UZBEKISTAN: S&P assigns ASIA Insurance a long-term financial strength rating of B- with positive outlook

22 June 2022 — Marina MAGNAVAL
On May 19, 2022, S&P Global Ratings assigned ASIA Insurance a long-term local currency financial strength rating of B-, with a positive outlook. The rating action was performed after ASIA Insurance's transformation into Joint Stock Company "ASIA INSURANCE SUG'URTA KOMPANIYASI", on February 24, 2022..

The positive outlook means that ASIA Insurance's ratings could be upgraded over the next 12 months if the company's capitalization continues to rise, the company maintains its current competitive position in the market and sustain earnings growth.

The agency's report indicates that creditworthiness of ASIA Insurance (full name - JSC ASIA INSURANCE SUG'URTA KOMPANIYASI) is supported by a satisfactory capital level compared to insurance volumes and expected positive operating indicators, showing business profitability.

The company's main activities (based on GWP volumes) include motor insurance, liability insurance, crop insurance, and borrower insurance. Together, these LoBs accounted for more than 70% of the company's net written premium in 2021. The agency also noted a significant share in the portfolio of such segment as financial risk insurance, and an increase in premiums from international reinsurance. The company's balanced approach to underwriting in these LoBs was underlined. In the future, the company plans to focus on property insurance and gradually expand inward reinsurance from outside Uzbekistan, while maintaining its position in the motor insurance segment - MTPL and Motor Hull.

According to experts from S&P Global Ratings, the company has sufficient liquidity in the form of cash and deposits to meet its obligations. ASIA Insurance is one of the top-15 insurance companies in Uzbekistan.

Sources: capitaliq.com and spglobal.com.



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