AM Best Affirms Credit Ratings of Emirates Insurance Company P.J.S.C.

AM Best Affirms Credit Ratings of Emirates Insurance Company P.J.S.C.

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

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

EIC’s balance sheet strength is underpinned by its risk-adjusted capitalisation at the strongest level at year-end 2020, as measured by Best’s Capital Adequacy Ratio (BCAR). The company’s balance sheet benefits from its strong liquidity position and prudent reserving practices. Partially offsetting factors include some concentrations to equity securities in the UAE within the company’s investment portfolio, which EIC is addressing through diversification of its equity holdings, and a reliance on reinsurance. The credit risk associated with the latter is, however, mitigated partially by the use of a panel of reinsurers of sound financial strength.

EIC has a track record of strong operating performance, with a good balance of earnings between underwriting and investment returns. The company’s five-year (2016-2020) weighted average return on equity is approximately 10%, supported by strong and relatively stable underwriting results with a weighted average combined ratio of approximately 90% for the same period, as calculated by AM Best.

EIC maintains a well-established brand and position in the UAE insurance market. In 2020, the company wrote gross written premium (GWP) of AED 1.0 billion and ranked as the sixth-largest insurer in the market, based on GWP. EIC writes a diversified portfolio of non-life insurance and reinsurance business, although there is a weighting toward domestic motor business on a net basis. EIC’s business profile is enhanced by geographic diversification from its specialist international reinsurance arm, which contributed approximately 20% of total GWP in 2020.

During 2020 and 2021, the company has taken a series of measures to strengthen the control environment and internal processes following a control failure identified in 2020, which resulted in the restatement of prior year financial figures. Overall, AM Best considers EIC’s ERM framework and capabilities to remain appropriate for the size and complexity of its operations.

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 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

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Published at Thu, 02 Sep 2021 13:35:00 +0000

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