A.M. Best Affirms Credit Ratings of Emirates Insurance Company P.S.C.
The ratings reflect EIC’s balance sheet strength, which
The company’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), was assessed at the strongest level at year-end 2017. Capital requirements are largely driven by asset risk arising from the company’s concentrated investment portfolio weighted toward domestic equities. However, EIC has a sufficient capital buffer to absorb volatility arising from these assets. In addition, EIC has a moderate reliance on reinsurers, as the company retains approximately 46% of its premium; however, credit risk is reduced by the company’s reinsurance panel, which is considered to be of good credit quality.
EIC reported profit before tax of AED 110 million for 2017, which is equivalent to a return on equity of 10.3%. Furthermore, there has generally been a good balance of earnings between technical and investment income. EIC has a track record of strong operating and technical profitability, highlighted by a five-year average (2013-2017) combined ratio of 89%, which has demonstrated low volatility during this period. The company’s underwriting returns are driven primarily by its domestic primary operations, and in particular, motor, which benefited from the introduction of pricing controls by the Insurance Authority (IA) at the beginning of 2017.
EIC maintains a reasonable market position in the domestic market and the company’s profile is enhanced via geographical diversification from its specialist reinsurance arm,
This press release relates to Credit Ratings 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. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and
Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180815005554/en/
Financial Analyst
+44 20 7397 0329
[email protected]
or
Senior Director, Analytics
+44 20 7397 0325
[email protected]
or
Manager, Public Relations
+1 908 439 2200, ext. 5159
[email protected]
or
Director, Public Relations
+1 908 439 2200, ext. 5644
[email protected]
Source:
Former York police officer charged with murder for 2016 death of wife in Chester
Vault Enters South Carolina Market
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News