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AM Best Downgrades Credit Ratings of Saudi Arabian Ins Co B.S.C. ; Places Ratings Under Review With Negative Implications.

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ENPNewswire-November 16, 2021--AM Best Downgrades Credit Ratings of Saudi Arabian Ins Co B.S.C. ; Places Ratings Under Review With Negative Implications

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Release date- 15112021 - AM Best has downgraded the Financial Strength Rating to B+ (Good) from B++ (Good) and the Long-Term Issuer Credit Rating to 'bbb-' (Good) from 'bbb' (Good) of Saudi Arabian Insurance Company B.S.C. (Damana) (Bahrain).

In addition, AM Best has placed these Credit Ratings (ratings) under review with negative implications.

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

The rating downgrades reflect AM Best's revised assessment of Damana's ERM capabilities and governance framework. In particular, AM Best has concerns regarding the company's ability to effectively manage its investment and liquidity risk, and the resulting implications for risk-adjusted capitalisation. In addition, Damana has not yet released audited financial statements for 2020, creating concern over governance and internal controls. AM Best is closely monitoring the situation as the company seeks to remove the uncertainty around liquidity and risk-adjusted capitalisation, while working with its auditors for the release of the 2020 financial statements.

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