Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

A.M. Best Assigns Ratings to Al-Sagr National Insurance Co.  Join our daily free Newsletter

MENAFN Press - 25/08/2012

No. of Ratings : 0
Add to Mixx!


(MENAFN Press) LONDON - Thursday, August 23rd 2012

A.M. Best Europe “ Rating Services Limited has assigned a financial strength rating of B (Good) and issuer credit rating of "bbb-" to Al-Sagr National Insurance Co. (Al Sagr) (United Arab Emirates). The outlook assigned to both ratings is stable.

The ratings reflect Al Sagr's strong level of risk-adjusted capitalisation and good local business profile within the UAE. Offsetting factors include the company's volatile operating performance and its leveraged balance sheet. Al Sagr's ratings also take into consideration its parent company, Gulf General Investment Company (GGICO), which has successfully undergone a restructuring of its debt.

Al Sagr's risk-adjusted capitalisation is strong and benefits from a large capital base of AED 570.7 million (USD 155.4 million), relative to a low net written premium and technical provision leverage. The company has been able to grow its capital internally through a good track record of operating performance and high level of profit retention. Furthermore, risk-adjusted capitalisation is expected to remain supportive of the company's projected growth of 10% to 15% over the coming years.

In A.M. Best's opinion, Al Sagr's business profile is good. Although its premium revenue decreased in recent years as a result of tightening underwriting guidelines, Al Sagr remains the ninth-largest UAE insurance company by gross written premiums. Premium is generated throughout UAE and also regionally through a subsidiary in Jordan. Dubai remains Al Sagr's main source of income; however, A.M. Best notes that other Emirates in UAE and also Al Sagr's Jordanian operation have been growing in importance in recent years.

Al Sagr's investment portfolio is inclined towards equities and real estate investments, which exposes the company to volatility of earnings through its non-technical account. Although investment yield has been stable at 3%, investment performance has been offset by large unrealized losses. Furthermore, underwriting performance has deteriorated in recent years as a result of negative performance in the medical business and losses emanating from the company's Jordanian operation.

Al Sagr has borrowing facilities in the form of overdrafts repayable upon demand that totalled AED 207.5 million in 2011. As a result, a large portion of the company's deposits are held under lien and are bearing a yearly finance cost of AED 11.5 million (USD 3.2 million). A.M. Best notes that the company's result has been partly offset by the cost of this facility but does not expect this to be fully repaid over the coming years. The net debt-to-equity ratio equaled 35.2% in 2011.

In addition, Al Sagr's parent company has bank loans and facilities totaling AED 3.45 billion, and due to the nature of its operation, equities and real estate investments also have been performing weakly in recent years. However, GGICO was able to secure a refinance agreement with its existing finance providers, and the debt is expected to be fully repaid by the end of 2018. However, A.M. Best notes that the largest portion of its loans is to be repaid in the later years, which could place further pressure on the company's cash flow in the future.

Over time, a material improvement in Al Sagr's operating performance, including its medical and its Jordanian operation, could place positive pressure on the ratings. A deterioration of the company's risk-adjusted capitalisation or difficulties experienced by GGICO in meeting its debt's amortization schedule could have a negative impact on Al Sagr's ratings.

The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Key criteria utilised include: "Risk Management and the Rating Process for Insurance Companies"; "Assessing Country Risk"; "Understanding Universal BCAR"; and "Rating Members of Insurance Groups". Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

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.

About A.M. Best
Rating Services Limited is a subsidiary of A.M. Best Company.Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.


  MENA News Headlines
Apr 23 2014Omantel launches service package for youth ,MENAFN
(MENAFN) Omantel announced launching 'Ozone' plan, a new package designed especially for the youth. This comes with the company"s constant efforts to enhance the communication needs of its customers, ...

Apr 23 2014Dh154 billion for Arabtec projects ,Khaleej Times
(MENAFN - Khaleej Times) Arabtec will spend dh140 billion on building one million low-cost houses in egypt and dh14 billion on five mixed-use residential projects in abu dhabi and dubai its chief ...

Apr 23 2014?Titli? makers excited about Cannes selection ,Khaleej Times
(MENAFN - Khaleej Times) The movie about the badlands of delhi?s dystopic underbelly will be in competition as part of the un certain regard section of the 67th cannes film gala to be held may ...

Apr 23 2014Saudi- Yaroub Bashraheel: In search of peace ... underwater ,Arab News
(MENAFN - Arab News) You've heard of diving snorkeling and other water activities but rarely has anyone heard of free-diving. it's a form of diving underwater without the aid of any breathing ...

