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A3 ratings affirmed for Al-Ain Ahlia Insurance, outlook revised to stable

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The change in outlook to stable from negative follows Al-Ain Ahlia’s recovery of its regulatory solvency ratio.

Sunday 08, September 2019 BY KUDAKWASHE MUZORIWA

Moody’s has affirmed its A3 insurance financial strength rating (IFSR) of Al-Ain Ahlia Insurance (Al-Ain Ahlia) and revised the outlook to stable from negative.

The rating agency stated that the affirmation of Al-Ain Ahlia’s A3 ratings reflects the company’s strong market position and brand, as the fourth-largest player in the UAE insurance market in terms of premium in 2018.

Additionally, the rating is also a reflection of the good technical experience in the oil and gas business lines combined with good cooperation with major international reinsurers.

Al-Ain Ahlia has continued to report good profitability on a net basis in the first half of 2019 and reinsurance repayments for the large claim from Abu National Oil Company which occurred in 2017 have thus far been settled as planned by the company.

Moody’s said that the insurance company’s A3 rating reflects strong underwriting profitability with a five-year average combined ratio of 92.8 per cent in 2018.

In 2018, the insurance firm’s solvency ratio was in part negatively impacted by a significant increase in real estate exposure. Al-Ain Ahlia’s overall real estate exposure had increased to around 59 per cent of invested assets in H1 2018 from around 20 per cent the same period in 2017.

However as of H1 2019 the company managed to improve its regulatory solvency.

TAGS : Al-Ain Ahlia, ADNOC, Real estate, UAE insurance market, solvency ratio

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