A.M. Best Revises Outlooks to Stable for INSURANCE COMPANY OF GAZ INDUSTRY SOGAZ

A.M. Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of "bbb" of INSURANCE COMPANY OF GAZ INDUSTRY SOGAZ (SOGAZ) (Russia). SOGAZ is the ultimate operating parent of the SOGAZ group, which provides a range of insurance and non-insurance related services.

The revision of the outlooks to stable reflects the resilience of the group's operating performance and risk-adjusted capitalisation despite the challenging environment in its domestic market in recent years. Another contributing factor is the relative improvement in the macroeconomic fundamentals of Russia's economy in 2017, although the exposure to political risk remains high.

The SOGAZ group's resilient technical performance, supported by good underwriting risk selection and effective expense management, is demonstrated by a strong five-year weighted average combined ratio of 88.7% (2012-2016), and an excellent combined ratio of 83.2% in 2016. The group's overall operating performance remained strong in 2016, with a profit before tax of RUB 30.2 billion (approximately USD 513.4 million), which was impacted by a foreign exchange loss of RUB 4.5 billion (approximately USD76.5 million) due to the appreciation of the Russian rouble in 2016. Read the full story
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