Fitch Confirms INSON Insurance IFS Rating at "B"

Tashkent, Uzbekistan (UzDaily.com) — International rating agency Fitch Ratings has affirmed the Insurer Financial Strength (IFS) rating of Uzbek insurer INSON JSIC at "B" with a stable outlook.

The rating reflects the company’s limited scale, weak capitalization, and moderate financial performance. Fitch notes that INSON is moderately competitive in Uzbekistan’s insurance market, maintaining an adequate client base and reasonable diversification, but holding only 2.7% market share by net premiums for the first nine months of 2025, with low operational efficiency. The company’s aggressive expansion strategy also heightens business risk.

According to Fitch, INSON’s capitalization under the Global Prism model remained weak at the end of 2024 and continued at a weak level by the end of 2025, despite additional capital injections. The regulatory solvency margin was 108%, indicating that the company may continue relying on shareholder support to meet regulatory requirements.

Return on equity (ROE) under IFRS stood at 1% in 2024, rising to 6% in 2025 according to regulatory data, though the figure was distorted by one-off income. Fitch highlights potential profitability gains through increased insurance sales via online channels amid ongoing IT investments.

Investment risks are high, primarily due to large subrogation claims amounting to roughly 50% of capital, which may not be fully recoverable. Risky assets decreased to 11% of capital by the end of 2025, with the majority of the portfolio held in liquid funds in local banks rated "B"–"BB".

The company uses reinsurance sparingly, resulting in a high net-to-gross premium ratio. The reinsurance pool is diversified, including local and international insurers with strong ratings.

Fitch notes that a downgrade could occur if there is a significant, sustained reduction in capital, while an upgrade would require expansion of business scale, improved capitalization, enhanced asset quality, and lower business risk.