AM Best again cuts ratings of Russian insurers
Russian insurers Ingosstrakh Insurance and GIC Perestrakhovanie downgraded for the second time in three weeks due to ‘deterioration in their balance sheet strength’ in the wake of further increases in geopolitical, economic and financial system risk in Russia
AM Best has downgraded the ratings of Russian insurers Ingosstrakh Insurance and GIC Perestrakhovanie for the second time in three weeks amid the ongoing invasion of Ukraine.
The rating agency cited the “deterioration in their balance sheet strength due to further increases in geopolitical, economic and financial system risk in Russia”.
AM Best said the downgrades also factored in the risk of elevated claim costs tied to the depreciation of the ruble and associated inflationary pressures.
GIC Perestrakhovanie’s long-term credit rating has been lowered to “bb+” (fair) from “bbb-” (good) and its financial strength rating has been dropped to B (fair) from B+ (good).
AM Best cut Ingosstrakh’s long-term issuer credit rating to “bb” (fair) from "bb+” (fair), while affirming its financial strength rating of B (fair).
It left in place Russian Reinsurance’s “bb-” (fair) credit rating and B- (fair) financial strength rating, which were downgraded earlier this month.
However, for all three companies’ ratings, AM Best has maintained its under review with negative implications status, while also withdrawing the ratings for commercial reasons, citing sanctions recently imposed by the EU that will ban the provision of ratings to legal persons, entities or bodies established in Russia.