On December 19, 2022, the international rating agency S&P Global Ratings announced an increase in the long-term issuer credit rating and financial strength rating of Freedom Finance Insurance (FFI) JSC from "B" to "B +" and the withdrawal of ratings from The FFI rating on the national scale has also changed from ""kzBBB-"" to ""kzBBB"". The outlook on the ratings is stable.
Positive changes in the rating occurred after the completion of the merger of IC London-Almaty JSC with IC Freedom Finance Insurance JSC, during which IC London-Almaty transferred all its balance sheet assets, liabilities and insurance portfolio to FFI and ceased to exist as a separate legal entity. According to the rating agency, the addition of IC London-Almaty will significantly strengthen FFI's position in the Kazakhstan general insurance market in terms of size, market share and business diversification.
The Stable Outlook reflects S&P Global Ratings' expectation that over the next 12 months FFI will be able to cope with the current adverse economic environment without compromising its competitive position and capitalization. The agency also considers its expectation that the quality of the insurance company's invested assets will remain robust.
S&P Global Ratings:
“The rating upgrade follows the completion of the accession of IC London-Almaty to FFI on December 19, 2022. And we believe that the strengthening of market positions and expansion of the presence in the domestic market, as well as an increase in the diversification of the insurance portfolio and an increase in the base of corporate clients, will have a positive impact on FFI performance. We estimate that FFI's consolidated market share will be around 4-5% of gross written insurance premiums in 2023 and will continue to grow thereafter. We believe this improved market position will help FFI compete with larger players, especially in voluntary auto insurance and corporate risk insurance, areas the company plans to develop. We also expect the combined company's projected total capital to be around US$26 million in 2023 and believe that FFI's capital adequacy is adequate to the risks taken into insurance. In our opinion, the insurance company plays an important role in the implementation of the group's long-term business development strategy, which involves its diversification within the holding."
Advisor to the Chairman of the Board of Freedom Insurance Azamat Kerimbayev:
“The accession of London-Almaty certainly plays an important role in the further development of IC Freedom Insurance. However, it is worth noting that thanks to the development and implementation of new digital technologies, the company has been a leader in online insurance since 2019.
In April 2022, the company was the first in Kazakhstan to introduce an CPLI auto insurance subscription, which is issued for a year and updated in a timely manner, if the client wishes to continue using the service. And in November 2022, Freedom Insurance launched a digital platform for online payments in case of an accident - dtp.kz. Now, with the help of the new service, Kazakhstani car owners in the event of an insured event can receive compensation in just 5 days without long red tape with documents and trips to the insurer's office. To do this, simply submit an application at the scene of an accident through a new service, and receive payment on the card.
Positive changes in the rating occurred after the completion of the merger of IC London-Almaty JSC with IC Freedom Finance Insurance JSC, during which IC London-Almaty transferred all its balance sheet assets, liabilities and insurance portfolio to FFI and ceased to exist as a separate legal entity. According to the rating agency, the addition of IC London-Almaty will significantly strengthen FFI's position in the Kazakhstan general insurance market in terms of size, market share and business diversification.
The Stable Outlook reflects S&P Global Ratings' expectation that over the next 12 months FFI will be able to cope with the current adverse economic environment without compromising its competitive position and capitalization. The agency also considers its expectation that the quality of the insurance company's invested assets will remain robust.
S&P Global Ratings:
“The rating upgrade follows the completion of the accession of IC London-Almaty to FFI on December 19, 2022. And we believe that the strengthening of market positions and expansion of the presence in the domestic market, as well as an increase in the diversification of the insurance portfolio and an increase in the base of corporate clients, will have a positive impact on FFI performance. We estimate that FFI's consolidated market share will be around 4-5% of gross written insurance premiums in 2023 and will continue to grow thereafter. We believe this improved market position will help FFI compete with larger players, especially in voluntary auto insurance and corporate risk insurance, areas the company plans to develop. We also expect the combined company's projected total capital to be around US$26 million in 2023 and believe that FFI's capital adequacy is adequate to the risks taken into insurance. In our opinion, the insurance company plays an important role in the implementation of the group's long-term business development strategy, which involves its diversification within the holding."
Advisor to the Chairman of the Board of Freedom Insurance Azamat Kerimbayev:
“The accession of London-Almaty certainly plays an important role in the further development of IC Freedom Insurance. However, it is worth noting that thanks to the development and implementation of new digital technologies, the company has been a leader in online insurance since 2019.
In April 2022, the company was the first in Kazakhstan to introduce an CPLI auto insurance subscription, which is issued for a year and updated in a timely manner, if the client wishes to continue using the service. And in November 2022, Freedom Insurance launched a digital platform for online payments in case of an accident - dtp.kz. Now, with the help of the new service, Kazakhstani car owners in the event of an insured event can receive compensation in just 5 days without long red tape with documents and trips to the insurer's office. To do this, simply submit an application at the scene of an accident through a new service, and receive payment on the card.
