"Kommesk-Өмір" is included in the TOP-5 insurance companies based on the rating of insurance companies operating in the general insurance industry.
The ratings reflect the strong balance component of the company as well as its moderate operational indicators, business profile and average level of the risk management system, typical of the insurance market of Kazakhstan in general.
A.M. Best remarks upon the high capitalization level of Kommesk-Omir, adjusted with regard to risks, and availability of stable re-insurance protection, provided by a panel of high-rated international re-insurers. According to estimates, the company"s balance will remain at a high level in the medium term, despite the presence of credit risks in the investment portfolio, largely related to the limited access of Kazakh insurers to high-rated financial instruments.
The company"s operating activities in the past five years demonstrates good profit, generated mostly due to investment income. The underwriting result remains negative so far due to the high operating expenses typical of companies that operate in the retail sector as a result of the high cost of maintaining distribution channels.
The company"s business profile reflects its position in the market. The excessive level of competition and low level of penetration of insurance limit the opportunities of insurers regarding diversification of the insurance portfolio, resulting in a high share of mandatory insurance classes within the volume of net insurance premiums.
The company"s risk management level is characterized by A.M. Best as good for the Kazakh market; however, in general, the agency points out that risk management systems on the Kazakh market are of regulatory origin, and so far fall behind international practices.
The stable forecast of ratings reflects the company"s medium-term prospects; A.M. Best expects that the capitalization level will remain high, while the improvement of operating performance and development of the business profile will have a positive impact with regard to the moderate economic risks of Kazakhstan.
NOTE: JSC IC Kommerk-Omir was incorporated on November 19, 1991, the first insurance company of independent Kazakhstan. It holds first ever issued licenses for the right to perform insurance activities in the area of general insurance of compulsory and voluntary varieties, as well as reinsurance operations. Seventeen regional subdivisions are found in large-scale administrative centers of Kazakhstan. Since June 2007, shares of JSC IC Kommesk-Omir have been listed on the JSC Kazakhstan Stock Exchange. The company is a member of the JSC Insurance Payment Guarantee Fund and the Union of Legal Entities Kazakhstan Insurers Association.
As of April 1, 2018, assets of JSC IC Kommesk-Omir exceeded 17 billion tenge, insurance reserves – 7.4 billion tenge, shareholders" equity – 7.9 billion tenge.