16 April 2018 Fitch Ratings has affirmed Export-Import Insurance Company of the Republic of Belarus’s (Eximgarant) Insurer Financial Strength (IFS) Rating at ’B’. The Outlook is Stable.
Key rating drivers
The Belarusian state has established strong support for Eximgarant through its legal framework to develop a well-functioning export insurance system. The framework provides a government guarantee on export insurance risks. It has led to significant capital injections in previous years and explicitly includes Eximgarant’s potential capital needs in Belarus’s budgetary system.
Capital is strong relative to the insurer’s business volumes, with a Solvency I-like statutory ratio of 33x at end-2017. The company has remained profitable over each of the last five years.
Eximgarant’s combined ratio improved to 71 % in 2017 from 74 % in 2016, due to a slightly lower loss ratio.
Eximgarant’s underwriting performance is underpinned by subrogation recoveries for export and domestic financial risks insurance. Subrogation income totalled BYN 8.5 million in 2017, equivalent to 14 % of the insurer’s combined ratio.