AM Best Withdraws Credit Ratings of Doha Insurance Group Q.P.S.C.
The ratings reflect DIG’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 (ERM).
The revised outlooks reflect the continued deterioration of DIG’s underwriting performance, as well as concerns regarding the group’s underwriting risk management practices. In recent years, the group’s technical earnings have experienced decline, falling below historical averages and regional peers.
In 2018, the group reported a technical loss of
The group’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), was assessed at the strongest level at year-end 2018. Capital requirements are driven largely by asset risk arising from the group’s investment portfolio, which is weighted toward domestic equities. However, DIG has an excellent liquidity position and a sufficient capital buffer to absorb volatility arising from these assets. Whilst DIG’s premium retention has increased in recent years to 41% at year-end 2018 from 21% in 2013, the group remains reliant on reinsurance. Elevated levels of credit risk are mitigated partially through the use of a well-rated reinsurance panel.
DIG has an established profile in Qatar’s insurance market, where it benefits from being one of the leading national insurance companies and has a well-diversified underwriting portfolio, by line of business. The group achieves a modest level of geographical diversification through its regional reinsurance division, historically focused on property and engineering risks across the
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 Understanding 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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