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FOR IMMEDIATE RELEASE
OLDWICK - AUGUST 13, 2015 09:13 AM (EDT)
A.M. Best has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of "a-" of Alliance Insurance (PSC) (Alliance) (United Arab Emirates). The outlook for both ratings remains stable.
The ratings reflect Alliance's strong risk-adjusted capitalisation, excellent overall profitability and moderate business profile.
Alliance maintains strong risk-adjusted capitalisation that benefits from low underwriting leverage, a conservative investment portfolio and a reinsurance program of good credit quality. Internal capital generation from strong underwriting performance is expected to adequately support increasing capital requirements as the company grows its franchise over the coming years.
Alliance has demonstrated a good track record of profitability, with overall earnings reaching AED 48.13 million (USD 13 million) in 2014, equivalent to a return on capital and surplus of 13%. Alliance's profitability is supported by a solid underwriting performance, with life business producing a 14% gross profit margin and non-life achieving a strong combined ratio of 66%. Furthermore, Alliance's profitability is supplemented by a conservative and stable investment profile that yielded a 5.3% return in 2014. For the first half of 2015, Alliance continued to demonstrate stability in its underwriting performance, with overall profits remaining in line with the first half of 2014.
Alliance is a medium-size composite insurance company operating in the United Arab Emirates. The company has a balanced profile providing life and general insurance products. Alliance's premium retention on non-life business remains low, emphasising its high level of reinsurance dependence.
In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M. Best Europe - Rating Services Limited Supplementary Disclosure.
This press release relates to rating(s) that have been published on A.M. 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 visit A.M. Best's Ratings & Criteria Center.
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