S&P Assigns VSK an Insurer Financial Strength Rating at BB with a Stable Outlook

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S&P Assigns VSK an Insurer Financial Strength Rating at BB with a Stable Outlook
24.12.2021
The international rating agency S&P Global Ratings has assigned VSK Insurance House an Insurer Financial Strength Rating of BB with a stable outlook.

The agency notes VSK's leading position among non-life insurance companies and the increase in operating indicators demonstrated by the company in 2021 as having a favorable impact on the insurer's creditworthiness.

According to the analysts' conclusions, the positive factors that influenced its assessment of VSK's stability are the company's established insurance product distribution channels and stable market position – the company is one of the top 6 largest non-life insurers in Russia. According to S&P's projections, in the next two years, VSK's gross annual premiums will reach a growth rate of about 10%, which corresponds to the agency's expectations regarding the growth of the Russian non-life insurance market.

For the first 9 months of 2021, gross premiums collected by VSK increased by 12%, with the main growth drivers being hull, accident, and sickness insurance, VHI, and property insurance. In total, the share of auto insurance accounts for 47% of the insurance gross premiums written by VSK in the first half of the year.
Contributing to the company's operations are its experienced management team, established risk management practices, and significant liquidity reserves.

According to the agency, VSK's improved underwriting results and consolidation of capital position at fair levels will help the company maintain its strong competitive position in the Russian insurance market in the next 12 months. The rating may be upgraded if the company further improves its capital position and maintains stable asset quality and operating performance.

"For the first time, the S&P Global Ratings rating agency has assigned VSK an insurer financial strength rating, and right out of the gate, they gave us a high international level of BB with a stable outlook. The rating assigned confirms VSK's leading position in the Russian insurance market, financial stability, reliability, and transparency," notes Alexander Tarnovsky, VSK Insurance House CEO.