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FOR IMMEDIATE RELEASE
LONDON - MARCH 04, 2022 03:35 PM (EST)
AM Best has downgraded the Financial Strength Rating to B (Fair) from B++ (Good) and the Long-Term Issuer Credit Rating to “bb+” (Fair) from “bbb” (Good) of Ingosstrakh Insurance Company PJSC (Ingosstrakh) (Russia). Concurrently, AM Best has maintained the under review with negative implications status for these Credit Ratings (ratings).
The ratings reflect Ingosstrakh’s balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, neutral business profile and marginal enterprise risk management (ERM).
The rating downgrades reflect deterioration in the company’s balance sheet strength due to heightened geopolitical, economic and financial system risk in Russia, which is negatively affecting the valuation, liquidity and credit quality of Ingosstrakh’s investment portfolio and has potential consequences for the company’s access to international reinsurance capacity. In addition, the ERM assessment has been revised to marginal due to the substantially higher risk associated with operating in Russia.
The ratings remain under review with negative implications as AM Best is closely monitoring the severity of the impact of sanctions, and the broader international response to the conflict in Ukraine, on Russia’s economy and financial system, and the subsequent consequences for the credit profile Ingosstrakh.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.