AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” (Good) of PASHA Insurance OJSC (PASHA Insurance) (Azerbaijan). The outlook of these Credit Ratings (ratings) is stable. PASHA Insurance is wholly owned by PASHA Holding LLC, a diversified investment holding group in Azerbaijan.

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

PASHA Insurance’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which is expected to remain at the strongest level in the medium term, as measured by Best’s Capital Adequacy Ratio (BCAR). This assessment is supported by the company’s conservative investment allocation with a good level of liquidity. Offsetting factors include the history of high dividend payout ratios, which limits PASHA Insurance’s internal capital generation, as well as the company’s exposure to the high economic and political risks in Azerbaijan, in addition to very high financial system risks there. The ratings also consider PASHA Insurance’s moderate reliance on reinsurance; however, the associated credit risk is mitigated partly by a reinsurance panel of excellent credit quality.

PASHA Insurance has a track record of strong operating results, evidenced by a net/net combined operating ratio of 89.6% and a return on equity of 41.6% in 2025 (87.5% and 46.1% in 2024, respectively). Investment results have supplemented earnings with an 8.7% investment yield in 2025 (2024: 8.8%).

PASHA Insurance’s business profile is supportive of its limited assessment. While the company is the market leader in the domestic non-life market, its profile is relatively small by international standards and subject to geographic and product concentrations. AM Best considers the company’s ERM to be appropriate relative to its risk profile. The company has undertaken steps in recent years to improve its governance framework through internal and external resources and has demonstrated that its ERM is integrated into its strategic decision-making.

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 www.ambest.com.

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