AM Best Affirms Credit Ratings of Abu Dhabi National Insurance Company P.J.S.C.

Business Wire

LONDON--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of Abu Dhabi National Insurance Company P.J.S.C. (ADNIC) (United Arab Emirates). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect ADNIC’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

ADNIC’s balance sheet strength is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), at the strongest level. AM Best expects the company’s risk-adjusted capitalisation to remain comfortably at the strongest level, underpinned by sufficient organic capital generation to support projected growth. The company’s balance sheet strength assessment also benefits from its excellent liquidity position and good financial flexibility. An offsetting factor in the balance sheet strength assessment is ADNIC’s high dependence on reinsurance to write large commercial risks; however, the associated credit risk is mitigated partially by the use of a reinsurance panel of sound financial strength.

ADNIC has a track record of strong operating performance, evidenced by a three-year (2023-2025) weighted return-on-equity of 13.4%. The company’s earnings are evenly balanced between underwriting and investing activities and benefit from the company’s diverse operations both in the UAE and internationally. ADNIC’s underwriting results for the first half of 2026 remained robust, evidenced by a net-net combined ratio of 94.2% (inclusive of life business), and show a minimal net impact of losses arising from the conflict in the Middle East owed to the company’s low retention on commercial business.

ADNIC holds a market leading position in the UAE, where it ranks as the third-largest insurance company by insurance revenue, among publicly traded insurers. ADNIC continues to expand its geographic reach through the opening of a GIFT City India branch and widening international presence, in addition to the acquisition of a 51% shareholding of Allianz Saudi Fransi Cooperative Insurance Company (subsequently renamed to Mutakamela Insurance Company) in 2024. ADNIC writes a well-diversified portfolio by line of business, although the portfolio is weighted to domestic medical business on a net basis.

This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.