BAKU, Azerbaijan, September 17. US-based AM
Best rating agency has upgraded the Financial Strength Rating of
Kazakhstan’s Eurasia Insurance Company JSC to A- (Excellent) from
B++ (Good), while its Long-Term Issuer Credit Rating was upgraded
to "a-" (Excellent) from "bbb+" (Good).
According to a press release issued by the agency, the outlook
for both ratings was revised to stable from positive.
The agency said the ratings reflect Eurasia’s balance sheet
strength, assessed by AM Best as very strong, as well as its strong
operating performance, neutral business profile and appropriate
enterprise risk management.
"The rating upgrades reflect Eurasia’s demonstrated resilience
in its balance sheet strength fundamentals, supported by strong
internal capital generation and a dividend recapitalisation
policy," AM Best said.
The agency noted that the insurer’s balance sheet strength is
supported by risk-adjusted capitalisation at the strongest level,
as measured by Best’s Capital Adequacy Ratio (BCAR), as well as a
relatively conservative investment portfolio with good liquidity.
Eurasia manages its exposure to catastrophe risk through
reinsurance coverage for catastrophe losses from its domestic and
regional portfolio, as well as prudent underwriting guidelines and
low-risk retention limits.
AM Best said Eurasia’s financial flexibility from its parent
company, Eurasian Financial Company JSC, is limited, as the parent
has a weaker credit profile, primarily due to its ownership of
Eurasian Bank JSC. However, regulatory restrictions in Kazakhstan
substantially mitigate the risk of capital extraction that could
adversely affect Eurasia’s solvency and capitalisation.
Eurasia’s strong operating performance assessment is supported
by good underwriting profitability. The company recorded a non-life
net-net combined ratio of 71.2% in 2025 and 85.3% in 2024, as
calculated by AM Best.
"Whilst underwriting results have been subject to volatility in
recent years, the company actively manages the performance of its
portfolio by adjusting premium rates, utilising prudent risk
selection for its personal lines and applying conservative risk
retention limits for its inward reinsurance book," the agency
said.
Eurasia’s earnings have also been supported by solid investment
income, with the company reporting consistently positive operating
results. Its return on equity stood at 22.0% in 2025 and 19.8% in
2024, according to AM Best’s calculations.
The agency noted that Eurasia has a strong position in
Kazakhstan’s domestic (re)insurance market and benefits from
geographic diversification through international inward
reinsurance. The company is the largest (re)insurance company in
Kazakhstan, according to AM Best. Its international reinsurance
portfolio accounted for approximately half of premiums written in
2025, providing additional geographic diversification.
This business primarily originated from the United States,
Europe, and India, where Eurasia has maintained long-standing
relationships with its cedants. At the same time, the company faces
strong competition in international markets from insurers with more
established profiles.
AM Best is a global credit rating agency specializing in the
insurance industry. The company is headquartered in the United
States and operates in more than 100 countries, with regional
offices in London, Amsterdam, Dubai, Hong Kong, Singapore, and
Mexico City.
