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AM Best Assigns Credit Ratings to Abu Dhabi National Insurance Company P.J.S.C.

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ENPNewswire-October 7, 2021--AM Best Assigns Credit Ratings to Abu Dhabi National Insurance Company P.J.S.C.

(C)2021 ENPublishing - http://www.enpublishing.co.uk

Release date- 06102021 - AM Best has assigned a Financial Strength Rating of A (Excellent) and a Long-Term Issuer Credit Rating of 'a' (Excellent) to Abu Dhabi National Insurance Company P.J.S.C. (ADNIC) (United Arab Emirates).

The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect ADNIC's balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

ADNIC's balance sheet strength is underpinned by its risk-adjusted capitalisation, as measured by Best's Capital Adequacy Ratio (BCAR), at the strongest level. AM Best expects ADNIC's BCAR scores to remain comfortably at the strongest level, supported by good earnings retention and controlled growth. The company benefits from a liquid investment portfolio and good financial flexibility. An offsetting factor in the balance sheet strength assessment is ADNIC's dependence on reinsurance to write large commercial risks; however, the risks associated with this dependence are mitigated partly by a panel of mostly well-rated reinsurers.

ADNIC has a track record of strong operating performance, demonstrated by a five-year (2016-2020) weighted average return-on-equity ratio of 13.2%. Strong operating performance is underpinned by robust underwriting results, with a five-year average combined ratio of 85.6%. Following five years of improving profitability, the company reported its highest profit after tax since inception of AED 371 million in 2020, aided by reduced claims frequency on its large medical portfolio. AM Best expects the company's operating performance to remain strong prospectively, supported by disciplined underwriting and stable investment results.

ADNIC has a market leading...

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