Tashkent, Uzbekistan (UzDaily.com) -- S&P Global Ratings assigned the insurance company APEX LIFE INSURANCE (APEX LIFE) a financial stability rating of the insurance company at the level of “B+”, with a rating change forecast of “Stable”.

APEX LIFE’s rating largely reflects its close integration into the APEX INSURANCE group, associated reputational factors and importance to the implementation of the group’s business development strategy for the period 2024-2026.

Receiving support from the group when necessary is expected to have a positive impact on APEX LIFE’s operations in all foreseeable circumstances.

In this regard, the long-term credit rating of APEX LIFE is equal to the “b+” group credit profile (GCP) of APEX INSURANCE.
APEX LIFE was established in May 2019 as a 100% subsidiary of APEX INSURANCE, one of the largest companies in the general insurance segment in Uzbekistan with a market share of about 26% of written net insurance premium in 2023 in the domestic insurance market.

Although the life insurance company represents only a small part of the group in terms of assets (4%) and capital (12%), it plays an important role in implementing the APEX INSURANCE business strategy and increasing joint cross-selling volume. This involves a significant improvement in the customer experience, as well as contributing to the diversification and growth of the group by offering life insurance products and services to individuals.

APEX LIFE is closely integrated into the APEX INSURANCE group both in terms of operational activities and in the areas of strategic development and financial management. The Company maintains similar underwriting and claims handling practices as its parent. The Board of Directors of APEX INSURANCE controls the investment policies and risk management practices of the subsidiary. APEX INSURANCE uses

APEX LIFE, as a platform for the retail sale of insurance policies, also operates under the same brand as the group, which underlines its connection with the reputation of APEX INSURANCE. APEX LIFE therefore plays a key role in the group’s structure.

The Agency expects that, if necessary, the parent company will provide financial support to APEX LIFE. The Company received additional capital support in 2023 and 2022 to support its growth and development strategy.

The Stable Outlook for APEX LIFE mirrors that of APEX INSURANCE and means that APEX LIFE’s significance to its parent will remain unchanged over the next 12 months. APEX LIFE’s rating will change in accordance with the rating of the parent organization, with the exception of cases of revision of the status of the insurance company within the group.

The agency may make a negative rating decision on APEX LIFE in the next 12 months if the agency observes pressure on its parent’s rating. In addition, a negative decision on the insurer’s rating may be made if group support, including the provision of capital, weakens, which may require a review of the company’s status within the group.

It is possible that a positive rating decision may be made regarding APEX LIFE in the next 12 months if a similar decision is made on the APEX INSURANCE rating.

Corporate governance factors have a negative impact on the credit rating of APEX LIFE, as well as on other insurance companies in Uzbekistan. This is due, first of all, to the agency’s assessment of corporate governance practices in the country. The agency notes that the institutional system in Uzbekistan is still not as developed as in some other developing and developed countries, as well as the low quality and lack of transparency of information. In the opinion of agency experts, these factors increase uncertainty in assessing the performance of insurance companies in Uzbekistan.