AM Best Revises Issuer Credit Rating Outlook to Positive for Halyk Insurance Company JSC

LONDON--(BUSINESS WIRE)--AM Best has revised the outlook to positive from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term ICR of “bbb” (Good) of the Joint-Stock Company Subsidiary of Halyk Bank of Kazakhstan Halyk Insurance Company (Halyk Insurance) (Kazakhstan). The outlook of the FSR is stable.

These Credit Ratings (ratings) reflect Halyk Insurance’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and marginal enterprise risk management (ERM).

The revision of the Long-Term ICR outlook to positive reflects AM Best’s expectation that Halyk Insurance will continue to develop its ERM capabilities to a level aligned with the company's evolving risk profile. Halyk Insurance is also expected to further enhance its risk management framework and demonstrate that it is integrated in the company's strategic decision-making.

Halyk Insurance’s balance sheet strength is underpinned by its risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), and by its relatively balanced investment portfolio with good liquidity. Internal capital generation is supported by the company’s dividend policy, which limits annual dividend distribution to a maximum of 50% of prior-year earnings. Halyk Insurance has accumulated a sizeable equity base that absorbs volatility associated with the company’s underwriting exposures and has a catastrophe reinsurance cover for risks in Kazakhstan and the near Central Asian countries. Offsetting balance sheet strength factors include the material exposure to the high financial system risk in Kazakhstan.

The company has a track record of strong operating performance supported by good underwriting results and steady investment income. Underwriting results remained robust overall in 2025, with the company reporting a net-net combined ratio of 86.3%, compared with 93.2 % in 2024, as calculated by AM Best. Nonetheless, the results remain exposed to volatility due to the performance of the compulsory motor third-party liability portfolio, which has been loss making. The company’s earnings have been supported by solid investment income, reflecting the high-interest rate environment in Kazakhstan.

Halyk Insurance is a leading insurer in the Kazakhstan non-life market, ranking second as measured by gross written premium in 2025. The company has been enhancing its profile through increased geographical diversification as it follows a strategy of expanding its international inwards reinsurance business. Furthermore, Halyk Insurance has also initiated strategic plan to improve its governance and risk controls to a level that is appropriate for the carrier’s size and complexity of operations.

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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.

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