articles Ratings /ratings/en/research/articles/220331-ratings-on-russian-insurers-withdrawn-12320919 content esgSubNav
In This List
NEWS

Ratings On Russian Insurers Withdrawn

COMMENTS

Country Risk Assessments Update: October 2024

COMMENTS

Protection And Indemnity Clubs Opt For Rate Hikes In 2025

COMMENTS

EMEA Insurers Ratings List: Financial Strength Ratings And Scores

COMMENTS

Floods In Rio Grande do Sul: Insurers' Earnings Resisted Claims Spike; Catastrophic Coverage Could Grow


Ratings On Russian Insurers Withdrawn

LONDON (S&P Global Ratings) March 31, 2022--S&P Global Ratings today said that it has withdrawn its local currency ratings on Russian insurers (see Ratings List for full details). Before the withdrawal, the long-term local currency ratings on all (excluding SCOR Perestrakhovaniye) were 'CCC+' and remained on CreditWatch developing.

At the time of the withdrawal, our long-term local currency rating on SCOR Perestrakhovaniye was 'AA-' with a negative outlook, reflecting the qualifying guarantee from its ultimate parent.

The withdrawal of these ratings follows the EU's decision on March 15, 2022, to ban the provision of credit ratings to legal persons, entities, or bodies established in Russia and our ensuing announcement that we will withdraw all our outstanding ratings on relevant issuers before April 15, 2022, the deadline imposed by the EU (see "S&P Global Ratings To Withdraw Ratings On Russian Entities," March 21, 2022).

Our ratings on Russia-based insurers (excluding SCOR Perestrakhovaniye) at the time of the withdrawal reflect our expectation that these insurers are unlikely to default on obligations due over the next 12 months. This is despite our lowering of our foreign and local currency sovereign credit ratings on Russia to 'CC/C' from 'CCC-/C' on March 17, 2022. With regards to SCOR Perestrakhovaniye, we believe the entity will continue to benefit from its unlimited parental guarantee on insurance claims.

We note that the Central Bank of Russia issued a decree according to which Russian companies are prohibited from transferring risks to reinsurance companies from a list of "unfriendly" countries. We understand Russia-based insurers will need the approval of the Central Bank in order to make off-shore payments. We believe that the insurers are likely to meet their financial commitments over the near term, considering their financial resources, including domestic reinsurance backstop facilities as well as low financial leverage on balance sheets (see "Russian Insurers Downgraded On Severely Adverse Macroeconomic Climate," published March 7, 2022).

We already suspended our ratings on SOGAZ and Rosgosstrakh due to international blocking sanctions (see "Related Research"). These ratings are now also formally withdrawn, as a result of the announcement mentioned above.

Related Criteria

Related Research

Ratings List

To From
* * * * * * * * * * * * * * AlfaStrakhovanie PLC * * * * * * * * * * * * *
CreditWatch Update/Not Rated Action

AlfaStrakhovanie PLC

Financial Strength Rating NR CCC+/Watch Dev/--
* * * * * * * * * * * * * * Energogarant PJSIC * * * * * * * * * * * * * *
CreditWatch Update/Not Rated Action

Energogarant PJSIC

Issuer Credit Rating NR CCC+/Watch Dev/--
Financial Strength Rating NR CCC+/Watch Dev/--
* * * * * * * * * * * * Ingosstrakh Insurance Co. * * * * * * * * * * * *
CreditWatch Update/Not Rated Action

Ingosstrakh Insurance Co.

Issuer Credit Rating NR CCC+/Watch Dev/--
Financial Strength Rating NR CCC+/Watch Dev/--
* * * * * * * * * * * * Lexgarant Insurance Co. Ltd. * * * * * * * * * * *
CreditWatch Update/Not Rated Action

Lexgarant Insurance Co. Ltd.

