Fitch Ratings has affirmed Belarusian National Reinsurance Organization’s (Belarus Re) Insurer Financial Strength (IFS) Rating at ‘B’. The Outlook is Stable, BelTA learned from the agency.
“The rating reflects Belarus Re’s exclusive position in the local reinsurance sector underpinned by legislation, good capitalization and sustainable earnings generation. These rating drivers are however partially offset by the weak quality of the reinsurer’s investment portfolio,” the agency said.
The Belarusian state has established strong support for Belarus Re in its legal framework, in its aim to develop a well-functioning reinsurance system. Fitch believes that the government could support Belarus Re over other state-owned companies, because of its small size and systemic importance to the financial sector, Fitch noted.
A change in Belarus’ Local-Currency Long-Term Issuer Default Rating (IDR) is likely to lead to a corresponding change in the Belarus Re’s IFS Rating.
