ACRA has assigned the "Rating under revision: developing" status for the credit rating of SOCIETE GENERALE Strakhovanie LLC (the Company) in view of certain changes in the Company's shareholder structure. The Company is currently part of the international financial group Societe Generale (the Group). On April 11, 2022, the Group announced its intention to sell its stake in the Russian insurance business to Interros. The deal is expected to be closed after relevant regulatory authorities grant their approval.
The Company's credit rating is based on the very high likelihood of extraordinary support from a parent entity with a high creditworthiness. The Company also has a fairly high standalone creditworthiness assessment (SCA), as well as moderate business profile, strong financial profile and adequate management quality assessments.
The Company offers insurance services to individuals, including mortgage insurance, property insurance, and financial risk insurance, as well as disability and healthcare insurance. The Company operates under the ROSBANK Insurance brand.
POTENTIAL OUTLOOK OR RATING CHANGE FACTORS
The "Rating under revision: developing" status indicates a variety of trends: the rating may stay unchanged or be downgraded.
Removal of the "Rating under revision: developing" status and affirmation of the credit rating may be prompted by:
- An assessment of support from the new beneficiary at the level high enough to affirm the rating.
Removal of the "Rating under revision: developing" status and downgrade of the credit rating may be prompted by:
- A downgrade in the assessment of support from the new beneficiary.
RATING COMPONENTS
Standalone creditworthiness assessment (SCA): a.
Support: the rating assigned earlier reflected a very high likelihood of extraordinary support, if needed, from the Group in the form of equity and/or liquidity. Given the support, the Company's credit rating was AAA(RU).
ISSUE RATINGS
There are no outstanding issues.
REGULATORY DISCLOSURE
The credit rating was assigned under the national scale for the Russian Federation based on the Methodology for Credit Ratings Assignment to Insurance Companies under the National Scale for the Russian Federation, the Methodology for Analyzing Rated Entities Associated with a State or a Group, and the Key Concepts Used by the Analytical Credit Rating Agency within the Scope of Its Rating Activities.
The credit rating was assigned to SOCIETE GENERALE Strakhovanie LLC for the first time on March 11, 2022. The credit rating and its outlook are expected to be revised no later than March 11, 2023.
The credit rating was assigned based on the data provided by SOCIETE GENERALE Strakhovanie LLC, information from publicly available sources, and ACRA’s own databases. The rating analysis was performed using the ISAS financial statements of SOCIETE GENERALE Strakhovanie LLC. The credit rating is solicited, and SOCIETE GENERALE Strakhovanie LLC participated in its assignment.
In assigning the credit rating, ACRA used only information, the quality and reliability of which was, in ACRA's opinion, appropriate and sufficient to apply the methodologies.
ACRA provided no ancillary services to SOCIETE GENERALE Strakhovanie LLC. No conflicts of interest were identified in the course of credit rating assignment.
