Fitch Ratings has affirmed the financial stability ratings of the Belarusian Republican Unitary Insurance Company Belgosstrakh and the Belarusian National Reinsurance Organization (BNPO) at B-, with positive outlook. Ratings at the same level as Belarus long-term rating “B-” (outlook “Positive”) reflects the fact that Belgosstrakh and BNPO are 100% state-owned. The rating of “Belgosstrakh” takes into account the availability of guarantees for compulsory insurance, the leading market position of the company in a number of segments in the country and other factors.
The BNPO rating takes into account the company’s exclusive position in the Belarusian reinsurance sector, which is supported at the legislative level, strong capitalization and relatively high profitability from insurance activities. It is being noted that the government of Belarus has provided strong legislative support for “Belgosstrakh” in order to develop an effective insurance system for the working population, agricultural companies, as well as personal property. “Belgosstrakh” retains its strong position in the Belarusian insurance market and remains an exclusive insurer for certain types of compulsory insurance, which are guaranteed by the state, including workmen’s compensation insurance, insurance of buildings of citizens, agricultural insurance, and a number of other types of insurance.
According to Fitch, if the long-term rating of Belarus changes, it is likely that the ratings of Belgosstrakh and BNPO will change accordingly. A significant change in the relationship between companies and the government is also likely to have a direct impact on their ratings.
Fitch Ratings Inc. is an American corporation, which along with Standard & Poor’s and Moody’s is included in the “Big Three” of international rating agencies.