Moody's downgrades rating of Azerbaijani insurance company
Azerbaijan, Baku, Nov. 8 / Trend N.Ismayilova /
Moody's Investors Service has announced that it has downgraded its local currency and foreign currency insurer financial strength ratings on the Azerbaijani Standard Insurance to B3 from B2 and will withdraw the rating.
The downgrade reflects the deterioration in the investments of the insurer during 2009 as it shifted its investment portfolio from government bonds into deposits in related bank "Bank Standard". The downgrade also reflects the deteriorating business position as evidenced by the lower market share in 2009 and 2010 and declining profitability in 2009, Moody's reported.
The last rating action was on 5th August 2009 when the ratings of Standard Insurance were downgraded to B2 from B1
JSC Standard Insurance was founded in February 2002 with the registered capital of 600,000 manat. At present, the company's authorized capital amounts to 11 million manat. Standard Insurance provides five types of compulsory and 24 types of voluntary insurance services.
The company, which is a member of the AB Standard Group, has two regional offices and an extensive agent network in Baku and regions, as well as the subsidiary insurance company in Georgia.
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