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AM Best Affirms Credit Ratings of Emirates Insurance Company P.J.S.C.
[August 04, 2022]

AM Best Affirms Credit Ratings of Emirates Insurance Company P.J.S.C.

AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of "a-" (Excellent) of Emirates Insurance Company P.J.S.C. (EIC) (United Arab Emirates). The outlook of these Credit Ratings (ratings) is stable.

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

EIC's balance sheet strength is underpinned by risk-adjusted capitalisation at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR), supported by low retained underwriting risk. The company's balance sheet strength assessment also benefits from its good liquidity position and prudent reserving practices. Partially offsetting balance sheet strength factors include a degree of concentration within the company's investment portfolio to equity holdings in the UAE, which EIC is addressing by diversifying its equity investments, and its moderately high reliance on reinsurance. In AM Best's view, the credit risk associated with the latter is mitigated partially by the use of reinsurers of sound financial strength.

EIC has a track record of strong operating performance, reporting a five-year (2017-2021) weighted average return on equity of 9.5%. The company has demonstrated strong underwriting performance over time, as evidenced by a five-year (2017-2021) weighted average combined ratio of 90.1%. However, 2021 was a more challenging year for EIC, with the combined ratio reaching 96.3% (2020: 89.0%), which is above the company's longer term average.

EIC maintains a well-established brand and position in the UE insurance market. In 2021, the company generated gross written premium (GWP) of AED 1.1 billion (USD 304.5 million) and ranked as the sixth-largest insurer in its domestic market, based on GWP. EIC writes a diversified portfolio of non-life insurance and reinsurance business, although there is a weighting toward domestic motor business on a net basis. EIC's business profile is enhanced by geographic diversification from its specialist international reinsurance arm, which contributed approximately 15% of total GWP in 2021.

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 Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

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