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FOR IMMEDIATE RELEASE
LONDON - MAY 18, 2016 10:21 AM (EDT)
A.M. Best has affirmed the financial strength rating of B++ (Good) and the issuer credit rating of “bbb+” of Abu Dhabi National Insurance Company P.S.C. (ADNIC) (United Arab Emirates). The outlook for each rating remains stable. Concurrently, A.M. Best has withdrawn the ratings following the company’s request to no longer participate in A.M. Best’s interactive rating process.
The ratings of ADNIC reflect its strong business profile in the United Arab Emirates (UAE), solid level of risk-adjusted capitalisation and improving enterprise risk management. These rating factors are partially offset by the deterioration in risk-adjusted capitalisation and weak operating performance experienced in the past two years.
Following weak performance experienced in recent years, ADNIC has taken remedial steps to strengthen its governance structure, underwriting discipline and claims and reserving processes. The measures taken by management have enabled the company to report a return to profit during the first three months of 2016, with ADNIC generating an underwriting and operating profit of AED 16.5 million (USD 4.5 million) and AED 39.0 million (USD 10.6 million), respectively. Going forward, ADNIC expects to rebuild its capital adequacy with improved and full retention of medium-term earnings, along with the issuance of an AED 390.0 million three-year mandatory convertible bond.
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 see A.M. Best’s Recent Rating Activity web page.
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