Fitch revises "AzInsurance" OJSC's outlook to negative

Baku. 1 December. REPORT.AZ/ Fitch international rating company has revised "Azsığorta" (AzInsurance) OJSC's outlook from stable to negative. 

Report informs referring to the official website of the Fitch Ratings has affirmed company’s Insurer Financial Strength (IFS) Rating at 'B'.

The revision of the outlook reflects AzInsurance's weak business profile and low resilience to a difficult operating environment in Azerbaijan. The affirmation of the rating reflects AzInsurance's strong regulatory capital position.

According to Fitch Ratings, in third quarter of 2017 in response to the weaker economic environment, "Azsığorta" decided to launch a new business plan, intending to optimize its business processes, reduce its cost base and diversify its insurance product mix through product innovation. However, Fitch views this business strategy as challenging to implement successfully.

In Fitch's view, "AzInsurance" faces challenges in finding a stable market position and implementing the strategic steps that could make the company more resilient to the operating environment.

According to agency, in the third quarter of this year "AzInsurance" reported a net loss of AZN 4.8 million, which was driven by increased administrative expenses stemming from the restructuring.