Insurance Company Jusan Garant JSC

The stable outlook reflects our view that over the next 12 months, Jusan Garant will be able to withstand the current recession without compromising its competitive position and capitalization. We also expect the company to preserve current conservative investment and underwriting standards. We could take a negative rating action in the next 12 months if: Capital adequacy deteriorated due to the payout of a material amount of dividends or support to the banking group via other available instruments; Competitive position weakened, for example, after a substantial insurance loss or a decline in premium volumes; or The company revised its investment strategy, resulting in average asset quality declining to 'B' or lower. We could take a positive rating action within the

...S&P Global Ratings expects Insurance Company Jusan Garant JSC's (Jusan Garant's) overall position in the Kazakhstani P/C insurance market will remain stable over the next two years. We expect the company's market share will be largely stable, maintaining its position among the top-10 largest market players. Jusan Garant's gradual improvement of underwriting performance will remain on track, in our opinion. We expect a slight increase in the combined ratio (loss and expense) due to the current macroeconomic environment and still high expense ratio. In addition, we anticipate that Jusan Garant will be able to maintain sustainable profitability with a return on equity (ROE) of 7%-8% in 2020-2021. We consider that Jusan Garant's investment portfolio's asset quality is gradually improving, but still reflects some concentration of the investment portfolio in the financial sector of Kazakhstan and significant foreign exchange exposure. On the other hand, we note the improving weighted average...

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