OREANDA-NEWS. International rating agency AM Best affirmed the financial strength rating of SOGAZ OJSC, the parent company of SOGAZ Insurance Group, at B++ and issuer credit rating at "bbb". The forecast for both rating still remains negative.

According to the official announcement of A.M. Best the ratings reflect a considerable consolidated capitalization of SOGAZ Group, strong operational performances and stable competitive position of SOGAZ in corporate insurances. Partially the weak Russian Economy influences on these positive rating factors according to A.M. Best.

The consolidated capitalization of SOGAZ remains on the high level due to the large capital basis and a strong internal capital generation - despite the comparatively high dividends, considerable growth of premiums and increase of reserves, which had a negative influence on the evaluation of the capital adequacy in 2014 calculated according to А.М. Best.

SOGAZ Group demonstrates positive results of operating activity, which are characterized by the high capital income and comparatively law combined coefficient. Analysts of А.М. Best expect that the results of SOGAZ Group will remain positive despite a higher level of costs connected with the further development of regional and retail businesses of the Group.

A negative forecast under SOGAZ's ratings continues to reflect the Group's exposure to unstable macroeconomic conditions in Russia. At the same time it shall be pointed out that SOGAZ took measures to increase stability to possible negative factors by increase in investment portfolio of tools share with a higher rating, reduction of equity portfolio and increase of share of short-term deposits.