Issuer Credit Rating NR CCC+/Watch Dev/--
Financial Strength Rating NR CCC+/Watch Dev/--
* * * * * * * * * * * * * * * * * SCOR SE * * * * * * * * * * * * * * * *
CreditWatch Update/Not Rated Action

SCOR Perestrakhovaniye

Financial Strength Rating NR AA-/Negative/--
* * * * * * * * * * * * * * * * * VSK Insurance JSC * * * * * * * * * * * * * * * *
CreditWatch Update/Not Rated Action

VSK Insurance JSC

Financial Strength Rating NR CCC+/Watch Dev/--
* * * * * * * * * * * * * * Stanpeak Ltd. LLC * * * * * * * * * * * * * *
CreditWatch Update/Not Rated Action

Reso-Garantia Insurance Co.

Issuer Credit Rating NR CCC+/Watch Dev/--
Financial Strength Rating NR CCC+/Watch Dev/--

Stanpeak Ltd. LLC

Issuer Credit Rating NR CCC+/Watch Dev/--
NR--Not rated

Certain terms used in this report, particularly certain adjectives used to express our view on rating relevant factors, have specific meanings ascribed to them in our criteria, and should therefore be read in conjunction with such criteria. Please see Ratings Criteria at www.standardandpoors.com for further information. A description of each of S&P Global Ratings' rating categories is contained in "S&P Global Ratings Definitions" at https://www.standardandpoors.com/en_US/web/guest/article/-/view/sourceId/504352 Complete ratings information is available to subscribers of RatingsDirect at www.capitaliq.com. All ratings affected by this rating action can be found on S&P Global Ratings' public website at www.standardandpoors.com. Use the Ratings search box located in the left column. Alternatively, call one of the following S&P Global Ratings numbers: Client Support Europe (44) 20-7176-7176; London Press Office (44) 20-7176-3605; Paris (33) 1-4420-6708; Frankfurt (49) 69-33-999-225; or Stockholm (46) 8-440-5914

Additional Contact:Insurance Ratings EMEA;
Insurance_Mailbox_EMEA@spglobal.com

No content (including ratings, credit-related analyses and data, valuations, model, software, or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced, or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor’s Financial Services LLC or its affiliates (collectively, S&P). The Content shall not be used for any unlawful or unauthorized purposes. S&P and any third-party providers, as well as their directors, officers, shareholders, employees, or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, timeliness, or availability of the Content. S&P Parties are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, for the results obtained from the use of the Content, or for the security or maintenance of any data input by the user. The Content is provided on an “as is” basis. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT’S FUNCTIONING WILL BE UNINTERRUPTED, OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs or losses caused by negligence) in connection with any use of the Content even if advised of the possibility of such damages.

Credit-related and other analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact. S&P’s opinions, analyses, and rating acknowledgment decisions (described below) are not recommendations to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security. S&P assumes no obligation to update the Content following publication in any form or format. The Content should not be relied on and is not a substitute for the skill, judgment, and experience of the user, its management, employees, advisors, and/or clients when making investment and other business decisions. S&P does not act as a fiduciary or an investment advisor except where registered as such. While S&P has obtained information from sources it believes to be reliable, S&P does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives. Rating-related publications may be published for a variety of reasons that are not necessarily dependent on action by rating committees, including, but not limited to, the publication of a periodic update on a credit rating and related analyses.

To the extent that regulatory authorities allow a rating agency to acknowledge in one jurisdiction a rating issued in another jurisdiction for certain regulatory purposes, S&P reserves the right to assign, withdraw, or suspend such acknowledgement at any time and in its sole discretion. S&P Parties disclaim any duty whatsoever arising out of the assignment, withdrawal, or suspension of an acknowledgment as well as any liability for any damage alleged to have been suffered on account thereof.

S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of S&P may have information that is not available to other S&P business units. S&P has established policies and procedures to maintain the confidentiality of certain nonpublic information received in connection with each analytical process.

S&P may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or from obligors. S&P reserves the right to disseminate its opinions and analyses. S&P's public ratings and analyses are made available on its Web sites, www.spglobal.com/ratings (free of charge), and www.ratingsdirect.com (subscription), and may be distributed through other means, including via S&P publications and third-party redistributors. Additional information about our ratings fees is available at www.spglobal.com/usratingsfees.

 

Create a free account to unlock the article.

Gain access to exclusive research, events and more.

Already have an account?    Sign in