Baku, Azerbaijan, Nov. 14
By Rashid Shirinov – Trend:
The average net combined ratio of Kazakh Eurasia insurance company in 2014-2018 was 96.5 percent and the average return on equity was 24.7 percent, S&P Global Ratings said in a message.
The rating agency noted that the company exercises controlled growth in its local market, while exceeding market average growth rates over the past five years.
“In the first nine months of 2018, the company's gross premiums written increased by 33.7 percent year-on-year while in contrast the local market contracted by 8.3 percent,” reads the message.
Thus, S&P Global Ratings has raised its long-term issuer credit and financial strength ratings on Eurasia insurance company to 'BBB-' from 'BB+'. The outlook is stable. The rating agency also raised the Kazakhstan national scale rating to 'kzAAA' from 'kzAA+'.
“The upgrade reflects our view that Eurasia's competitive position has strengthened over the past two years,” S&P Global Ratings noted.
The rating agency anticipates that Eurasia will continue demonstrating sound underwriting performance, with a net combined ratio of around 90 percent on average in 2018-2020. S&P Global Ratings also expects the company’s net income to be around 33 billion tenge in 2018 and 17 billion tenge in 2019 and 2020 each.
As of Oct. 1 2018, Eurasia's market share in Kazakhstan was 28.8 percent. The company’s major business lines include property, obligatory and voluntary motor, medical, and accident insurance.
Official exchange rate on Nov. 14 is 374.2 KZT / USD.
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