LONDON–(BUSINESS WIRE)–AM Best has assigned a Financial Strength Rating of B (Fair) and a Long-Term Issuer Credit Rating of “bb+” (Fair) to Insurance Company Alatau City Garant JSC (Alatau) (Kazakhstan). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect Alatau’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and marginal enterprise risk management.
Alatau’s balance sheet strength is underpinned by risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). The company’s capital base provides a buffer to withstand potential volatility emanating from its underwriting activities as well as its exposure to the risk of catastrophe losses. Furthermore, the assessment reflects the company’s relatively conservative investment allocation and good level of liquidity. An offsetting factor is Alatau’s exposure to high levels of economic and financial system risks associated with Kazakhstan, where the company is domiciled and holds a large majority of its assets.
Alatau’s operating performance assessment of adequate is supported by a track record of positive overall profitability. The company achieved a return of equity of 5.6% in 2025 (2024: 0.3%), which corresponded to a net profit of KZT 2.3 billion (approximately USD 5.6 million) (KZT 0.1 billion in 2024). Alatau’s technical results have been subject to volatility in part due to the company’s frequently changing underwriting strategy. The company generated a net-net combined ratio of 101.1% in 2025 (2024: 126.5%) (as calculated by AM Best); however, technical losses were offset by robust investment income, resulting from the high interest-rate environment in Kazakhstan.
Alatau’s business profile is supportive of a limited assessment. The company is a midtier player in the Kazakhstan non-life insurance market and reported insurance revenue of KZT 37.6 billion in 2025 (approximately USD 75.1 million). While Alatau’s business portfolio is subject to geographical and product concentrations, the company has undertaken steps to improve its product mix. Alatau’s top line is expected to grow in the medium term as the company expands its inward reinsurance business. AM Best will monitor the execution of the company’s strategy.
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