MINSK, 5 October (BelTA) - Fitch Ratings has affirmed Belarusian Republican Unitary Insurance Company's (Belgosstrakh) Insurer Financial Strength (IFS) Rating at 'B'. The Outlook is Stable, BelTA has learned from the agency.
The rating and Outlook mirror Belarus' 'B' Local Currency Long-Term Issuer Default Rating (IDR), which is on Stable Outlook, and reflects the insurer's 100% state ownership. The rating also reflects the presence of guarantees for insurance liabilities under compulsory lines, the insurer's leading market position in a number of segments in Belarus, sustainable profitability, adequate capital position, and the weak quality of the insurer's investment portfolio.
Belgosstrakh maintains its strong position in the Belarusian insurance market. It remains the exclusive provider of a number of compulsory lines, including state-guaranteed employers' liability, homeowners' property, agricultural insurance and other minor lines. The company has also a life portfolio consisting predominantly of voluntary pension annuities.
A change in Belarus' Local-Currency Long-Term IDR is likely to lead to a corresponding change in Belgosstrakh's IFS Rating. Significant changes to Belgosstrakh's relationship with the government would also likely have a direct impact on the insurer's ratings.