Research Update: Cyprus-Based Insurer KLPP Upgraded To 'BB' On Improved Competitive Position; Outlook Positive

Last year, KLPP made progress in building up its franchise in the international reinsurance market, posting stronger business growth, volumes, and underwriting performance than we expected. Geographic diversification has broadened and KLPP has reduced its regional concentration in Russia, a trend we believe will continue in 2019-2020. Consequently, we are raising our ratings on KLPP to 'BB' from 'BB-'. The positive outlook indicates that we could raise the ratings if KLPP makes further progress on its strategic plan to broaden its sources of premium and risk diversity in the next 12 months. On Feb. 21, 2019, S&P Global Ratings raised its long-term issuer credit and financial strength ratings on Cyprus-based KLPP Insurance and Reinsurance Co. Ltd. to 'BB' from 'BB-'.

...+ Last year, KLPP made progress in building up its franchise in the international reinsurance market, posting stronger business growth, volumes, and underwriting performance than we expected. + Geographic diversification has broadened and KLPP has reduced its regional concentration in Russia, a trend we believe will continue in 2019-2020. + Consequently, we are raising our ratings on KLPP to '##' from '##-'. + The positive outlook indicates that we could raise the ratings if KLPP makes further progress on its strategic plan to broaden its sources of premium and risk diversity in the next 12 months....

Research Update