A.M. Best Affirms Ratings of Doha Insurance Company Q.S.C.
The ratings reflect DIC’s very strong risk-adjusted capitalisation, solid position within the
DIC’s risk–adjusted capitalisation remains very strong, benefiting from low underwriting leverage and a robust reinsurance panel that supports the company’s significant reinsurance cession on commercial risks. Capital consumption continues to be driven by investment risk, due to the company’s material exposure to domestic equities. Nevertheless, DIC holds a sufficient level of cash and cash equivalents to support an excellent liquidity position, and has demonstrated its solid financial flexibility with a successful rights issue in the first half of 2014.
DIC has established a strong franchise within its domestic market. Although the company’s gross written premium fell by 7% to QR 494 million (
DIC has demonstrated a track record of good operating results, and generated a profit of QR 110 million (
DIC’s risk management is a negative rating driver. At present, the company operates a silo approach to risk management, mainly managing underwriting and credit risks independently. Whilst the company’s track record of technical profitability is indicative of good underwriting controls, the risk management framework is currently deemed underdeveloped and requires significant improvement to effectively integrate and embed all risks the company is exposed to, especially in the context of its expansion plan.
This press release relates to rating(s) that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page.
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