The global insurance rating agency AM Best has affirmed the financial strength rating of “AzRe Reinsurance” JSC at B++ (Good) and its long-term credit rating at “bbb” (Good), APA-Economics reports.
The outlook remains stable.
According to AM Best’s assessment, AzRe’s ratings reflect the company’s strong financial stability and robust operational results. Calculations indicate that the company’s capital level is well above the threshold required for the highest rating.
The company has reduced the share of domestic assets in its investment portfolio, directing more investments to foreign bonds, which, as of August 2025, accounted for 42% of its total investment assets. At the same time, the agency notes that AzRe’s expanding portfolio in foreign markets has limited additional protection (retrocession) against major catastrophe risks, and this factor partially negatively affects the rating.
The company also delivered strong results in 2024. The combined loss and expense ratio was 65.5%, indicating good operational performance. High interest rates increased investment income, supporting overall profitability. AM Best expects the company to achieve positive results in the coming years as well, but notes that major risks could create variability in outcomes.
The agency emphasizes that AzRe is one of the leading reinsurance companies in Azerbaijan, but is still a relatively small player in the international market. While operating in foreign markets opens new opportunities for the company, competition is stronger there with larger rivals.
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