The ratings reflect the stability of Halyk-Life's balance sheet, which the agency assesses as very strong, as well as its high operating performance, limited business profile and extreme corporate risk management.
“Confirmation of credit rating is recognition of the financial soundness of our Company. We are proud of this latest achievement since it is very important for us that our clients who have entrust us with their insurance protection, and those who are just about to enter into an insurance contract, are confident that we are able to fulfill our obligations in the long term,” Zhanar Zhubaniyazova, Chairman of the Board, commented on the rating actions.
Halyk-Life's balance sheet strength is supported by risk-adjusted capitalization, which ranks at the highest level according to Best's Capital Adequacy Ratio (BCAR). At year-end 2022, BCAR, based on audited financial statements prepared in accordance with IFRS standards, was significantly above the minimum level required to achieve the highest rating. These figures are expected to remain at the same level in the future, supported by strong operating results and a dividend policy that allows earnings to be retained in amount sufficient to implement the company's growth plans. Halyk-Life's investment portfolio is relatively conservative by asset class with approximately 90% of the investment portfolio consisting of fixed income securities, cash and bank deposits.
AM Best is an international ratings agency, news publisher and analytics provider specializing in the insurance industry. Headquartered in the United States, the company operates in more than 100 countries and has regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.
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