The long-term issuer credit rating of ROSGOSSTRAKH affirmed at BB, outlook stable, despite the extremely high dividends of RUB 12.2 billion (~EUR 0.13 billion*), that the company will pay to its parent financial corporation in 2021, the press-release of S&P Global ratings said.

The stable outlook reflects the agency's expectation that the insurer "will continue to show satisfactory capital through profit retention over the next 12 months, with continual business growth in 2021". S&P also noted that ROSGOSSTRAKH "continues posting positive underwriting results, reporting a net combined (loss and expense) ratio of 97% for the first nine months of 2020". The rating agency expects that the company will have a combined ration of 98%-99% for 2020 and it will increase a bit towards 100% in 2021 due to intensifying competition on the local insurance market, particularly in motor insurance.

According to the experts, expected continued growth in the insurer's premium base support the creditworthiness. For 9 months of 2020, ROSGOSSTRAKH ranked 6^th on the Russian market in terms of GWP and recorded premium growth at 9.15% y-o-y.

* at the following exchange rate:
EUR 1 = RUB 89.8262 (as of 21.12.2020)