The ratings reflect Kommesk’s balance sheet strength, which AM Best assesses as strong, as well as its marginal operating performance, very limited business profile and marginal enterprise risk management.
Kommesk’s balance sheet strength is underpinned by its risk-adjusted capitalisation at the strongest level, as measured by the Best’s Capital Adequacy Ratio (BCAR). AM Best expects risk-adjusted capitalisation to remain at the strongest level supported by positive operating results and the absence of dividend payments, as it executes is strategic business plan. In addition, Kommesk’s balance sheet strength considers the company’s comprehensive reinsurance programme, which is backed by a panel of reinsurers of sound financial strength. Offsetting rating factors include the relatively low credit quality of the company’s investment portfolio and its exposure to high financial system risk in Kazakhstan.