AM Best Affirms Credit Ratings of Insurance House P.S.C.
AM Best has affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” (Good) of Insurance House P.S.C. (IH) (
The ratings reflect IH’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and marginal enterprise risk management (ERM).
IH’s balance sheet strength is underpinned by its risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). In addition, the company maintains a panel of financially sound reinsurers and a good level of liquidity to support its insurance obligations. IH also is considered to have good financial flexibility, most recently demonstrated through the issuance of AED 15 million (approximately
IH has demonstrated an adequate operating performance track record in recent years, following execution of strategic initiatives to stabilise its operations in light of historically volatile performance in 2016 and prior years. The adoption of stricter underwriting controls and tighter claims management, and a change of senior management in 2016, has resulted in the company generating underwriting profits in each year since 2017 (combined ratio of 98.0% in 2020), compared with significant underwriting losses prior to this (combined ratio of 122.5% in 2016). The company’s investment portfolio continues to contribute positively to overall profitability, producing an investment yield (including gains) of 3.5% in 2020. AM Best expects IH’s operating performance metrics to remain robust over the coming years, as the company executes its business plan.
IH has a modest share of the
AM Best views IH’s ERM as marginal. In recent years, the company has begun formalising its risk management framework, and strengthening risk management capabilities to more closely align with its risk profile. AM Best expects IH to continue to implement and enhance its ERM framework, as it continues with its strategic transformation of the company over the coming years.
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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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Source: AM Best
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