Research Update: Kazakhstan-Based Insurer Jusan Garant 'BB-' Ratings Affirmed Despite Profitability Drop; Outlook Stable

In 2024, Jusan Garant JSC reported a significant decrease in net income to Kazakhstani tenge (KZT) 125 million (about $239,000) from KZT4.4 billion in 2023, and the net combined (loss and expense) ratio worsened to 117% from 85%. This was due to higher-than-expected claims and reserving needs stemming from inward reinsurance, financial risks, and obligatory motor third-party liability insurance (OMTPL) insurance. We expect net income to recover to KZT1.5 billion-KZT2.2 billion in 2025 and to KZT4.0 billion-KZT6.0 billion in 2026 on improving underwriting results, with underwriting losses likely to be offset by investment income. We therefore affirmed our 'BB-' global scale and our 'kzA-' national scale ratings on Jusan Garant. The stable outlook reflects our expectations that Jusan Garant?s overall

...Rating Component Scores Business Risk Profile Weak Competitive position Fair IICRA Moderately high risk Financial Risk Profile Fair Capital and earnings Strong Risk exposure High Funding structure Neutral Anchor ##- Modifiers Governance Neutral Liquidity Adequate Comparable rating analysis 0 Current Credit Rating Local currency financial strength rating ##-/Stable/-- Foreign currency financial strength rating -- Local currency issuer credit rating ##-/Stable/-- Foreign currency issuer credit rating --...

Research Update