OREANDA-NEWS. On October 24, 2007 Insurance company Eurasia JSC (Almaty) had spread the information message with next contention, reported the press-centre of KASE:

A.M. Best Co. has affirmed the financial strength rating of B++ (Good) and the issuer credit rating of "bbb" of Eurasia Insurance Company JSC (Eurasia) (Kazakhstan). The outlook for both ratings remains stable.

The ratings reflect Eurasia's leading position in Kazakhstan's expanding insurance and reinsurance markets, an improving business profile, strong risk-adjusted capitalisation and excellent financial performance. An offsetting factor is its limited financial flexibility.

A.M. Best believes that Eurasia is likely to consolidate its leading position in the domestic market, with an improving business profile mainly supported by i ncreases in reinsurance business. Its portfolio has benefited by containing more property and marine risks, with less reliance on liability. Furthermore, Eurasia has focused on developing non-compulsory business, which currently accounts for 84% of gross premiums written.

Eurasia has a strong risk-adjusted capitalisation supported by sustained profitability and a no-dividend policy. The company's risk-based capital position is strong enough to absorb the sustained growth of up to 15% per annum over the next two years. The ultimate shareholders of Eurasia have taken measures towards ring-fencing the company's capital and surplus to ensure the continual development of the insurance operation. Any deterioration in the company's risk-adjusted capitalisation is anticipated to have a negative impact on the ratings.

In A.M. Best's opinion, operating performance has been excellent and comparable to 2005, with pre tax profits of KZT 4,1 billion (USD 34 million) in 2006, mainly driven by technical results with combined ratios of less than 60%. Pre tax profit is likely to continue improving despite increases in acquisition and commission costs driven by the company's changing business profile towards reinsurance. In A.M. Best's opinion, despite some business opportunities from neighbouring countries, Eurasia is likely to remain a local insurer for the next two to three years.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit Ratings Center of A.M.Best.

The given translation was made by Insurance company Eurasia and is not an official press- release from A.M. Best Company, Inc.