A.M. Best Affirms Rating of “AzRe Reinsurance” OJSC
A.M. Best has affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” of AzRe Reinsurance: http://www3.ambest.com/ambv/bestnews/presscontent.aspx?altsrc=9&refnum=24545
The outlook of these ratings remains stable.
The ratings reflect AzRe’s excellent risk-adjusted capitalisation, strong operating performance and solid domestic business profile as the leading reinsurer in Azerbaijan.
Offsetting these rating strengths is the concentration risk inherent within the group’s underwriting and investment portfolios, as well as increased financial system risk resulting from challenging economic conditions.
AzRe has achieved consistently strong underwriting and investment results. Risk-adjusted capitalisation is expected to remain at a strong level, in spite of planned growth, supported by good internal capital generation.
This rating gives the opportunity to accept better quality risks with a broader geographical spread, to develop relations with foreign reinsurance brokers and like-minded reinsurers in order to increase the portfolio from outside Azerbaijan and of course to help the local insurance industry to provide protection for a wide range of risks, including the largest and most complex risks.