Standard & Poors Increased Rating Forecast for Ingosstrakh
OREANDA-NEWS. October 05, 2010. The international rating agency Standard & Poor’s revised its outlook on Ingosstrakh from negative to stable. At the same time the agency confirmed long-term credit counterparty and financial stability ratings of Ingosstrakh at BBB-, as well as the national scale rating at ruAA+.
According to the experts of the agency the outlook revision is defined by the fact that the contingent liability of Ingosstrakh related to Soyuz Bank decreased resulting from increase of the bank’s own solvency. In spite of the risky nature of Ingosstrakh’s investments to Soyuz Bank, it does not constitute a significant danger for the insurer’s solvency in the near-term outlook, as stated in Standard & Poor`s report.
As before Ingosstrakh ratings reflect positive track record of the management team, high competitive ability in the Russian market and good liquidity indicators.
The above positive factors are restrained by high level of sector and country risk. Qualification level and professionalism of Ingosstrakh’s management team, according to the rating agency, comply with the international standards, and Ingosstrakh’s strategic mission which is to obtain maximum market share with the combined ratio of at most 100%, is quite realistic.
In its official report Standard & Poor’s emphasizes that Ingosstrakh has a strong competitive ability, which is maintained by such factors as long experience in the market (over 60 years), brand recognition, high professionalism, developed sales network and relatively low acquisition costs.
According to the agency’s experts, in the future Ingosstrakh will keep improving its competitive position thanks to efficient management and maintain quite positive results of operating activity.
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