OREANDA-NEWS. May 29, 2015. National Rating Agency has lowered its reliability rating on Construction Sector Insurance Group LLC (CSIG; Stroitelnaya Strakhovay Gruppa) to ‘A-’ in line with its earlier ‘negative’ outlook.

The rating downgrade reflects the materialized risk of customer base erosion, that predetermined CSIG’s business contraction in 2015 (premiums written in 1Q 2015, at RUB49.3 million were 75% less than a year earlier). Other rating constraints include the weakened owner support, existence of low-liquid assets and the fact that some of CSIG’s reinsurance partners have low reliability.

CSIG’s reliability is underpinned by its low combined ratio (56% in 1Q 2015), improved results from insurance operations and available distribution network capacity.