OREANDA-NEWS. National Rating Agency has lowered its reliability rating on Eurostrakhovanie Insurance Company to ‘CC’.

The rating downgrade is triggered by the regulator’s sanctions against the insurer and suspension of its license. Another factor pressuring the rating is the negative premium dynamics (RUB11.7 million for 1Q 2015, a 3x decrease compared with a year earlier), low asset quality and high level of risk retention combined with the absence of reinsurance protection.

Significant seasonal swings in writing new business associated with the company’s focus on agricultural risks (99.9% of total premiums written) heighten the risk of the customer base considerable reduction — even if the company’s license were to be re-established.