"Fitch Ratings" agentliyi Azərbaycanın "Azsığorta" şirkətinin Sığortaçı Maliyyə Davamlılığı (IFS) reytinqini "B+"dan "B"yə salıb, proqnoz "Sabit"dir.

"Marja" xəbər verir ki, bu barədə Agentliyin yaydığı məlumatda bildirilir.

Reytinq endirimi "Azsığorta"nın zəifləmiş biznes profilinin 2017-ci ildə də əsaslı şəkildə bərpa olunmayacağıbı əks etdirir.

Fitch Downgrades AzInsurance IFS to 'B'; Outlook Stable

 Fitch Ratings has downgraded AzInsurance OJSC's Insurer Financial Strength (IFS) rating to 'B' from 'B+'. The Outlook is Stable.

KEY RATING DRIVERS

The downgrade reflects AzInsurance's weakened business profile and Fitch's expectations that this will not recover significantly in 2017. The downgrade also reflects the company's sharply lower operating profitability in 9M16 and continuing high investment risk. The rating also takes into account the company's practice of very high profit distributions to the shareholder.

In 9M16, AzInsurance's total gross written premiums (GWP) decreased by 34% compared with 9M15 in the context of the worsened macroeconomic environment in Azerbaijan. The company faced a double-digit contraction in GWP in the most profitable line in its portfolio, cargo, with the share of cargo insurance plummeting to 4% of the portfolio in 9M16 from 28% in 9M15. Total GWP also fell by 11% in 2015 and 13% in 2014.

AzInsurance's underwriting result worsened to a loss of AZN1.9bn in 9M16 from a profit of AZN10bn in 9M15, with the combined ratio increasing sharply to 116% from 59% in 9M15. Moreover, the company reported a significantly worse administrative expense ratio of 66% for 9M16 (9M15: 36%), reflecting fixed costs while business volumes fell significantly.

AzInsurance's investment portfolio contains significant concentrations in single counterparties. Cash and bank deposits with sister company AFB Bank ASC accounted for 37% of the insurer's investments at end-9M15 (end-2015: 51%). This exposure has also resulted in a high affiliated investment leverage ratio, which reached 62% at end-2015 (end-2014: 72%).

AzInsurance's risk-adjusted capital score, based on Fitch's Prism factor-based model, was 'Strong' based on end-2015 results, considerably improved compared with end-2014 results. However, this improvement was due to the expectation of a decrease in dividend payments in 2016 rather than an underlying improvement of the insurers' available capital or risk profile. Fitch does not expect further improvement of the risk-adjusted capital position in 2016 given the modest net income the company is expected to report in the full year.

The ratio of 2013-2015 net profits paid as dividends was 92%. Fitch understands that the shareholder takes into account the insurer's robust regulatory capital position (the regulatory solvency ratio was 379% at end-9M16) when deciding on the dividend payouts.

RATING SENSITIVITIES
Further weakening of AzInsurance's business profile as measured by its market share and business mix, or capital depletion due to investment losses, could result in a downgrade.

A significant recovery in AzInsurance's business profile and operating performance could lead to an upgrade, providing also that the quality of the investments does not weaken.