LONDON--(BUSINESS WIRE)--A.M. Best has removed from under review with negative implications and changed the Financial Strength Rating to a Non-Rating Designation of E (Under Regulatory Supervision) from C (Weak) and the Long-Term Issuer Credit Rating to “e” from “ccc+” of JSC Salem Insurance Company (Salem) (Kazakhstan), following regulatory actions that prevent the company from writing business for six months.
These actions follow announcements by the National Bank of Kazakhstan, on 9 February and 3 March 2018, suspending Salem’s licences for compulsory and voluntary classes of business for six months. The regulator cited non-compliance with regulatory requirements as the reason for the suspensions. Salem’s regulatory solvency margin deteriorated to 0.58 as at 1 February 2018, breaching the minimum requirement of 1.00.
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