Fitch: AzSigorta fails to take a decent position in the market


May 20, Fineko/abc.az. International rating agency Fitch Ratings has confirmed the financial stability rating of Azerbaijan’s insurance company AzSigorta at the level of ‘B’.

According to Fitch Ratings, the rating forecast is kept as Stable.

Fitch stated that this rating includes a number of economic consequences, including the negative impact of the coronavirus pandemic (COVID-19), Azigorta's strong capital position in the ‘Adequate’ category based on Fitch's ‘pro-forma’ analysis, measured on the ‘Prism Factor-Based Model (FBM)’ scale.

In addition, the Agency believes that Azsigorta could not take a decent position in the market under strong pressure from competitors.

"Company's premiums for 2019 decreased by 13% because of the reduction in premiums on compulsory insurance of driver’s civil liability. As a result, AzSigorta's market share in this segment decreased to 2% at the end of 2019 from 3% in 2018. AzSigorta lost its key distribution channel, through which it sold policies on compulsory insurance of driver’s civil liability with fairly low loss rates," the statement says.