OREANDA-NEWS. National Rating Agency has affirmed its ‘AA-’ reliability rating on Yugoria State Insurance Company OJSC (Yugoria), taking into account the support rating of ‘Rs2’. The company receives a stand-alone reliability rating of ‘A-’ on the national scale. On June 10, 2008, Yugoria was assigned NRA’s reliability rating of ‘AA’, which was affirmed consecutively in 2009, 2010 and 2011. In August 2012, the rating was lowered to ‘AA-’ and affirmed at this level in 2013 and 2014.

Positive rating factors include the insurer’s strongly supportive owners, well-developed branch network, high quality reinsurance partners, low receivables level (9.4% as of Apr. 1, 2015), and strong solvency margin, which is 55% higher than the regulatory minimum.

Offsetting these strengths are the insurer’s non-compliance with regulatory requirements regarding the insurance reserve allocation percentage formula, high debt burden, weak liquidity position and its charter capital exceeding net assets. Other factors affecting Yugoria’s reliability are the decreased insurance portfolio diversification (motor insurance accounts for 83% of total premiums) and the fact that some assets are being pledged.