These credit rating actions followed the official announcement as of August 15, 2018 by the company's shareholder about the decision to merge the related company Kazkommerts-Life to Halyk Life. The decision to merge is the result of acquisition of Kazkommertsbank, the parent company of Kazkommerts-Life, by Halyk Bank, Halyk Life founder. It is necessary to have the regulator’s official permission for merger; the completion of merge procedure is planned for early 2019.
Besides, there is a financial uncertainty in terms of impact on the company's future revenue, pre-tax profits and market position of recent changes in regulator’s requirements that prohibit companies from reinsurance of workers' accident insurance from local non-life insurers, as well as decisions of a key distribution partner about a gradual transfer of business to another insurer.
The ratings will remain under revision until A.M. Best completes the assessment of the impact of these events on the company's basic rating factors and the merger process is completed.
Source: http://www.xprimm.com
Photos per website: halyklife.kz
