AM Best has continued its downgrading of the financial strength of Russian insurers and reinsurers in response to the country’s invasion of Ukraine.
A new note from the agency says that it has downgraded Russian Re’s Financial Strength Rating to B- (Fair) from B (Fair) and the Long-Term Issuer Credit Rating to ‘bb-‘ (Fair) from ‘bb+’ (Fair). The move follows AM Best placing a number of insurance companies under review last week.
In regard to the latest downgradings, AM Best released a note.
In part, it said: “The ratings reflect Russian Re’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and marginal enterprise risk management. The rating downgrades reflect deterioration in the company’s balance sheet strength due to heightened geopolitical, economic, and financial system risk in Russia, and takes into consideration the impact of inflation on the adequacy of reserves, liquidity constraints, and the company’s dependence on foreign reinsurers.”
AM Best also announced that it had downgraded the Financial Strength Rating to B (Fair) from B++ (Good) and the Long-Term Issuer Credit Rating to ‘bb+’ (Fair) from ‘bbb’ (Good) of Ingosstrakh Insurance Company PJSC (Ingosstrakh) (Russia).
The agency also said that it had downgraded GIC Perestrakhovanie’s Financial Strength Rating to B+ (Good) from B++ (Good) and its Long-Term Issuer Credit Rating to ‘bbb-‘ (Good) from ‘bbb’ (Good).