Moody's upgrades ratings of 11 Uzbek insurers following sovereign upgrade

Tashkent, Uzbekistan (UzDaily.uz) — Moody's Ratings has taken positive rating actions on eleven Uzbekistani insurance companies. The decision follows the upgrade of the Government of Uzbekistan's issuer rating from Ba3 to Ba2 on 25 June 2026, alongside a outlook change from positive to stable.

The agency upgraded the Insurance Financial Strength Ratings (IFSR) of the following companies:

Uzbekinvest: Local currency IFSR upgraded to Ba1 from Ba2, foreign currency IFSR to Ba2 from Ba3; Baseline Credit Assessment (BCA) raised to ba1 from ba2; outlook changed to stable.

Uzagrosugurta: IFSR upgraded to Ba2 from Ba3; BCA raised to b1 from b2; outlook changed to stable.

Mosaic Insurance Group (MIG): IFSR upgraded to Ba3 from B1; outlook changed to positive.

Quantum Insurance: IFSR upgraded to Ba3 from B1; outlook remains stable.

Euroasia Insurance: IFSR upgraded to B1 from B2; outlook remains positive.

Kafil and Alskom: IFSR for both companies upgraded to B1 from B2; outlooks remain stable.

Impex Insurance and Neo Insurance: IFSR for both companies upgraded to B2 from B3; outlooks remain positive.

My Insurance: IFSR affirmed at B2; outlook remains stable.

Alfa Invest: IFSR affirmed at B2; outlook changed from negative to stable.

Rationale Behind the Rating Actions

The rating agency's actions reflect three main driving factors: a re-evaluation of the operating environment across the Uzbekistani insurance market due to improved institutional frameworks and economic prospects; an upgrade in the credit quality of the government and local commercial banks, positively impacting insurers' asset quality; and specific corporate indicators unique to individual companies.

Improvements in the operating environment are underpinned by economic diversification, steady GDP growth, decelerating inflation, and ongoing financial sector reforms. Elevated interest rates continue to bolster investment yields for insurers, whose portfolios consist primarily of bank deposits. However, the relatively low penetration rate of insurance across Uzbekistan by global standards remains a limiting factor on the overall market assessment.

Corporate Performance Highlights

Uzbekinvest: The company's credit profile exceeds the sovereign rating ceiling due to a substantial portfolio of high-quality foreign assets — mostly investment-grade, USD-denominated debt securities held through its British subsidiary — and a major share of international reinsurance business, which comprised about 50% of total premiums in 2025. In 2025, the company reported a net profit of 55 billion soums, up from 45 billion soums the previous year.

Uzagrosugurta: The rating upgrade incorporates a two-notch uplift above its standalone credit assessment, reflecting its 99.6% state ownership structure and systemic importance to the national agricultural sector. Its net profit for 2025 climbed to 14.1 billion soums, compared to 4.6 billion soums recorded in 2024.

Mosaic Insurance Group (MIG): The positive outlook reflects expectations that international reinsurance segments will sustain growth over the next 12 to 18 months. Net profit rose to 37 billion soums in 2025 from 9 billion soums in 2024, with its solvency ratio reaching 244% as of the first quarter of 2026.

Quantum Insurance: The company's upgrade is anchored by conservative underwriting policies and a record net profit of 24 billion soums in 2025, maintaining a combined ratio consistently below 100%.

Euroasia Insurance: An influx of incoming international reinsurance business pushed the return on average equity to 20% in 2025, rebounding from negative 1% in 2024.

Kafil: Occupying a 3% market share in Uzbekistan, the company posted a net profit of 18.7 billion soums in 2025, supported by improved asset quality and strong capital adequacy across its retail and commercial branches.

Alskom: Distribution channels remain strong through corporate affiliations with state-controlled Uzbektelecom and Aloqabank. Net profit grew to 16.2 billion soums, heavily supported by investment income despite modest core underwriting profitability.

Impex Insurance: Capital injections doubled the company's investment portfolio size over 2025, delivering a return on average equity of 15%.

Neo Insurance: The company has concluded its main investment phase, moving to a profitable 9 billion soums in 2025 after a 1 billion soum loss in 2024. Gross written premiums expanded to 130 billion soums from 75 billion soums, proving successful as a digital retail insurer.

My Insurance: Ratings were affirmed at B2 as macroeconomic benefits were offset by rapid premium growth (90% in 2025), heavy exposure to credit insurance (over 80% of its portfolio), and low underwriting profitability.

Alfa Invest: The company maintained its 7th place ranking in gross premiums with a consolidated net profit of 56 billion soums in 2025. Ratings are constrained by a high group leverage ratio of 47% stemming from commercial bank loans used to acquire hotel business lines.