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FOR IMMEDIATE RELEASE
LONDON - AUGUST 05, 2025 12:27 PM (EDT)
AM Best has affirmed the Financial Strength Rating of B- (Fair) and the Long-Term Issuer Credit Rating of “bb-” (Fair) of Life Insurance Company Kommesk-Omir JSC (Kommesk) (Kazakhstan). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Kommesk’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, very limited business profile and marginal enterprise risk management.
Kommesk’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which is at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). The assessment factors in the company’s good organic capital generation, with earnings expected to remain fully retained in the next few years, and its limited reliance on reinsurance. A partially offsetting rating factor is the relatively low credit quality of Kommesk’s investment portfolio, reflecting its concentration in its domestic market, which exposes the company to the high levels of economic, political and financial system risks associated with Kazakhstan. In addition, the company maintains a sizeable asset-liability duration mismatch given the long profile of its liabilities.
The adequate operating performance assessment considers Kommesk’s business plan to continue developing its profile as a life insurer. AM Best expects the company to grow its earnings and maintain positive technical profitability over the cycle, notwithstanding the execution risk associated with its planned scale up. In 2024, under IFRS 17, Kommesk reported a profit before tax of KZT 1.8 billion (2023: KZT 0.4 billion), supported by a strong growth in business volumes driven by legislative developments in the pension annuity market, and solid investment income.
Kommesk restructured its operations in recent years to become a specialist life insurer. The company operates solely in the competitive Kazakhstan market, underwriting pension annuities, workers’ compensation insurance and traditional life products. The business profile assessment reflects Kommesk’s portfolio, which, albeit projected to grow, is expected to remain relatively small by domestic and international standards. The company reported gross written premium (GWP) of KZT 20.6 billion (USD: 39.0 million) in 2024, equivalent to a market share of approximately 2%. The execution and market acceptance risks associated with Kommesk’s plan to scale up in the life segment materially are partially mitigated by the presence of an experienced and stable management team.
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.