The ratings reflect the stability of Halyk-Life's balance sheet, which AM Best rates as very strong, as well as its high operating performance, limited business profile and extreme corporate risk management.
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 the end of 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 an amount sufficient to implement the company's growth plans. Halyk-Life's investment portfolio is relatively conservative in terms of asset class: approximately 90% of investment portfolio consists of fixed income securities, cash and bank deposits. The ratings also take into account Halyk-Life's exposure to high levels of economic, political and financial systemic risks associated with Kazakhstan, where the company is incorporated, conducts most of its operations and owns a significant portion of its assets.
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