AM Best has lowered and then withdrawn its credit ratings on Trust Insurance JSC, citing pressure on capital adequacy and risk controls at the Uzbekistan-based non-life insurer.

The agency downgraded Trust Insurance’s Financial Strength Rating to C- (Weak) from C+ (Marginal) and its Long-Term Issuer Credit Rating to “ccc-” (Weak) from “b-” (Marginal). The outlook on the ratings was stable at the time of the action. The ratings were subsequently withdrawn at the company’s request after it chose to cease participation in AM Best’s interactive rating process. AM Best said the ratings were based on an assessment of Trust Insurance’s balance sheet strength as weak, operating performance as adequate, business profile as limited, and enterprise risk management (ERM) as weak.

Capital position and governance under pressure

The downgrades followed a reassessment of Trust Insurance’s balance sheet strength, driven by a fall in risk‑adjusted capitalisation to a very weak level as at year-end 2024, as measured by Best’s Capital Adequacy Ratio (BCAR). According to AM Best, the deterioration reflected rapid premium expansion, a material increase in reported reserves, and high investment concentration. The agency said these factors also highlighted shortcomings in corporate governance practices. AM Best’s balance sheet view additionally considers constraints arising from the insurer’s asset quality. Investments are largely concentrated in Uzbekistan, exposing the balance sheet to what the agency characterises as elevated financial system risk in the domestic market.

Despite these pressures, AM Best expects Trust Insurance to build a track record of adequate operating performance as it executes its business plan. The company’s early start-up period was marked by pressured technical results, but it reported a positive underwriting outcome in 2024, with AM Best calculating a net combined ratio of 92%. The agency expects Trust Insurance to pursue earnings growth and maintain positive technical profitability over the insurance cycle, while noting execution risk around the planned scale-up.

Trust Insurance remains a relatively recent entrant in Uzbekistan’s non-life market. It wrote gross premiums of about UZS 150 billion (around US$12 million) in 2024 and has a high geographic concentration, with business sourced predominantly in its home market. AM Best’s weak ERM assessment reflects risk management that is still in the early stages of development and not yet aligned with the company’s risk profile.

Uzbekinvest ratings affirmed with strong capital assessment

Separately, AM Best, in May 2025, affirmed its ratings on Uzbekinvest Export-Import Insurance Company, JSC (Uzbekinvest), another insurer operating in Uzbekistan’s market. The agency maintained Uzbekinvest’s Financial Strength Rating at B (Fair) and its Long-Term Issuer Credit Rating at “bb” (Fair), both with a stable outlook. The ratings reflect balance sheet strength that AM Best assesses as very strong, together with marginal operating performance, a limited business profile, and marginal ERM.

Uzbekinvest’s capital position is supported by risk‑adjusted capitalisation at the strongest level on BCAR. AM Best expects its BCAR scores to remain above the minimum required for the strongest category, providing capacity to absorb potential shock losses. According to AM Best, Uzbekinvest holds roughly half of its portfolio in bonds and other fixed income securities outside Uzbekistan, which the agency assesses as being of high credit quality. AM Best also noted that Uzbekinvest’s estimation of probable maximum loss is now supported by third‑party analysis. The agency expects the company to continue developing its capital management framework and its integration into strategic decision-making, which it currently views as limited.

Profitability trends and portfolio reshaping

Uzbekinvest’s marginal operating performance assessment reflects a history of elevated combined ratios prior to 2023, influenced in part by a high expense base. Under IFRS 17, the company reported a net-net combined ratio of 85% in 2023, according to AM Best’s calculations, reflecting changes in underwriting results, scale, and the transition to the new accounting standard. AM Best has indicated that the sustainability of these results remains to be demonstrated.

For 2024, Uzbekinvest’s loss ratio is expected to be supported by the withdrawal of certain loss‑making international accounts, while the expense ratio is projected to remain high. The company has been reshaping its portfolio over recent years, with inward reinsurance growing to more than 60% of gross written premium in 2024. Although much of this business is written outside Uzbekistan, Uzbekinvest has been reducing its foreign book in response to risks associated with international reinsurance markets and is shifting its strategic focus toward reinsuring domestic risks. Uzbekinvest is majority owned by the State Assets Management Agency of the Republic of Uzbekistan. AM Best does not apply uplift or drag from state ownership, noting the company’s relative operational independence in its rating analysis.

Market developments relevant to Asian counterparties

These rating actions sit against a backdrop of expansion in Uzbekistan’s insurance sector. Data from the National Committee of Statistics cited by UZ Daily show that total insurance services in the country reached 10.9 trillion soums between January and November 2025, an increase of 2.9 trillion soums over the same period in 2024. Non-life lines account for most of the market, with accident, motor and other transport, cargo and property, and other non-life products together representing 81.7% of total insurance services. Reinsurance services accounted for 14.1%, while life insurance contributed 4.2%. AM Best’s contrasting views on Trust Insurance and Uzbekinvest, together with the market’s growth pattern and product mix, outline the combination of capital, concentration, and risk‑management factors to consider when evaluating exposures and partnerships in Uzbekistan.