BAKU, Azerbaijan, September 11. S&P Global
Ratings has upgraded the long-term issuer credit and insurer
financial strength ratings of Kazakhstan’s Eurasia Insurance Co. to
‘BBB+’ from ‘BBB’, according to the agency.
S&P also raised the ratings of its subsidiary Eurasia Life
JSC to ‘BBB’ from ‘BBB-’. The outlook on both companies is stable,
while their ‘kzAAA’ Kazakhstan national scale ratings were
affirmed, S&P said.
According to the agency, Eurasia’s operating performance
remained profitable and improved further in the first half of 2026,
with its annualized return on equity (ROE) rising to 32% from 22%
in 2025.
The improvement was driven by stronger technical profitability,
lower-than-expected catastrophe losses and the appreciation of the
Kazakhstani tenge against the US dollar, which resulted in
favorable revaluations of foreign-currency-denominated claims and
liabilities.
Eurasia Life’s contribution to the group’s net income rose to
around 20% in the first half of 2026 from 14% in the same period of
2025, according to S&P.
The agency expects the group’s net combined ratio to remain at
75%-80%, compared with an expected Kazakhstani market average of
85%, while ROE is projected to remain at 15%-20%. S&P also
noted that around 80% of the group’s total invested assets are held
in instruments rated ‘BBB’ and above.
At year-end 2025, stressed liquid assets exceeded stressed
liabilities by about 3.2 times, which S&P described as
exceptional. The agency expects the company to maintain its
liquidity ratio above 2.2 times over the next 12-24 months.
“Eurasia’s prudent retention policies and reinsurance protection
mitigate its exposure to catastrophe risk, which help prevent
significant losses,” S&P said.
The stable outlook reflects S&P’s expectation that the group
will sustain its strong competitive position, very strong capital
adequacy and sufficient liquidity over the next two years.
