Fitch Ratings affirms Kafolat’s IFS at “BB-”

The affirmation of the rating is based on Fitch’s current assessment of the impact of the coronavirus pandemic, including its economic impact. Fitch’s pro-forma analysis indicates the high vulnerability of Kafolat’s risk-adjusted capital position to potential investment shocks, as measured by Fitch’s Prism factor-based capital model (FBM). However, Fitch believes that the government will be committed to support Kafolat as long as the insurer remains state-owned. Under Fitch’s pro-forma earnings stress tests, Kafolat demonstrated resilience to operational shocks and financial performance metrics are only marginally hit.

It should be noted that while maintaining the rating “BB-” with the outlook “Stable”, the company has ample opportunities to expand the insurance market of Uzbekistan. “BB-” confirms the stability of solvency, the improvement of corporate governance, the expansion of the spectrum and the improvement of the quality of insurance services provided by the company.

Affirmation of the international rating of JSC Kafolat Insurance Company also increases the company’s ability to attract foreign investment, expand the scope of cooperation with international financial institutions.