Best’s News & Research Service - January 19, 2018 11:36 AM (EST)
A.M. Best Maintains Under Review With Negative Implications Status for JSC Salem Insurance Company
- January 19, 2018 11:36 AM (EST)
London //BestWire// - A.M. Best has maintained the under review with negative implications status for the Financial Strength Rating of C (Weak) and the Long-Term Issuer Credit Rating of “ccc+” of JSC Salem Insurance Company (Salem) (Kazakhstan).
The Credit Ratings (ratings) have been maintained under review with negative implications following the announcement on 15 January 2018, of an agreement to transfer a large part of Salem’s compulsory lines underwriting portfolio to another Kazakh non-life insurer, Kommesk-Omir Insurance Company JSC.
The ratings were first placed under review on 18 August 2017, following the suspension by the National Bank of Kazakhstan of Salem’s voluntary insurance licence for three months. This suspension expired in November 2017, and the licence was recovered accordingly.
The under review status has been extended due to uncertainty regarding Salem’s business strategy following the discontinuation of compulsory lines business, which was previously central to Salem’s strategy. The negative implications reflect the potential for Salem’s business profile to deteriorate as a result of this change in strategy.
The ratings will remain under review until A.M. Best has sufficient information to assess the impact of the new strategy on the company’s rating fundamentals.
This press release relates to Credit Ratings 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 see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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