Fitch raised Euroins Insurance Group rating outlook

The leading rating agency Fitch Ratings has upgraded to "stable" the outlook of Euroins Insurance Group (EIG), insurance division of the largest public holding in Bulgaria - Eurohold.

In a statement, published on 14 November, Fitch affirmed its assessment on EIG’s Insurer Financial Strength Ratings - B+, changing the outlook to "stable". The new stable perspective reflects the stabilization in reserve development and the expectation of improvement in the assessment of the specific business model of the Group, noted Fitch.

The agency pointed out that EIG’s reserve adequacy has improved during the first half of 2022 and expect a new increase by end of the year. Also, Fitch valued the partnership with the European Bank for Reconstruction and Development (EBRD), which acquired a minority stake in EIG, providing €42 million to increase the company's capital and support future growth.

In June Fitch raised from "negative" to "stable" the outlook for long-term credit rating of Eurohold Bulgaria, the majority owner of EIG, maintaining a "B" rating. The new outlook reflected the purchase of CEZ's assets in Bulgaria after which Eurohold focused its core business on energy and insurance, selling its car leasing and sales business.

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