RUSSIA: S&P improves the long-term ratings of ROSGOSSTRAKH

22 October 2021 —
S&P Global Ratings has improved the financial strength rating and the credit rating of ROSGOSSTRAKH to BB +, with a stable outlook on the ratings. Since October 2020, the oldest insurer in Russia (the company celebrates its 100th anniversary in 2021) has had BB ratings. In April 2021, the agency improved its rating outlook to positive, the insurer said in a press release.

The positive change in the rating reflects in both stable credit metrics of the insurance company and the improved creditworthiness of its parent structure, Otkrytie Bank.

The rating agency noted stable market position of the insurer, which accounts for 5.2% of all non-life GWP in the Russian insurance market, as well as good business diversification - a significant share in the portfolio is generated by property insurance, personal insurance, medical insurance, compulsory, and voluntary motor insurance. S&P names the company's business risk profile and the continuing GWP growth among the positive rating factors. In the first six months of 2021, ROSGOSSTRAKH's GWP amounted to RUB 48.9 billion, which is 19.3% more y-o-y.

"The consistent increase of the company's ratings by S&P Global Ratings, even in the context of the ongoing pandemic, strengthens our confidence in the chosen business strategy, which provides for not only GWP increase and an improvement in financial performance, but also an improvement in the quality of customer service, including the use of digital technologies and supplementing our insurance products with services that our policyholders need", said General Director of ROSSGOSSTRAKH, Gennadiy GALPERIN.

ROSGOSSTRAKH is the "flagship" of the domestic insurance market. In the territory of the Russian Federation there are about 1600 representative offices of the company, which employs about 50 thousand employees and insurance agents. On October 6, 2021, the company celebrated 100 years since its establishment.

* 1 EUR = 86.5118 RUB (01.07.2021)