AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” (Good) of AzRe Reinsurance, OJSC (AzRe) (Azerbaijan). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect AzRe’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and marginal enterprise risk management (ERM).

AzRe’s balance sheet strength is underpinned by its consolidated risk-adjusted capitalisation, consistently maintained comfortably above the minimum level required for the strongest assessment, as measured by Best’s Capital Adequacy Ratio (BCAR). The company continued to reduce its investment concentration in Azerbaijan by shifting its portfolio toward foreign fixed income securities, which accounted for 42% of total invested assets at the end of August 2025. A partially offsetting rating factor is the limited catastrophe retrocession cover in place on AzRe’s expanding international portfolio, though this business is well-diversified geographically.

AzRe has a consistent track record of strong operating performance. In 2024, the company reported a robust combined ratio (net-net) of 65.5% (2023: 63.6%) (as calculated by AM Best). Total earnings are supported by strong investment returns, reflective of the high-interest rate environment prevailing in Azerbaijan. AM Best expects the company’s operating performance to remain strong over the medium term, supported by good product diversification, albeit subject to potential volatility due to its exposure to large risks.

AzRe maintains one of the leading positions in its domestic reinsurance market. However, the company is a relatively small reinsurer by international standards. AzRe has taken steps to expand its offering in foreign markets, where it has the potential to benefit from increasing reinsurance premium rates, but also faces intense competition from players with more established profiles.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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