Skip to main content

AM Best Affirms Credit Ratings of Halyk-Life, JSC

AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” (Good) of Halyk-Life, Life Insurance Subsidiary Company of the Halyk Bank of Kazakhstan, JSC (Halyk-Life) (Kazakhstan). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Halyk-Life’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.

Halyk-Life’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which is assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). BCAR scores were comfortably above the minimum required for the strongest assessment at year-end 2022, based on audited IFRS financial statements. These are expected to remain at this level prospectively, supported by solid operating results and a dividend policy that allows for sufficient earnings retention to support the company’s growth plans. Halyk-Life’s investment portfolio is relatively conservative by asset class, with fixed-income securities, cash and bank deposits accounting for approximately 90% of its investment portfolio. The ratings also factor in Halyk-Life’s exposure to high levels of economic, political and financial system risks associated with Kazakhstan, where the company is domiciled, as well as sources most of its business and holds a large majority of its assets.

Halyk-Life has reported improved operating performance in recent years, largely driven by lower commission rates in its bancassurance portfolio. In 2022, the company reported a return-on-equity of 35.6% (2021: 21.8%), which should be considered in the context of the high inflationary environment in Kazakhstan. AM Best expects Halyk-Life to maintain strong operating profitability prospectively.

Halyk-Life is a leading insurer in Kazakhstan’s life insurance market, with the largest estimated market share, based on 2023 preliminary gross written premium. However, Halyk-Life’s operations are limited to its domestic insurance market, which is small by international standards. Over the recent years, the company has become less dependent on third-party distribution channels, given its ability to leverage the relationship with its parent, Halyk Bank.

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.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

Copyright © 2024 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


Data & News supplied by
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.