OREANDA-NEWS. January 26, 2011.  The international rating agency A.M. Best has upgraded financial strength rating  to B (Fair) from B- (Fair) and issuer credit rating to “bb” from “bb-“ of OJSC Transsiberian reinsurance corporation on 22nd December 2010. The outlook for both ratings is stable.

As it is stated in the official news release of A.M. Best agency the rating actions reflect Transsiberian Re’s improving risk-adjusted capitalization, good business position and Transsiberian Re’s good but declining underwriting performance. The main offsetting rating factors are weak enterprise risk management and ongoing investment volatility.

The expected in early 2011 completion of the increase of the chartered capital will allow Transsiberian Re, according to agency’s analysts, to improve its financial stability. However, according to A.M. Best, the further implementation of the regulatory requirements on financial stability will depend largely on internal sources – namely, on retained earnings.

Analysts of the rating agency believe that Corporation needs to improve risk management system and they state that in 2010 there were made significant steps in this direction. It is purchased the relevant software, and A.M. Best believes that this will significantly improve risk management.
The full text of the news release of A.M. Best agency can be found at the link:

http://www3.ambest.com/Frames/Frameserver.asp?site=press&Tab=1&altsrc=2&RefNum=65494654775346496656

Transsiberian Re is cooperating with the international rating agency A.M. Best from 2006. Corporation became the first Russian insurer, which received an international financial stability rating of this agency.