EU Commission Preparing Letter to Georgia Threatening Visa Liberalization Suspension – Rikard Jozwiak

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.The rating upgrades reflect AM Best’s expectation that Aldagi will demonstrate continued resilience in its balance sheet strength and maintain its risk-adjusted capitalisation comfortably at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), supported by prudent capital and underwriting management. Furthermore, the risk of material capital extractions due to Aldagi’s association with its ultimate parent, Georgia Capital PLC, has been substantially reduced as the latter has improved its financial stability.Aldagi’s assessment also considers its liquid investment portfolio and moderate dependence on reinsurance, with counterparty credit risk reduced through its use of reinsurers high financial strength. Offsetting factors include the company’s onerous dividend policy, which limits its internal capital generation, as well as Aldagi’s exposure to the moderate political and high economic, as well as financial system risks in Georgia.Aldagi has a track record of strong operating performance and, in 2024, generated a return-on-equity ratio of 30.8% and a net-net non-life combined ratio of 91.1% (both as calculated by AM Best). Underwriting results have benefited from Aldagi’s prudent approach to risk selection and focus on profitability over top-line growth. In 2024, the company reported insurance service results of GEL 47.7 million (approximately USD 17.0 million) (2023: GEL 37.7 million, approximately USD 13.4 million). Aldagi’s net investment returns contribute positively to its operating profitability, but have been somewhat volatile over 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 one of the largest insurance companies in Georgia, with a market share of approximately 17%, based on 2024 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 its geographical concentration and the small size of its portfolio by international standards. In 2024, the company reported insurance revenue of GEL 200.9 million (approximately USD 71.1 million). Aldagi’s top line is expected to grow moderately in the medium term as the company develops its facultative reinsurance business domestically and in regional foreign markets.

1752496858

According to the document, the value of exports increased by 13.7% to USD 3,234.2 million, while imports increased by 12.4% to USD 8,699.3 million.equaled USD 5,465.1 million and its share in trade turnover constituted 45.8%.

1752495558

Lion Finance Group (BGEO LN) shares closed at GBP 71.20/share (+1.93% w/w and +5.87% m/m). More than 192k shares traded in the range of GBP 69.70 - 72.20/share. Average daily traded volume was 47k in the last 4 weeks. The volume of BGEO shares traded was at 0.43% of its capitalization.TBC Bank Group (TBCG LN) closed the week at GBP 49.00/share (+2.30% w/w and +8.65% m/m). More than 334k shares changed hands in the range of GBP 46.95 - 49.30/share. Average daily traded volume was 64k in the last 4 weeks. The volume of TBCG shares traded was at 0.59% of its capitalization.Georgia Capital (CGEO LN) shares closed at GBP 20.30/share (+0.25% w/w and +8.56% m/m). More than 274k shares traded in the range of GBP 20.00 - 20.60/share. Average daily traded volume was 51k in the last 4 weeks. The volume of CGEO shares traded was at 0.69% of its capitalization. 

1752495467

The service will be available to customers soon.The service is being introduced for the first time in Georgia and an individual will be given the opportunity to instantly transfer money between the listed Georgian banks using only a mobile phone number, in GEL, EUR and USD. Transfers can be made during the day, with unlimited frequency.“The innovation is an important step towards improving the customer experience. I am pleased and believe that this is an important stage in the digital transformation of the country's financial infrastructure. In order for as many customers as possible to benefit from this innovation, it is necessary to involve other banks in the process,” said Archil Gachechiladze, General Director of the Bank of Georgia.

1752220004

According to the National Bank of Georgia, as of June (01.06.2025), more than 8% of loans issued to cafe-restaurants are problematic, in USD and within 7% in Euros.Out of the 213 million GEL (equivalent in dollars) issued by banks to cafe-restaurants and fast food outlets in USD, 16.5 million are problematic. In Euros, 7% - 20.3 million GEL (equivalent in foreign currency).As of June (01.06.2025), the total volume of hotel-restaurant lending is 1.79 billion GEL. Of this, up to 1.3 billion GEL were issued in foreign currency (01.06.2024 - 1.9 billion, 1.4 billion, respectively)Restaurant owners complain about a decrease in customers and are having difficulty maintaining their business due to increased costs. It is unusually passive for the tourist season and they have no idea what to expect, how they will survive in the winter.Problem loans in foreign currency (catering facilities)

1752219882

According to NBG, the procedure aims to assess whether the proposed concentration is compatible with Georgia’s competitive banking environment.“Both entities operate in the banking sector, and the National Bank is reviewing the potential impact of this concentration on market competition,” the statement reads.The public and interested parties are invited to submit opinions or feedback on the potential acquisition by July 23, 2025, either by mail to 1 Zviad Gamsakhurdia Embankment, Tbilisi, or via email at info@nbg.gov.ge.

1752219707

The change was made through its subsidiary and controlled company, FIL Investments International.Share performance dynamics:

1752152977

Violation of the AML/CFT reporting requirement (anti-money laundering and counter-terrorist financing risk supervision reports) in all four cases is the failure to submit a report, which is sanctioned by 3,000 GEL, the RPGP is 3 and the 4th subject is subject to a fine of 6,000 GEL for repeated submission. Accordingly, the total amount of fines is GEL 15,000.All four are currency exchange booths.

1752152725