A.M.BEST HAS AFFIRMED UNITY RE’S FINANCIAL STRENGTH RATING
On 30.10.2015, A.M.Best Europe – Rating Services Ltd. has affirmed a financial strength rating of Unity Re at B+ (Good) and an issuer credit rating of ‘bbb-‘.
The established rating reflects Unity Re’s solid market profile in Russia’s reinsurance sector.
A.M.Best believes, that Unity Re will maintain an adequate level of capitalization, due to its good quality reinsurance protection and solid earnings retention. Planned expansion for the year is expected to emanate from Unity Re’s neighboring Kazakhstan market, following a change in regulation that supports the use of Russian reinsurers that maintain secure ratings.
Unfortunately, the outlook on Unity Re’s ratings remains negative due to the company’s exposure to the fragile macroeconomic conditions in Russia. A.M.Best has noted the improving quality of Unity Re’s fixed-income portfolio since 2014, uncertainty remains with regard to the impact of a prolonged weakening of Russia’s macroeconomic environment on Unity Re’s operating performance and balance sheet strength.
Svetlana Shekhovtsova, Chief Executive Officer: « Maintaining secure rating level has always been a challenge for any Russian based company. In current macroeconomic and political environment it has become an even more difficult task, which we had successfully accomplished. Business is extremely rating sensitive nowadays, putting a proper rating level among key factors of success, especially in Kazakhstan a market which we otherwise would have lost in case we failed to affirm our rating at B+ level.
Our partners can always rely on Unity Re despite of the ongoing market turbulence. We are doing our best to keep our financial standing solid to ensure that our clients are safe and their business is secured.»
The official press release of A.M.Best Europe – Rating Services Ltd. is available here.