AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” (Good) of the Joint-Stock Company Subsidiary of Halyk Bank of Kazakhstan Halyk Insurance Company (Halyk Insurance) (Kazakhstan). The outlook of these Credit Ratings (ratings) is stable.

These 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).

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 conservative 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 large 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 absence of catastrophe retrocession protection for the international book of business and 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 2024, with the company reporting a net-net combined ratio of 94.2%, compared with 94.0% in 2023 (both based on IFRS 17), 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 and globally, as well as the favourable foreign currency exchange rate fluctuations.

Halyk Insurance is a leading insurer in the Kazakhstan non-life market, ranking second as measured by gross written premium in 2024. The company has been enhancing its profile through increased geographical diversification as it follows a strategy of expanding its domestic and international inwards reinsurance business. AM Best will continue to monitor how the company’s ERM develops given its increased risk exposures due to the growing share of its inwards reinsurance book.

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 © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250401485109/en/

Todor Kitin, ACA
Senior Financial Analyst
+44 20 7397 0335
todor.kitin@ambest.com

Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
christopher.sharkey@ambest.com

Valeria Ermakova
Associate Director, Analytics
+44 20 7397 0269
valeria.ermakova@ambest.com

Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
al.slavin@ambest.com

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