Fitch Ratings affirms Azerbaijan-based AzInsurance OJSC’s rating

Finance Materials 23 November 2019 12:41 (UTC +04:00)
Fitch Ratings affirms Azerbaijan-based AzInsurance OJSC’s rating

BAKU, Azerbaijan, Nov. 23

By Eldar Janashvili - Trend:

Fitch Ratings has affirmed Azerbaijan-based AzInsurance OJSC’s Insurer Financial Strength (IFS) Rating at 'B', the Outlook is Stable, Trend reports with reference to the Fitch Ratings report.

Fitch considers the average credit quality of the investment portfolio to be weak due to a substantial exposure to deposits placed with banks that are either rated in the 'B' category or unrated, according to the report.

AzInsurance’s risk-adjusted capital position, as measured by Fitch’s Prism Factor-based Model (FBM), slightly strengthened and remained 'Adequate' at end-2018, in line with 2017 results.

This was mainly driven by a reduction in required capital, which was positively impacted by declining business volumes. AzInsurance's solvency margin stood at a comfortable 362 percent as of October 1, 2019 (347 percent in the same period last year).

Strengthening of the business profile, reflected in improved business diversification and profitable growth, could lead to a rating upgrade provided AzInsurance continues to adhere to prudent reserving and underwriting practices.