TASHKENT, Uzbekistan, December 12. Fitch
Ratings has affirmed the Insurer Financial Strength (IFS) Rating
and Long-Term Issuer Default Rating (IDR) of Uzbekistan's JSC
Insurance Company SQB Insurance at ‘BB’ with a stable outlook,
Trend reports.
According to Fitch, the ratings reflect SQB Insurance’s
ownership by Uzbek Industrial and Construction Bank (UICB,
Long-Term IDR: BB/Stable), which remains a key source of support
for the insurer. Fitch notes the strong integration of SQB
Insurance within the parent group and expects continued backing
from UICB, including business development and capital support if
needed.
At the same time, the company’s standalone credit profile
remains constrained by its small operating scale, weak capital
position and high exposure to investment risks. SQB Insurance held
around a 2 percent market share in 2024 and 9M25, with its
portfolio still largely focused on financial risk insurance.
Group-related business has been declining as the company develops
alternative sales channels, although its reliance on the parent
remains significant.
Fitch also highlights that SQB Insurance’s profitability is
supported mainly by strong investment income, primarily from
local-currency bank deposits. While investment returns have helped
sustain solid profitability, underwriting performance remains
weak.
The agency noted improvements in the company’s reinsurance
protection, with most ceded liabilities now placed with ‘A’-rated
international reinsurers, compared to a predominantly regional
focus in previous years. However, Fitch warned that the gradual
tightening of capital requirements through 2029 could put
additional pressure on the insurer’s solvency position.
