RUSSIA: S&P affirms AlfaStrakhovanie at BB+, outlook stable

5 August 2020 — Marina MAGNAVAL
S&P Global Ratings affirmed the long-term financial strength rating of AlfaStrakhovanie at BB+, outlook stable. The affirmation of the rating reflects the agency's view of the company's leading market position and strong operating performance, as S&P explained in the report.

The agency noted that AlfaStrakhovanie maintained strong market positions in 2019, however, it is expected that in 2020 the growth rate of the insurer's GWP will be quite low due to the slowdown in economic activity amid the pandemic. According to S&P, in 2021 the company's growth will be moderate at 5% and the combined net ratio will reach about 97%. At the same time the rating agency believes that in the next 12 months the company will be able to maintain a strong position on the market and demonstrate strong results in insurance.

At the end of 1Q2020, AlfaStrakhovanie ranked third on the Russian insurance market in terms of GWP, the growth rate was almost 9% y-o-y, and the market share was 6.31%.

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