TASHKENT, Uzbekistan, December 12. Fitch Ratings has affirmed the Insurer Financial Strength (IFS) Rating and Long-Term Issuer Default Rating (IDR) of Uzbekistan's JSC Insurance Company SQB Insurance at ‘BB’ with a stable outlook, Trend reports.
According to Fitch, the ratings reflect SQB Insurance’s ownership by Uzbek Industrial and Construction Bank (UICB, Long-Term IDR: BB/Stable), which remains a key source of support for the insurer. Fitch notes the strong integration of SQB Insurance within the parent group and expects continued backing from UICB, including business development and capital support if needed.
At the same time, the company’s standalone credit profile remains constrained by its small operating scale, weak capital position and high exposure to investment risks. SQB Insurance held around a 2 percent market share in 2024 and 9M25, with its portfolio still largely focused on financial risk insurance. Group-related business has been declining as the company develops alternative sales channels, although its reliance on the parent remains significant.
Fitch also highlights that SQB Insurance’s profitability is supported mainly by strong investment income, primarily from local-currency bank deposits. While investment returns have helped sustain solid profitability, underwriting performance remains weak.
The agency noted improvements in the company’s reinsurance protection, with most ceded liabilities now placed with ‘A’-rated international reinsurers, compared to a predominantly regional focus in previous years. However, Fitch warned that the gradual tightening of capital requirements through 2029 could put additional pressure on the insurer’s solvency position.