{"id":250163,"date":"2022-01-20T09:52:58","date_gmt":"2022-01-20T09:52:58","guid":{"rendered":"https:\/\/armbanks.am\/2022\/01\/20\/250163\/"},"modified":"2022-01-20T09:52:58","modified_gmt":"2022-01-20T09:52:58","slug":"moodys-assigns-a-ba3-ifsr-to-export-insurance-agency-of-armenia-stable-outlook","status":"publish","type":"post","link":"https:\/\/armbanks.am\/en\/2022\/01\/20\/250163\/","title":{"rendered":"Moody\u2019s assigns a Ba3 IFSR to Export Insurance Agency of Armenia; stable outlook"},"content":{"rendered":"\n

YEREVAN, January 19, \/ARKA\/. <\/strong>Moody’s Investors Service (“Moody’s”) has today assigned Ba3 foreign and local-currency insurance financial strength ratings (IFSRs) to Export Insurance Agency of Armenia ICJSC (EIA). The outlook is stable.<\/p>\n\n\n\n

EIA’s Ba3 IFSRs reflect its b1 Baseline Credit Assessment (BCA), and moderate probability of support from the government of Armenia (Ba3 stable), resulting in a notch uplift above the BCA.<\/p>\n\n\n\n

The full list of the affected ratings can be found at the end of this press release.<\/p>\n\n\n\n

EIA is currently the only export insurance company in Armenia. It was established by the government to promote Armenian export within the framework of the export-oriented industrial policy of the republic of Armenia.<\/p>\n\n\n\n

EIA’s b1 BCA benefits from its solid capital adequacy relative to net total exposure with 90% of insurance risk reinsured by Swiss Reinsurance Company Ltd (Swiss Re, Aa3 stable), as well as sound financial flexibility and low financial leverage.<\/p>\n\n\n\n

At the same time, these strengths are tempered by the company’s modest size in global terms, low granularity of its insurance book and limited geographical diversification, investments in high-risk assets in Armenia and weak underwriting profitability.<\/p>\n\n\n\n

EIA provides export and pre-export credit insurance against political and commercial risks. Its share in GPW of credit insurance sector in Armenia (including loan insurance and other financial losses insurance) amounted to around 50% as of Q3 2021.<\/p>\n\n\n\n

The insurer’s diversification is constrained by its limited geographical and products diversification with some sizeable single-name exposure. It has concentrations of export exposure in Russia (Baa3 stable), given the structure of Armenia’s exports and long-standing relations with Russia.<\/p>\n\n\n\n

EIA’s asset-quality metrics reflect a high concentration of its investments in domestic assets, which mainly comprise current accounts and deposits with Armenia-based banks and investments in local bonds issued by the government of Armenia.<\/p>\n\n\n\n

The company’s high-risk investments, mainly deposits with local banks, accounted for around 138% of its equity as of 31 December 2020. -0-<\/p>\n","protected":false},"excerpt":{"rendered":"

YEREVAN, January 19, \/ARKA\/. Moody’s Investors Service (“Moody’s”) has today assigned Ba3 foreign and local-currency insurance financial strength ratings (IFSRs) to Export Insurance Agency of Armenia ICJSC (EIA). The outlook is stable.<\/p>\n","protected":false},"author":1,"featured_media":175182,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","tstyn_error":""},"categories":[12139,12149,9216],"tags":[15837,15891,15648],"class_list":{"0":"post-250163","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy-en","8":"category-insurance-market","9":"category-news","10":"tag-armenia-2","11":"tag-insurance-2","12":"tag-moodys-2"},"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts\/250163","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/comments?post=250163"}],"version-history":[{"count":0,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts\/250163\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/media\/175182"}],"wp:attachment":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/media?parent=250163"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/categories?post=250163"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/tags?post=250163"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}