ASTANA, Kazakhstan, October 26. S&P Global Ratings has confirmed the long-term financial strength rating of the insurance company and the issuer credit rating of the Kazakh Life Insurance Company Nomad Life JSC (Nomad Life) at the level of BB+, Trend reports.
The forecast for changes in ratings is "stable." S&P also confirmed the company’s rating on the Kazakhstan national scale at the “kzAA” level.
The affirmation of the ratings reflects S&P's view that Nomad Life has taken effective steps to gradually restore and maintain its capitalization level (as measured by the rating agency's capital model).
The capital reduction was driven by larger-than-expected dividend payments in 2022, financial market volatility, and earnings fluctuations.
Moreover, S&P expects the company's earnings performance to improve over the next 12 to 18 months, supporting its growth momentum and strengthening its capital base.
As S&P noted, the insurance company's capital adequacy forecast is based on the assumption that dividends will amount to about 60 percent of net income in 2023–2024. S&P expects Nomad Life's capital adequacy to gradually improve to 'A' levels, supported by the expected stabilization of profitability in 2023-2024.