The rating was affected by the improvement of the company's liquidity and solvency (equity at the end of 3Q2019 increased by 73.8% y-o-y), high rates of return on capital (61.2% at the end of 3Q2019) and investments (9.8%), high quality and diversification of assets. The agency also positively noted the highly diversified client base.
Expert RA noted moderate diversification of the company's portfolio. However, a rather big share of life insurance investments (42.5%) during the first half of 2019, given that this segment is quite unstable, is a negative rating factor. Domination of the key sales channel also negatively affects the rating (in 1H2019 about 81.7% of GWP were generated through credit organizations, and 49.6% of GWP - through the five largest intermediary banks).
According to 1H2019 market results, RENAISSANCE LIFE ranked 12th among 174 insurance companies on the market.