BAKU, Azerbaijan, May 12. Fitch Ratings has upgraded Kazakhstan's Kazakhmys Insurance Company's (Kazakhmys Ins) insurer financial strength (IFS) rating to 'BB' from 'BB-' and its national IFS rating to 'A(kaz)' from 'BBB+(kaz)' with stable outlooks, Trend reports via the rating agency.
According to the agency, the upgrade follows the reduction of the insurer's dependence on reinsurance. The company's reinsurance utilization ratio, as measured by the ratio of gross to net earned premiums, improved to 68 percent in 2022 from 76 percent in 2021. As a result, the insurer was able to retain more profitable business.
The ratings continue to reflect Kazakhmys Ins's favorable business profile, adequate capitalization, good financial performance, and high, albeit reducing, dependence on outwards reinsurance in commercial lines.
Kazakhmys Ins is one of the leading non-life insurers in Kazakhstan, as underlined by its top three market position in the non-life insurance segment in 2022 with a market share of 9 percent of total gross written premium.
In 2022, Kazakhmys Ins reported a net profit of 5.5 billion Kazakh tenge ($12.3 million).