AM Best downgraded the issuer’s long-term credit rating (long-term ICR) to “bb” (Fair) from “bb +” (Fair) and confirmed the financial strength rating of B (Fair) from Al- Sagr National Insurance Company PSC (ASNIC) (
The ratings reflect the strength of ASNIC’s balance sheet, which AM Best considers adequate, as well as its adequate operational performance, its limited commercial profile and its marginal management of business risks.
Long-term ICR downgrade reflects continued erosion of ASNIC’s capital base following a net loss of AED 39.2 million for the nine-month period ended
ASNIC has posted satisfactory operational performance over the past few years, as evidenced by an average combined ratio over five years (2016-2020) of 95.8%. However, volatile investment results and the financial costs of servicing the overdraft facility weighed on overall earnings and the company only achieved a five-year average return on equity ratio (2016-2020 ) moderate 3.3%. Operating results deteriorated significantly in 2021, with a net loss of AED 39.2 million for the nine-month period, due to technical losses on the automotive business and a share in the net losses of an associate,
ASNIC has a modest commercial profile as an intermediary insurer in the
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Source: AM Best