RUSSIA: SberInsurance received a rating from S&P

11 October 2021 — Marina MAGNAVAL
The international rating agency S&P has assigned SberInsurance, one of the leaders of the Russian market, a financial strength rating at BBB- with a stable outlook. The agency expects that in the future the company's capital will reach a level corresponding to the rating of BBB, the insurer said in its press-release.

According to S&P, SberInsurance has sufficient capital to support the current business volume as well as its expansion. According to the agency's forecast, in the next two years, the insurer's profitability will be higher than that of most peers. GWP of SberInsurance in 2021 will grow by 20-25% and will more than double annually in 2022-2023, the agency said.

"In 2020, the insurance company adopted an ambitious business development strategy aimed at high growth rates in motor, health and corporate insurance segments. Implementation of this strategy will be supported by good brand awareness of the parent bank and existing sales channels. Sberbank has the most significant sales network among Russian financial institutions, which includes more than 101.5 million retail (about 70% of the country's population) and 2.9 million corporate clients", S&P noted.

"Now we have become one of the few insurance companies that have an international S&P rating, and we expect that in the near future the agency will be able to revise it upwards. This rating makes it possible to participate in tenders of large companies that have high requirements to the participants - in particular, availability of an international rating. This helps to assess reliability of a future counterparty, and this applies not only to foreign, but also to Russian companies. Such a step will undoubtedly allow our company to strengthen its position in the corporate business segment, as now the possibilities of SberInsurance have significantly expanded", commented Mikhail VOLKOV, General Director of the company.

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