BELARUS: Fitch outlooks for three top insurers revised to positive; IFS ratings affirmed at B-
KEY RATING DRIVERS The revision of the Outlook to Positive on the IFS Ratings follows a similar action on Belarus's sovereign Long-Term Local Currency Issuer Default Rating (IDR) on 28 July 2017, which was affirmed at 'B-'. The ratings continue to reflect the insurers' 100% state ownership and capital support from the state when needed. In addition, the ratings reflect the leading market positions of the insurers in their respective segments, their sustainable profit generation and the fairly low quality of their investment portfolios.
The ratings of Belgosstrakh and of Eximgarant also benefit from state guarantees for insurance liabilities under compulsory lines.
RATING SENSITIVITIES A change in Belarus's Long-Term Local Currency IDR is likely to lead to a corresponding change in the insurers' IFS Ratings. A significant change in the insurers' relationship with the government would also likely affect the insurers' ratings