Moves on the Kazakh insurance market under the scrutiny of A.M.Best

A.M. Best will evaluate the impact that the merger transaction between the Kazakh Halyk-Kazakhinstrakh, Insurance Subsidiary Company of Halyk Bank of Kazakhstan, JSC (Kazakhinstrakh) and JSC IC Kazkommerts-Policy, on August 29, 2018, had on Kazakhinstrakh's Credit Rating.

A.M. Best expects to complete its evaluation within the fourth quarter of 2018.

On February 6, 2018, A.M. Best placed Kazakhinstrakh's Financial Strength Rating of B++ (Good) and Long-Term Issuer Credit Rating of "bbb" under review with negative implications following the company's announcement of its shareholder agreement to merge Kazkommerts-Policy into Kazakhinstrakh. The merger decision followed the 2017 acquisition of JSC Kazkommertsbank, Kazkommerts-Policy's former parent, by JSC Halyk Bank, Kazakhinstrakh's parent.

Concurrently, A.M. Best has withdrawn the Financial Strength Rating of C++ (Marginal) and the Long-Term Issuer Credit Rating of "b+" of JSC IC Kazkommerts-Policy (Kazkommerts-Policy) (Kazakhstan) as the company has requested to no longer participate in A.M. Best's interactive rating process. Kazkommerts-Policy is owned by JSC Halyk Bank (Halyk Bank), a leading retail bank in Kazakhstan. On August 29, 2018, Kazkommerts-Policy's assets and liabilities were transferred to its sister insurance company, Halyk-Kazakhinstrakh, Insurance Subsidiary Company of Halyk Bank of Kazakhstan, JSC (Kazakhstan).

A.M. Best's procedure for final rating requires that the score be produced in conjunction with a rating withdrawal. However, because Kazkommerts-Policy's balance sheet does not contain any insurance-related assets or liabilities, A.M. Best was unable to produce a final rating opinion.


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