A.M. Best Assigns Ratings to Insurance Company Eurasia JSC.OLDWICK, N.J. -- A.M. Best Co. has assigned a financial strength rating of B++ (Very Good) and an issuer credit rating of "bbb" to Insurance Company Eurasia JSC JSC Johnson Space Center (NASA) JSC Joint Stock Company JSC Java Studio Creator JSC Joint Steering Committee JSC Joint Standing Committee JSC Journal of Symbolic Computation JSC Joint Scientific Committee (Eurasia) (Kazakhstan). The outlook for both ratings is stable. The ratings reflect Eurasia's leading position in Kazakhstan's rapidly expanding insurance market, strong risk-adjusted capitalisation and excellent financial performance. Offsetting factors are the relative lack of international diversification International diversification The attempt to reduce risk by investing in more than one nation. By diversifying across nations whose economic cycles are not perfectly correlated, investors can typically reduce the variability of their returns. and the restrictive investment regulatory environment in which the company operates. A.M. Best believes that Eurasia is likely to consolidate its leading position in a market characterised by expanding insurance demand, shortage of capacity and increasing regulatory capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. . This is due to the company's above average capitalisation level, focus on large corporate clients and strong relationships with international brokers and reinsurers. A.M. Best believes that, given the company's record in profitability and no-dividend policy, Eurasia's risk-based capital position is strong enough to absorb the sustained growth expected to continue for the next two years (10% per annum until 2008 from KZT KZT In currencies, this is the abbreviation for the Kazakhstan Tenge. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 12.7 billion (USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 95 million) in 2006 in gross premiums written When a non-life insurance company closes a contract to provide insurance against loss, the revenues (premiums) expected to be received over the life of the contract are called gross premiums written. ). The company is successfully managing to move away from compulsory business (which is subject to government regulated rates), which after being the core business during its initial years, is expected to represent only 15% of gross premiums written in 2006. Due to the relative lack of competition in Kazakhstan's insurance market and Eurasia's retention levels in excess of 80%, A.M. Best believes that the loss ratio is likely to remain well below 60%. Large exposures and concentration risks are significantly mitigated through a well diversified cession The act of relinquishing one's right. A surrender, relinquishment, or assignment of territory by one state or government to another. The territory of a foreign government gained by the transfer of sovereignty. CESSION, contracts. programme to international reinsurers rated "A" or above on A.M. Best's rating scale. In A.M. Best's opinion, despite some business opportunities from neighbouring countries, Eurasia is likely to remain a local insurer for the next two to three years. For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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