...Our ratings on KLPP are underpinned by its overall strong and high quality capital, which results in the company's capital adequacy being well above our '###' benchmark. Very modest liability risks arising from premiums and reserves and an investment profile with a predominant focus on short-duration investment-grade fixed-income assets also contribute to this. KLPP is focused on writing predominantly casualty and property-related risks in selected geographies. KLPP has shown its entrepreneurial flair in targeting business in Russia and we expect the company to gradually broaden the range of business it writes. This is supported by the owners' experience and connections. Offsetting these strengths, we note the absolute small level of premiums relative to more established competitors, combined with a material concentration in one line of business. In addition, KLPP's ability to sustainably write profitable, recurring, and increasingly diverse business remains somewhat unproven given its...
