RUSSIA: FITCH affirms Rossiya Insurance Company at CCC

23 August 2013 —
Fitch Ratings has affirmed Russia-based Rossiya Insurance Company's (Rossiya) Insurer Financial Strength (IFS) rating at 'CCC' and National IFS rating at 'B(rus)' with Negative Outlooks.

At the same time Fitch has withdrawn the ratings as Rossiya has chosen to stop participating in the rating process. Therefore, Fitch will no longer have sufficient information to maintain the ratings. Accordingly, Fitch will no longer provide ratings or analytical coverage for Rossiya. KEY RATING DRIVERS Fitch sees Rossiya's current business model as unviable given the significant deterioration of the operating environment in the local compulsory motor third party liability (MTPL) insurance segment. For Rossiya, the impact is exacerbated by company's lack of success from its efforts to achieve a healthier portfolio structure with less weighting to the MTPL business. In Fitch's opinion, there might be a heightened risk of regulatory preventive actions as a result. Fitch also believes that the insurer's limited success in strengthening its profile since its acquisition in 2009 reduces the value of the company to its owner.

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RUSSIA: FITCH affirms Rossiya Insurance Company at CCC
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