AM BestTV: Consolidation Underway in Kazakhstan Insurance Market, Says AM Best Senior Financial Analyst

2019 MAY 07 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- In this episode of AM BestTV, Yevgine Asatryan, senior financial analyst, AM Best, said the insurance market in Kazakhstan continues to develop and faces a variety of market and regulatory adjustments. Click on http://www.ambest.com/v.asp?v=kazakhstan_english419 to view the entire program.

Asatryan spoke about balance sheet trends of the companies AM Best rates in Kazakhstan.

“Risk-adjusted capitalization varies quite significantly across the market,” said Asatryan. “However, looking at the rated insurers, the risk-adjusted capitalization is at its strongest level, as measured by Best’s Capital Adequacy Ratio. Looking at investment portfolios, they are actually quite liquid because they are dominated by bank deposits and bonds. However, they are concentrated in the local market, and so diversification can be quite weak and credit risk is an issue. Additionally, there is a high dependence on reinsurance.”

Asatryan also addressed profitability among rated carriers in the Kazakhstan market.

“Overall, the market is profitable. The return on equity was 18% in 2018, which is higher when compared with 2017. The life market is especially profitable. This is because the competition is lower in the life market, and the market has grown significantly in recent years. As for non-life insurers, again, most are profitable,” she said.

To access a copy of this special report, titled, “Kazakhstan Insurance Ratings: Benchmarking,” visit http://www3.ambest.com/bestweek/purchase.asp?record_code=284135.

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