Research Update: Cyprus-Based KLPP Insurance and Reinsurance Co. Ltd. Outlook Revised To Stable From Negative; 'BB+' Ratings Affirmed

Although KLPP continues to have qualified opinions in its 2023 annual report, under our base-case scenario, we think the insurance company will take necessary steps to resolve these with no significant effect on its capital and earnings. KLPP continues to have Russia-related assets but has actively reduced its exposure to the extent that it is manageable relative to the company's capital, in our view. We therefore revised our outlook on KLPP to stable from negative and affirmed our 'BB+' long-term insurer financial strength and issuer credit ratings on KLPP. The stable outlook reflects our view that KLPP will continue to take all the necessary steps to resolve the existing qualified opinions in its annual report, and that potential capital volatility

...- Although KLPP continues to have qualified opinions in its 2023 annual report, under our base-case scenario, we think the insurance company will take necessary steps to resolve these with no significant effect on its capital and earnings. - KLPP continues to have Russia-related assets but has actively reduced its exposure to the extent that it is manageable relative to the company's capital, in our view. - We therefore revised our outlook on KLPP to stable from negative and affirmed our '##+' long-term insurer financial strength and issuer credit ratings on KLPP. - The stable outlook reflects our view that KLPP will continue to take all the necessary steps to resolve the existing qualified opinions in its annual report, and that potential capital volatility from its Russian assets or the assets that are the basis for the qualified opinion will remain very limited....

Research Update