S&P Global Ratings has placed ROSGOSSTRAKH's long-term issuer credit rating and financial strength rating at BB+ on the CreditWatch Negative list (under revision with negative expectations) in connection with the ongoing litigation, ASN reports.

This rating action reflects the risks of deterioration in the company's financial risk profile if it has to pay RUB 12.3 billion (~EUR 0.15 billion) in favor of KAPITAL LIFE insurance or create reserves for a significant part of this amount.

"As far as we understand, on December 7, 2021, ROSSGOSSTRAKH lost the case in the court of appeal on the claim of its former subsidiary KAPITAL LIFE Insurance related to an agency agreement concluded several years ago", the rating agency said in a statement.

As of October 31, 2021, the regulatory ratio of the company's solvency margin in accordance with the new regulation was 105% (minimum 100%). If ROSGOSSTRAKH pays a fine or reflects reserves in its financial statements that cover a significant part of the fine, the company may violate requirements for the minimum level of regulatory capital, S&P analysts believe.

At the end of the third quarter of 2021, ROSSGOSSTRAKH ranks 7th in the overall market ranking in terms of GWP volume.