AM Best Affirms Credit Ratings of National General 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 National General Insurance Company (P.J.S.C.) (NGI) (United Arab Emirates). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect NGI'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.

NGI's balance sheet strength is underpinned by its risk-adjusted capitalisation at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR). AM Best expects the company's risk-adjusted capitalisation to remain at the strongest level, supported by continued internal capital generation. The company's balance sheet strength is supported further by a strong liquidity profile. The company has a well-balanced investment portfolio by asset class; however, its concentration in the UAE and moderate exposure to higher-risk assets including local equities and real estate are offsetting factors.

NGI has a track record of strong operating performance and generated a return on equity of 14.4% in 2023 (2022: 9.1%) (as calculated by AM Best). The company's earnings continue to be supported by robust underwriting results stemming from both its non-life and life portfolio, which have reported overall profits in each of the past five years of operation (2019-2023). Furthermore, positive investment returns have contributed to overall profitability. Despite highly competitive conditions in NGI's core lines of business, including medical and motor, the company reported net profits of AED 74.9 million in 2023.

NGI holds a well-established position in the UAE insurance market as a mid-tier player, reporting insurance revenue of AED 745.8 million in 2023 (AED 621.4 million in 2022). NGI's business is concentrated largely to the UAE market, and the company's revenue is weighted toward medical business on a net basis. AM Best expects the company to grow modestly over the short-to-medium term, with a focus on achieving bottom line profitability and maintaining a balanced underwriting portfolio.

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 Performance Assessments, 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 www.ambest.com.

Copyright 2024 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240607341201/en/

Contacts:

Emily Thompson
Senior Financial Analyst
[phone]
[e-mail]

Jessica Botelho-Young, CA
Associate Director, Analytics
[phone]
[e-mail]

Christopher Sharkey
Associate Director, Public Relations
[phone]
[e-mail]

Al Slavin
Senior Public Relations Specialist
[phone]
[e-mail]