AM Best Downgrades Issuer Credit Rating of Saudi Arabian Insurance Company

Saudi Arabia flag

AM Best has downgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “bbb” from “bbb+” and affirmed the Financial Strength Rating (FSR) of B++ (Good) of Saudi Arabian Insurance Company B.S.C. (c) (Damana) (Bahrain). The outlook of the Long-Term ICR has been revised to stable from negative, whilst the outlook ...

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

The downgrade of the Long-Term ICR reflects the company’s marginal technical results over recent years and uncertainty regarding prospective performance. Although the company’s historical performance had been good, a material decline in premium volumes as a result of a significant reduction in the international medical portolio in 2018 has resulted in weakened underwriting performance metrics and depressed returns on equity.

Read more…

If you are already registered, please sign in here

Register now for unlimited access

Register for unlimited access

For continued access to free content on the website please take a few moments to register, or sign in if you have already registered.

  • Keep up to date with the latest industry news
  • Sign up to enewsletters
  • Create a profile and post comments on stories