Ukraine's Justice Ministry has returned a resolution on the requirements for the financial strength rating of nonresident insurers and nonresident reinsurers to the State Commission for Regulating the Financial Services Markets.
According to an official report posted on the ministry’s Web site, the document should be finalized within a month.
The document was returned to the commission at its own request.
As reported, the commission’s resolution foresaw that the financial
strength rating of nonresident insurance companies and nonresident
reinsurance companies by the day of the conclusion of an agreement with
a Ukrainian company should be defined by international rating agencies
A.M.Best (the United States), Moody’s Investors Service (the United
States), Standard & Poor’s (the United States), and Fitch Ratings
(the United Kingdom). In addition, the rating should not be lower than
the credit rating of external long-term state liabilities of Ukraine
assigned by the listed rating agencies.
Moreover, the commission suggested that if the rating of a
nonresident insurer decreases when a corresponding agreement is in
effect, by the time the agreement expires, the insurer’s rating by the
date of concluding the agreement should be taken into consideration. In
the case of amending or prolonging the existing agreement, the
nonresident insurer’s rating assigned when the agreement was amended or
prolonged should be taken into consideration.
In addition, a nonresident insurance company’s financial strength
rating is recognized in Ukraine if it is published in international
rating agencies’ bulletins or posted on their Web sites.
