ADNIC Ratings Reaffirmed by Leading International Agencies
27 Aug 2014
Abu Dhabi National Insurance Company (ADNIC), one of the region’s leading providers of insurance solutions for individuals and corporates, today announced the reaffirmation of its financial strength ratings by A.M. Best and Standard and Poor’s (S&P). These agencies have once again given ADNIC an A (Excellent) rating with a stable outlook and an A- rating with a positive outlook, respectively.
According to A.M. Best, its rating reflects ADNIC’s strong risk-adjusted capitalization, its established position in the United Arab Emirates (UAE), and its consistently strong profitability. A.M. Best also highlighted the fact that ADNIC’s risk-adjusted capitalization remains strong, and this has been driven by the Company’s decision to become a “genuine risk carrier” with improved retention across its business lines and diversification of its investment portfolio from cash to fixed-income securities.
S&P’s rating was based on ADNIC’s strong financial risk profile and satisfactory business risk profile, as well as its capital and earning strength and diverse investment portfolio. S&P’s report on ADNIC also noted that the Company’s liquidity is exceptional given its large pool of liquid assets relative to its potential liquidity needs.
Commenting on the ratings, ADNIC CEO, Mr. Walid Sidani, said: “This reaffirmation of ADNIC’s positive and stable outlook by S&P and A.M. Best reflects the strength of our business strategy and success in executing our Perpetual Excellence Plan. As part of this, we have been focused on expansion, product innovation and leveraging new technology, as well as ensuring sustainable profitability in our core business of risk underwriting.”
ADNIC continues to maintain a leading position within the UAE market and a diversified business portfolio across a number of sectors, including healthcare, aviation, motor, life, energy and travel insurance. The company achieved a 5% growth rate in 2013, with premium revenue increasing to AED 2.4 billion (USD 655 million).