Insurer rating classes

Class-categorized ratings explicit readings for the current financial health and quality of insurance and investment risk management applicable to appraised insurers. According to reliability level insurers are divided into four classes: A, B, C and D. Notably, the A, B and C classes are broken down into a number of sub-classes to provide a more nuanced picture of the given insurer’s solvency, financial sustainability and prospects for business expansion. Following a most thorough review, an insurer can be granted one of the following ratings (all classes and sub-classes being given in the order of diminishing credibility standings):

Class A

Class A++: Superior level of reliability

In the short run the insurer is most likely to have all of its current and unscheduled commitments appropriately satisfied. In the mid term the insurer would be rather likely to fulfill its obligations even under major negative shifts in macroeconomic and market indicators.

Class A+: High level of reliability

In the short run the insurer is most likely to have all of its current and unscheduled commitments appropriately satisfied. In the mid term the fulfillment of its obligations is rather high in case of stability of macroeconomic and market indicators.

Class A: High level of reliability

In the short run the insurer is most likely to have all of its current and unscheduled commitments appropriately satisfied. In the mid term the fulfillment of its obligations envisaging major payouts will rather depend on stability of macroeconomic and market indicators.

Class B

Class B++: Acceptable reliability level

In the short run the insurer is most likely to have all of its current and insignificant (mid-value) unscheduled commitments appropriately satisfied. The insurer is likely to experience some financial hardships whenever circumstances require that major one-off payouts have to be made. In the mid term the fulfillment of its obligations will rather depend on stability of macroeconomic and market indicators.

Class В+: Sufficient reliability level

In the short run the insurer is most likely to have all of its current and insignificant (mid-value) unscheduled commitments appropriately satisfied. With the current state of financial flows the insurer is likely to experience some financial hardships whenever circumstances require that major one-off payouts have to be made. In the mid term the fulfillment of its obligations will to a great extent depend on stability of macroeconomic and market indicators.

Class В: Satisfactory reliability level

In the short run the insurer is most likely to have nearly all of its current and insignificant (mid-value) unscheduled commitments appropriately satisfied. There's some possibility of default on its unscheduled commitments. In the mid term the fulfillment of its obligations will to a great extent depend on stability of macroeconomic and market indicators.

Class C++

Class С++: Low reliability level

The company appropriately satisfies nearly all of its current commitments, however the insurer is likely to experience some financial hardships whenever circumstances require that major payouts have to be made. There's quite significant probability of default on its unscheduled commitments. In the mid term there's a high probability of default in case of worsening of macroeconomic indicators and unfavorable shifts in the market situation.

Class С+: Extremely low reliability level

The company appropriately satisfies most of its current commitments, however the insurer is likely to experience some financial hardships whenever circumstances require that major and even mid-value payouts have to be made. There's extremely high possibility of default on its unscheduled commitments. In the mid term default is highly probable in case of worsening of macroeconomic indicators and unfavorable shifts in the market situation.

Class С: Unsatisfactory reliability level (near-default)

The company fails to satisfy its current commitments or there's quite significant probability of default on its unscheduled commitments even under favorable market conditions.

Class D

Class D: Technical default

The company fails to satisfy its current commitments to clients, partners, creditors and employees.

Class E

Class E: Bankruptcy. License recall or liquidation

Bankruptcy process is underway or the market regulator or any other authorized body is running liquidation of the company or has recalled its license.