Insurance Company Tsesna-Garant JSC's scale, concentrated insurance portfolio, and negative operating performance make the company's business risk profile highly vulnerable in our view. We view industry and country risk as moderate because of the company's sole business focus on Kazakhstan. The financial risk profile is supported by "moderately strong" capitalization following a capital injection from shareholders and in view of the adequate quality of the investment portfolio. We have revised our view of the company's risk position to "high" from "moderate", reflecting continued underwriting performance volatility. Tsesna-Garant has less than adequate financial flexibility, given our expectation of rising capital requirements and low internal capital generation, which lead to heavy reliance on support from Tsesnabank, the company's owner, and from reinsurers.
