"The ratings reflect INGOSSTRAKH's balance sheet strength, which AM Best categorizes as strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management", said AM Best.
Although, INGOSSTRAKH has been trying to improve credit quality of the investment portfolio over the last two years, the group's asset base remains exposed to high financial system risk in Russia. At the same time, during five years since 2015 the insurer has been demonstrating strong operating results with an average return on equity of 16.6% and a combined ratio of 89.8%, explained AM Best.
AM Best expects operating performance of INGOSSTRAKH to remain strong in the intermediate term, supported by good investment returns and the group's efforts to improve MTPL performance, but "there is a potential for the motor loss ratio to be affected negatively by the recent depreciation of the Russian rouble, which has increased the cost of motor spare parts", said AM Best.
INGOSSTRAKH is one of the leading insurance groups in Russia. It keeps a strong competitive position and a wide distribution network. INGOSSTRAKH has been working on international and domestic insurance market since 1947. In 1Q2020 INGOSSTRAKH ranked 4th on the Russian insurance market with more than 6% of the market GWP.