OREANDA-NEWS. July 28, 2010. The international rating agency Moody’s Investors Service has published an updated review of ROSNO. Based on the updated performance study of the insurer, the agency has issued a report confirming its current financial stability rating at Baa1 on international scale and the Aaa.ru rating on the national scale, with the rating forecast set at "stable", reported the press-centre of ROSNO.

The analysts of Moody`s Investors Service regularly review the companies’ performance and check whether the latest company data go in line with the previously assigned ratings. In March 2007, ROSNO was for the first time rated on international scale, being assigned the Baa1 level. The rating forecast was set at "stable". At the same time, the agency Moody’s Interfax assigned ROSNO the Ааa.ru rating on the national scale.

In their updated review of ROSNO’s performance, which confirms the insurer’s current financial stability rating, Moody’s analysts note the following: "This rating reflects the support provided to the company by its sole shareholder, the conglomerate Allianz SE (with the financial stability and senior debt rating of Aa3). The rating also indicates the company’s stable position in the property and liability insurance market, its highly diversified business and extensive sales network. "This has mitigated the consequences of the company’s asset allocation strategy, which resulted in losses incurred by the company in 2008, its high expenditures and the dependence of its business profitability from the rapidly growing property and liability insurance market".

In 2009, ROSNO demonstrated a dramatic improvement of its performance figures, with the company’s net profit reaching 745 mln. roubles versus the year 2008 net loss of 2,305 mln. roubles. Certain role in this performance improvement was played by minimization of investment portfolio risk as a result of the year 2008 sale of stock portfolio and better insurance figures, thanks to the company’s measures aimed at optimizing tariffs and cleaning portfolio from unprofitable investments. As a result of this portfolio cleanup, the company saw a decrease in insurance premium collected from 24,689 mln. roubles in 2008 to 22,865 mln. roubles in 2009. The reduction of insurance premium also partially resulted from the general market contraction. Moody’s analysts expect the insurance premium figures to recover in 2010 and further on, in line with gradual recovery of the Russian economy. In Moody’s opinion, ROSNO’s capitalization is high in comparison to its Russian competitors.

ROSNO’s ratings reflect the significant support provided to the company by Allianz SE. Allianz made extensive capital injections in the company in 2008 and 2009, in order to support the company in the times of economic crisis and secure its future business growth. Allianz also provides ROSNO with solid reinsurance support and expertise.