AM Best Affirms Credit Ratings of JSC Insurance Company Aldagi Group

LONDON--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” (Good) of JSC Insurance Company Aldagi Group (Aldagi) (Georgia). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Aldagi’s balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, limited business profile and marginal enterprise risk management.

Aldagi’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which is assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). The company is expected to demonstrate continued resilience in its balance sheet strength supported by solid operating results, along with prudent capital and underwriting management. Aldagi’s balance sheet strength assessment also considers its liquid investment portfolio and moderate dependence on reinsurance, with counterparty credit risk reduced through its use of reinsurers with high financial strength. Offsetting factors include the company’s onerous dividend policy, which limits its internal capital generation, as well as Aldagi’s exposure to the moderate political risk and high economic and financial system risks in Georgia. Furthermore, the risk of material capital extractions due to Aldagi’s association with its ultimate parent, Georgia Capital PLC, is considered low as the latter has improved its financial stability in recent years.

Aldagi has a track record of strong operating performance and, in 2025, generated a return-on-equity ratio of 35.6% (as calculated by AM Best). Underwriting results have benefited from Aldagi’s prudent approach to risk selection and focus on profitability over top-line growth. In 2025, the company reported insurance service results of GEL 54.8 million (2024: GEL 47.1 million). Aldagi’s net investment returns contribute positively to its earnings but have been volatile over recent years.

Aldagi is one of the largest insurance companies in Georgia, with a market share of approximately 17%, based on 2025 market premiums. The company benefits from its strong brand and multichannel distribution network. Aldagi’s business profile is constrained by its geographic concentration to Georgia, and the relatively small size of its portfolio by international standards. The company reported insurance revenue of GEL 228.5 million (USD 86.8 million) in 2025. Aldagi’s top line is expected to grow moderately in the medium term as the company develops its facultative reinsurance business domestically and in regional foreign markets.

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.

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