OREANDA-NEWS. Moody's Investors Service has today announced that it assigned a first-time global scale insurance financial strength rating (IFSR) of Ba1 to the Russian insurer OAO ROSNO, Moscow, Russia. The rating outlook is stable.

At the same time, Moody's Interfax Rating Agency assigned a Aa1.ru national scale rating to ROSNO.

The company is majority owned by two shareholders, AFK Sistema (B1 long-term corporate family rating), a Russian conglomerate with investments in telecommunications, IT, real estate and financial services with a 49.2% stake and Allianz SE (Aa3 insurance financial strength and senior unsecured debt rating), a major international insurance group headquartered in Munich, Germany, with a 47.3% stake. Both shareholders have substantial financial resources to support ROSNO's future growth. Moody's also notes ROSNO's well-developed distribution network, prudent asset allocation policy and established track record of profitability, as evidenced by a combined ratio of less than 100% in each of the last 5 years.

This is offset by ROSNO's relatively low capitalisation (Gross Underwriting Leverage of 668% as of year-end 2005), high expense ratio (41.7% in 2005), varying profitability by line of business, as well as lack of geographic diversification outside the country.