LONDON–(BUSINESS WIRE)–AM Best has affirmed the Financial Strength Rating of B++ (Good)
and the Long-Term Issuer Credit Rating of “bbb+” of National Life and
General Insurance Company SAOG (NLGIC) (Oman). The outlook of these
Credit Ratings (ratings) remains stable.
The ratings reflect NLGIC’s balance sheet strength, which AM Best
categorises as very strong, as well as its strong operating performance,
limited business profile and appropriate enterprise risk management.
NLGIC’s balance sheet strength is underpinned by risk-adjusted
capitalisation at the strongest level, as measured by Best’s Capital
Adequacy Ratio (BCAR), which benefits from a conservative investment
strategy and a reinsurance panel of good credit quality. The balance
sheet assessment also factors in the company’s good level of liquidity
and the absence of financial leverage. Offsetting factors include the
concentration of the company’s assets in Gulf Cooperation Council
markets and its relatively high reinsurance dependence. The balance
sheet strength assessment incorporates the AM Best’s assessment of
economic, political and financial system risk in Oman and the United
Arab Emirates (UAE).
The company’s strong operating performance, evidenced by a five-year
(2014-2018) weighted average return on equity of 16%, has been driven by
good underwriting results from its non-life portfolio (five-year
weighted average combined ratio of 91%). Medical and motor business are
the principal contributor to earnings, with performance supported by
profits from the company’s group credit life business and stable albeit
relatively modest investment income.
NLGIC has a concentrated underwriting portfolio, with medical business
accounting for 80% of gross written premiums. The company is the leading
medical underwriter in Oman and has a growing presence in the UAE. It is
well-positioned to benefit from the expected introduction of mandatory
medical programmes in Oman, with the anticipated increase in business
likely to provide the company with additional scale.
This press release relates to Credit Ratings that have been published
on AM 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 AM Best’s Recent
Rating Activity web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view Understanding
Best’s Credit Ratings. For information on the proper media
use of Best’s Credit Ratings and AM Best press releases, please view Guide
for Media – Proper Use of Best’s Credit Ratings and AM Best Rating
Action Press Releases.
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unique focus on the insurance industry. Visit www.ambest.com
for more information.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its
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Contacts
Martina Seydoux
Financial Analyst
+44 20 7397
0308
[email protected]
Salman Siddiqui
Associate Director, Analytics
+44
20 7397 0331
[email protected]
Christopher Sharkey
Manager, Public Relations
+1
908 439 2200, ext. 5159
[email protected]
Jim Peavy
Director, Public Relations
+1 908
439 2200, ext. 5644
[email protected]
