TASHKENT, Uzbekistan, March 28. Fitch Ratings has assigned to Uzbekistan's INSON JSC (insurance company) the financial strength insurer rating at "B" with a stable outlook, Trend reports.
According to Fitch Ratings, the rating reflects a moderate business profile, weak capitalization, profitability supporting the rating level, and high investment risk corresponding to this rating category.
INSON's business profile is assessed as "moderate" compared to other Uzbek insurance companies in the non-life insurance segment. The company has a medium size, an adequate customer base, and limited competitive advantages. It ranks 12th among insurance companies in Uzbekistan in terms of gross premiums in the non-life insurance segment.
The company's business structure has a significant tilt toward financial risk insurance. Financial risk insurance accounted for 40 percent of net written premiums in 2022, and half of this was for insurance of the risk of default on unsecured retail loans.
INSON showed positive profitability, which supports the rating level. Net income amounted to 5 billion soums ($396,173) in 2022, and the return on equity was 15 percent. However, burdensome administrative expenses have a negative impact on the underwriting result.
Investment risk and asset risk are assessed as high, which corresponds to this rating category. The company has equity investments in affiliated companies and bank deposits rated in the "B" category.
Meanwhile, Fitch Ratings is a global credit rating agency that assesses the creditworthiness and financial stability of a wide range of organizations, including corporations, banks, governments, and other financial institutions.
The agency assigns ratings that reflect its evaluation of the risks associated with the probability of repaying debt commitments or paying interest on them.