AM Best Affirms Credit Ratings of JSC Insurance Company Aldagi Group
AM Best has affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” (Good) of JSC Insurance Company Aldagi Group (Aldagi) (Georgia). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Aldagi’s balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, limited business profile and marginal enterprise risk management.
Aldagi’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which is assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). The company is expected to demonstrate continued resilience in its balance sheet strength supported by solid operating results, along with prudent capital and underwriting management. Aldagi’s balance sheet strength assessment also considers its liquid investment portfolio and moderate dependence on reinsurance, with counterparty credit risk reduced through its use of reinsurers with high financial strength. Offsetting factors include the company’s onerous dividend policy, which limits its internal capital generation, as well as Aldagi’s exposure to the moderate political risk and high economic and financial system risks in Georgia. Furthermore, the risk of material capital extractions due to Aldagi’s association with its ultimate parent, Georgia Capital PLC, is considered low as the latter has improved its financial stability in recent years.
