Baku, Azerbaijan, Oct. 14
By Fakhri Vakilov-Trend:
Fitch Ratings affirms Uzbekistan’s Kafolat Insurance Company JSC financial stability rating at a “BB-”, the rating outlook is “Stable”, Trend reports citing a rating agency.
The rating takes into account state ownership, the insurer's moderate business profile and a history of good profitability over recent years. On the other hand, high investment risks of assets are opposed to these positive factors.
The state and state-owned companies jointly own a 93 percent stake in Kafolat, while the share of Uzbekistan’s State Assets Management Agency was 66.51 percent at the end of June 2019.
A change in Fitch’s opinion on the financial situation of Uzbekistan is likely to have a direct impact on Kafolat’s rating.
A downgrade is possible in the event of a persistent lack of provisioning or losses from insurance activities, which would result in operating losses or a reduction in capital.
Any significant change in the relationship of the insurer with the state is also likely to directly affect its ratings, said Fitch.
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