A.M. Best Downgrades Ratings of Abu Dhabi National Insurance Company PSC
The rating action reflects deterioration of ADNIC’s technical performance in 2014, which resulted in a material weakening of risk-adjusted capitalisation.
ADNIC reported a net loss of AED 280 million (
ADNIC’s poor operating performance in 2014 was the main driver behind the reduction in its capital and surplus to AED 1,634 million (
Upward rating movement is unlikely in the medium term. Downward rating actions could occur if management is unable to return the company to profitability in the medium term or if there is a further decline in its risk-adjusted capitalisation.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Key insurance criteria reports utilized:
- Catastrophe Analysis in A.M. Best Ratings
- Evaluating Country Risk
- Risk Management and the Rating Process for Insurance Companies
- Understanding Universal BCAR
In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M. Best
This press release relates to rating(s) that have been published on
Copyright © 2015 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.
Aneela Mather-Khan, CA, +(44) 20 7397 0329
Associate Financial Analyst
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Associate Director, Analytics
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Manager, Public Relations
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Assistant Vice President, Public Relations
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Source:
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