OREANDA-NEWS. February 2, 2009. The international Rating agency A.M. Best officially reported on 30 January, 2009 about the revision of the outlook to “positive” from “stable” and affirmed the financial strength rating of B- (Fair) and the issuer credit rating of bb- of OJSC Transsiberian Reinsurance Corporation. 

A.M. Best Agency notes good overall financial performance of Transsiberian Re in 2008 and insufficient, although improving, risk-adjusted capitalization of the company. The revision of the outlook from “stable” to “positive” is largely due to the increase of the chartered capital of the Corporation by 60 million rubles in 2008, which, according to A.M. Best analysts, is supportive of projected growth of around 3% to 5%. Any substantial growth in the short term beyond these limits will add severe strain to the company.  

According to A.M. Best calculations, underwriting performance of Transsiberian Re is likely to improve to around to 96 mln RUB in 2008, in comparison with 40.3 mln RUB in 2007, which is mainly as a result of lower loss ratio and increase in the retained business level of Transsiberian Re. The analysts are confident that in the nearest two years the combined ratio, which is one of the major indicators of the company’s efficiency, will be below 95%.

More detailed information about the affirmation of Transsiberian Re rating and revision of the outlook to “positive” can be found on site of A.M. Best in official press-release or translated into Russian, on corporate site of Transsiberian Re in “Ratings”.