A.M. Best Affirms Ratings of Oman Insurance Company P.S.C.

LONDON--(BUSINESS WIRE)-- A.M. Best has affirmed the financial strength rating of A (Excellent) and the issuer credit rating of “a” of Oman Insurance Company P.S.C. (OIC) (United Arab Emirates). The outlook for both ratings remains stable.

The ratings reflect OIC’s strong risk-adjusted capitalisation, leading position within the United Arab Emirates (UAE), strong enterprise risk management and good operating performance.

OIC maintains robust risk-adjusted capitalisation, benefitting from a strong capital base of AED 2 billion (USD 536 million) and the continued efforts in de-risking of the company’s investment portfolio. OIC’s capital position is expected to remain strong through good internal capital generation and by maintaining a sufficient buffer for strategic initiatives over the next few years.

OIC has maintained a leading position in the UAE, with a diversified portfolio across both the life and non-life business segments. Whilst OIC’s business continues to be concentrated in the UAE, it has achieved some geographical diversification, particularly from its Turkish subsidiary, Dubai Starr Sigorta A. S. In the medium term, OIC is expected to further diversify its revenue streams through strategic expansion into new markets, by introducing new products and developing its inward facultative portfolio whilst remaining focused on protecting its leading position in the local insurance market.

In 2014, OIC’s underwriting performance improved, with technical profits increasing to AED 101 million (USD 27 million). These robust underwriting results helped offset lower investment gains, leaving overall earnings broadly consistent with 2013. Lower investment gains were driven by sluggish performance in the local real estate sector. OIC’s combined ratio (excluding life and healthcare) improved to 88% in 2014 (2013: 96%), primarily due to the company improving its cost efficiencies. For the first half of 2015, OIC continued to demonstrate stability in its underwriting performance, with lower investment gains from the local real estate sector continuing to weigh down overall profitability.

OIC has a comprehensive and integrated risk management framework covering all business units. Along with a well-defined risk appetite statement, the company has developed appropriate tools and processes to identify, measure and manage risks across its business lines. These include internal assessments of capital requirements, catastrophe exposures and counter-party credit risk.

In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M. Best Europe - Rating Services Limited Supplementary Disclosure.

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 visit A.M. Best’s Ratings & Criteria Center.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2015 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

View source version on businesswire.com: http://www.businesswire.com/news/home/20150806006065/en/

A.M. Best
Salman Siddiqui, ACA, +(44) 20-7397-0311
Senior Financial Analyst
[email protected]
or
Mahesh Mistry, +(44) 20-7397-0325
Director, Analytics
[email protected]
or
Christopher Sharkey, +(1) 908-439-2200, ext. 5159
Manager, Public Relations
[email protected]
or
Jim Peavy, +(1) 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
[email protected]

Source: A.M. Best Company, Inc.

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