insurance collected insurance premiums in the amount of 150.1 million manat ($88.3 million) and paid insurance indemnities worth 52.7 million manat ($31 million), taking second place in the ranking of local insurers.
Presently, 22 insurance companies and one reinsurance company operate in Azerbaijan.
($1 = 1.7 manat on Apr. 15)