AM Best Places Credit Ratings of INSURANCE COMPANY OF GAZ INDUSTRY SOGAZ Under Review With Negative Implications

LONDON--(BUSINESS WIRE)--AM Best has placed under review with negative implications the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” (Good) of INSURANCE COMPANY OF GAZ INDUSTRY SOGAZ (SOGAZ) (Russia). Concurrently, AM Best has withdrawn the European Union-endorsed status of these Credit Ratings (ratings) following recent changes to EU sanctions. AM Best is working to understand the implications of international sanctions upon Russian entities.

These ratings have been placed under review due to heightened geopolitical, economic and financial system risk in Russia, where SOGAZ is domiciled and underwrites the majority of its business. The ratings will remain under review while AM Best evaluates the severity of the impact of international sanctions, imposed in response to the military conflict in Ukraine, on Russia’s economy and financial system, and the subsequent consequences for the credit profile of SOGAZ. Potential balance sheet and operational impacts include deterioration in the valuation and credit quality of investments, liquidity constraints, issues recovering from reinsurers and elevated claims costs.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.