Apr 23 2014Saudi- Schneider highlights intelligent health care solutions at forum ,Arab News
(MENAFN - Arab News) Schneider electric a global specialist in energy management is set to showcase its leadership in intelligent health care solutions at the second saudi forum for planning and ...

Apr 23 2014Saudi- Divorcees can seek housing ,Arab News
(MENAFN - Arab News) The kingdom will accept applications from saudi divorced women and widows for financial and housing support said justice minister muhammad al-issa.al-issa called on applicants ...

Apr 23 2014Saudi- New passport office opens at Red Sea Mall ,Arab News
(MENAFN - Arab News) The passport department has opened a new office for citizens and residents at the red sea mall.gen. abdul rahman bin abdullah al-tuwairki deputy director general of the ...

Apr 23 2014Kowait- Police deportation powers curbed ,Arab Times
(MENAFN - Arab Times) Kuwait city april 3 (afp): kuwaiti police will no longer be able to deport expatriates without interior ministry approval under new rules published thursday after officers ...

Apr 23 2014Kowait- Amiri Diwan urges all off tape case ,Arab Times
(MENAFN - Arab Times)  kuwait city april 9 (agencies): the amiri diwan has called on everybody to steer clear of the controversial tape issue and let the public prosecution take the necessary ...

Apr 23 2014Saudi Savola Group revenue up 43 pct in Q1 ,MENAFN
(MENAFN) Saudi Arabia's Savola Group registered a 43 percent increase in profits in the first quarter, well over expectations of analysts, Arabian Business reported. According to a statement to ...

Apr 23 2014Dewa and GE explore collaboration opportunities ,Khaleej Times
(MENAFN - Khaleej Times) Saeed mohammed al tayer managing director and chief executive officer of the dubai electricity and water authority (dewa) recently received a ge delegation to explore ...

Apr 23 2014Local international companies come out in force ,Khaleej Times
(MENAFN - Khaleej Times) Cityscape abu dhabi has started showing stronger interest from property developers who have showcased their upcoming projects. the three-day realty show was opened by ...

Apr 23 2014Tamouh steps up activity on projects ,Khaleej Times
(MENAFN - Khaleej Times) Abu dhabi-based real-estate developer tamouh has scaled up construction activity on all of its announced reem island projects to meet the rising demand for prime spaces in ...

Apr 23 2014Here?s your chance to share screen space with SRK ,Khaleej Times
(MENAFN - Khaleej Times) Groupon india has joined hands with srk?s red chillies entertainment to give fans a chance to feature with the superstar in his upcoming film ?happy new year?. if you ...

Apr 23 2014Sale of Gate Towers penthouses launched ,Khaleej Times
(MENAFN - Khaleej Times) Aldar properties has launched the sale of 21 exclusive duplex penthouse apartments at gate towers the penthouse collection in shams abu dhabi on al reem island. one of ...

Apr 23 2014Saudi- Noha Al-Sharif — an expert in Islamic sculpture ,Arab News
(MENAFN - Arab News) Saudi sculptress noha al-sharif is known for her islamic inspired sculptures that reflect both religion and lifestyle. the concept of modern art attracted her to this medium ...

Apr 23 2014Saudi- ASUS showcases product series at Aramco Week ,Arab News
(MENAFN - Arab News) Asus described as the world's renowned consumer notebook vendor and producer of the 'world's best-selling motherboards" recently participated in aramco week and showcased a ...

Apr 23 2014Kowait- New hospital to be ready by 2014 end ,Arab Times
(MENAFN - Arab Times) Kuwait city jan 14 (kuna): director of the 'mega projects 3' group at kuwait oil company (koc) yaqoub dashti said on tuesday that the new ahmadi hospital would be ready to ...

Apr 23 2014Seven tied for the lead in chess championships ,Khaleej Times
(MENAFN - Khaleej Times) Former champion sukandar grabs lead of asian continental women?s chess. former asian women’s champion wgm irene sukandar of indonesia (left) beat wim ni shiqun ...

Apr 23 2014Saudi- Five to die for 2003 attacks ,Arab News
(MENAFN - Arab News) A special criminal court on sunday convicted five people of terror related charges and sentenced them to death. thirty-seven others were sentenced to varying prison terms for ...


Live Currency Rates



Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  

Middle East North Africa - Financial Network

Main News
News By Industry
News By Country
Marketwatch News
UPI News
Comtex News

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details


Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks

Saudi Arabia 

Investment Game
Economic Calendar
Financial Glossary

Portfolio Tracker


Financial Calculators

RSS Feeds [XML]

Corporate Monitor


Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters

© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help