BAKU, Azerbaijan, Dec. 1
By Klavdiya Romakayeva - Trend:
Fitch Ratings assesses the overall business profile of Kafolat Insurance Company JSC as “favorable” compared to all other insurance companies in Uzbekistan, Trend reports referring to the press service of Fitch Ratings Agency.
The international rating agency Fitch Ratings has affirmed the financial strength rating of Kafolat at “BB-” with a “stable” rating outlook.
The Agency's report states that Kafolat is majority-owned by the state, has a favorable business profile, the relative stability of the company's financial indicators to the negative consequences of the coronavirus pandemic, and good capitalization.
Fitch views Kafolat's overall business profile as “favorable” relative to all other insurance companies in Uzbekistan, reflecting the company's strong competitive position and diversification across all types of insurance, including a significant life insurance subsidiary.
Kafolat is the fourth largest universal insurer in Uzbekistan, with a market share in terms of total premiums signed (GWP - Gross Written Premium) of nine percent in 2019 and seven percent in 2018.
According to unconsolidated regulatory reporting for 9M2020 Kafolat showed solid financial performance amid coronavirus lockdowns. The share of property and liability insurance increased to 52 percent of the total volume of premiums signed in 9M2020 compared to 37 percent in the same period last year.
In addition, the rating at “BB-” with a “Stable” outlook indicates stability, high solvency, improved corporate governance system, expanded range, and improved quality of insurance services provided by the company.
Confirmation of the international rating of Kafolat Insurance Company JSC will increase the company's capabilities in attracting foreign investments, expanding the scope of cooperation with international financial institutions.
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