MINSK, 2 April (BelTA) - Fitch Ratings has affirmed Export-Import Insurance Company of the Republic of Belarus (Eximgarant) Insurer Financial Strength (IFS) Rating at 'B'. The Outlook is Stable, BelTA learned from the agency.
The rating reflects the insurer's 100% state ownership. “On a stand-alone basis, the presence of guarantees for insurance liabilities under compulsory lines and export insurance, robust profit generation and adequate capital position are offset by a meaningful exposure to domestic financial risks and the low quality of the insurer's investment portfolio,” Fitch said.
The Belarusian state has established strong support for Eximgarant through its legal framework to develop a well-functioning export insurance system. The framework provides a government guarantee on export insurance risks and explicitly includes Eximgarant's potential capital needs in case of major export risks-related underwriting losses in Belarus' budgetary system.
A change in Fitch's view of the financial condition of the Republic of Belarus or significant change in the insurer's relations with the government would likely have a direct impact on Eximgarant's ratings.
Eximgarant of Belarus is one of the country's largest insurers. It offers about 60 types of insurance services in personal and property insurance coverage, liability insurance.