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AM Best Assigns Credit Ratings to JSC Insurance Company Aldagi Group

AM Best has assigned a Financial Strength Rating of B (Fair) and a Long-Term Issuer Credit Rating of “bb+” (Fair) to JSC Insurance Company Aldagi Group (Aldagi) (Georgia). The outlook assigned to these Credit Ratings (ratings) is stable.

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

Aldagi’s balance sheet strength is underpinned by risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). The assessment also considers Aldagi’s liquid investment portfolio and moderate dependence on reinsurance, with its reinsurance panel consisting of international companies of high financial strength. Offsetting factors include the company’s limited internal capital generation, given its high dividend policy, as well as Aldagi’s exposure to the moderate political and high economic and financial system risks in Georgia.

Aldagi has a track record of strong operating performance, as demonstrated by a five-year (2018-2022) weighted average non-life combined ratio below 85% and return on equity of approximately 25% (as calculated by AM Best). Historically, underwriting results have benefitted from Aldagi’s prudent approach to risk selection and focus on profitability over top-line growth. In 2022, the company reported technical profits of GEL 19.6 million (approximately USD 7.4 million) (2021: GEL 17.1 million or USD 5.6 million). Aldagi’s net investment returns contribute positively to its operating profitability but have been volatile over the recent years owing to the high interest rate environment in Georgia and internationally, as well as movements in the fair value of invested assets.

Aldagi is the largest insurance company in Georgia, with a market share of approximately 27%, based on 2022 combined non-life and life market premiums. The company benefits from its strong brand and multichannel distribution network. Nevertheless, Aldagi’s business profile is constrained by geographical concentration and the small size of its portfolio by international standards. In 2022, the company reported gross written premium of GEL 139.1 million (approximately USD 52.3 million). Aldagi’s top line is expected to grow in the medium term as the company plans to participate in the compulsory motor third-party liability insurance pool in Georgia, as well as accept risks on reinsurance basis domestically and from regional foreign markets. AM Best will continue to monitor the progress of the company’s growth strategy.

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 © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


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