Best’s News & Research Service - January 12, 2015 09:21 AM (EST)
A.M. Best Affirms and Withdraws Ratings of Nomad Life Insurance Company JSC
- January 12, 2015 09:21 AM (EST)
London //BestWire// - A.M. Best has affirmed the financial strength rating of C++ (Marginal) and the issuer credit rating of "b+" of Nomad Life Insurance Company JSC (Nomad Life). The outlook for both ratings is stable.
Concurrently, A.M. Best has withdrawn the ratings as the company has requested to no longer participate in A.M. Best's interactive rating process.
Nomad Life is a wholly-owned subsidiary of Nomad Insurance Group Limited, a private non-operating holding company. Both entities are domiciled in Kazakhstan.
The ratings of Nomad Life were downgraded in December 2014, due to A.M. Best's expectation of a significant decline in the company's risk-adjusted capitalisation to a weak level in 2014, owing to a material increase in reserve provisions associated with the compulsory workers' compensation account. This concern was compounded by Nomad Life's rapid growth in this line of business since 2012, given the significant uncertainty surrounding the industry with regard to the adequacy of reserve provisions for the class. The final rating action on Nomad Life continues to reflect these uncertainties, given the company's dominant market profile in this business segment.
The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Key insurance criteria reports utilised:
- Catastrophe Analysis in A.M. Best Ratings
- Evaluating Country Risk
- Rating Members of Insurance Groups
- Rating New Company Formations
- Risk Management and the Rating Process for Insurance Companies
- Understanding Universal BCAR
In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures:A.M. Best Europe - Rating Services Limited Supplementary Disclosure.
This press release relates to rating(s) that have been published on A.M. 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 visit A.M. Best's Ratings & Criteria Center .
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