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Fitch upgrades KAFOLAT Insurance’s IFS rating to BB-
Fitch cited stronger capital, including a 195% regulatory solvency ratio at end-1Q26, and noted the downgrade risk includes volatile earnings and FX losses.
Fitch Ratings upgraded the Insurer Financial Strength (IFS) rating of Uzbekistan-based non-life insurer KAFOLAT Insurance Company to ‘BB-‘ from ‘B+’, assigning a Stable Outlook.
In its rationale, Fitch pointed to a strengthened financial profile and improved capital position, alongside broader geographical diversification supported by inward reinsurance, after KAFOLAT reduced its US risk exposure in 2024 and 2025.
Fitch also cited prudent risk management, a conservative investment strategy, enhancements in reserving practices, and improvements in natural catastrophe risk modelling. It said KAFOLAT maintains a domestic footprint across property, liability, motor, health, and life insurance, with underwriting described as good.
The agency noted that earnings remain volatile, with 2025 return on equity falling to 14% from 64% in 2024 due to FX losses, underwriting volatility, and IFRS 17 costs. Fitch added that KAFOLAT posted a 74% combined ratio, and that its Prism score rose to ‘Strong’ in 2025, with a low net to gross leverage of 2.8x to 5.8x.