AM Best Affirms Credit Ratings of National General 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-” of National General Insurance Company (P.J.S.C.) (NGI) (United Arab Emirates). The outlook of these Credit Ratings (ratings) remains stable.

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

NGI’s balance sheet strength is underpinned by risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). The assessment also factors in the company’s good level of liquidity and absence of financial leverage. Offsetting rating factors include NGI’s high dependence on reinsurance and the concentration of its invested assets in the UAE. The balance sheet strength assessment incorporates the UAE’s low economic risk, and moderate political and financial system risk. AM Best expects prospective balance sheet strength to remain at a very strong level, supported by good earnings retention and controlled growth.

The company’s strong operating performance, evidenced by a five-year (2015-2019) weighted average return on equity of 5.6%, has been driven by robust underwriting results from its non-life portfolio. NGI has demonstrated good underwriting performance across key non-life lines of business, with a five-year (2015-2019) average combined ratio of 88.8%, as calculated by AM Best. Operating performance is supported further by stable investment income, with a five-year (2015-2019) average investment return of 2.6%, excluding gains.

NGI’s profile is limited, due in part to its concentration to the highly competitive UAE market. The company has a well-established profile in the UAE insurance market, where it has a strong presence in the motor and medical lines of business and is one of only 12 insurers licensed to participate in the Dubai Health Authority’s mandatory health insurance scheme.

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.

AM Best is a global credit rating agency, news publisher and data provider specialising in the insurance industry. The company does business in more than 100 countries. Headquartered in Oldwick, NJ, AM Best has offices in cities around the world, including London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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Algirdas Karvelis, ACA

Financial Analyst

+44 20 7397 0285

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Salman Siddiqui, ACA

Director, Analytics

+44 20 7397 0331

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Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

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Jim Peavy

Director, Public Relations

+1 908 439 2200, ext. 5644

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