Dubai PR Network, Online Press Release from Dubai and Middle East
Banking & Insurance(Banking & Investments)
Filter PR by
A.M. Best Affirms Ratings of Orient Insurance Company (PJSC)

LONDON--(BUSINESS WIRE / ME NewsWire)-- A.M. Best Europe – Rating Services Limited has affirmed the financial strength rating of A (Excellent) and the issuer credit rating of “a” of Orient Insurance Company (PJSC) (Orient) (United Arab Emirates). The outlook for both ratings is stable.

The ratings reflect Orient's supportive level of risk-adjusted capitalisation, solid business profile within the UAE and robust operating performance. An offsetting factor is Orient's concentrated investment profile.

Orient's level of risk-adjusted capitalisation remains supportive of the current ratings despite a substantial reduction in 2012, stemming from higher investment risk following the purchase of a single equity holding. Supporting Orient's risk-adjusted capital position is its high level of internal capital generation, low retention of insurance risks and a reinsurance programme of good credit quality.

Orient remains the third-largest insurance company in the UAE by gross written premium with approximately 10% market share. Premiums grew 11% in 2012 to AED 1.4 billion (USD 380 million), driven by Orient's strong multichannel distribution network and its position within the Al Futtaim group. Orient continues its strategy of diversifying its premium generation following the regional expansion of its parent's franchise. However, at present, the majority of its business is generated within the UAE.

For the third consecutive year, Orient has generated the highest net profit in the UAE insurance market with earnings continuing its upward trend despite increased market competition. Profits increased 5% in 2012 to AED 213 million (USD 58 million), and the return over adjusted capital and surplus remained at approximately 20%. Orient's technical results remain strong, achieving a combined ratio of approximately 60% in the last four years of operation.

A.M. Best has concerns regarding a shift in Orient's investment strategy, with material exposure to a single equity investment, which consumes one-third of the company's asset allocation. This change in strategy may create a potential volatility in Orient's capital base and investment return, thereby creating the need for an enhanced enterprise risk management framework to ensure investment risks are controlled and mitigated effectively. A.M. Best notes that further improvement in risk management is expected over the coming year, with the development of an internal capital model.

Going forward, a material reduction in risk-adjusted capitalisation, a significant impairment emanating from its equity investment, or insufficient improvements in its enterprise risk management could add negative pressure to the ratings. Upward movements are unlikely over the medium term.
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. Best's Credit Rating Methodology can be found at

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.

A.M. Best Europe – Rating Services Limited is a subsidiary of A.M. Best Company.A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit

Posted by : Dubai PR Network Editorial Team
Viewed 9894 times
PR Category : Banking & Investments
Posted on : Saturday, April 27, 2013  11:36:00 AM UAE local time (GMT+4)
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of
Previous Story : AXA unveils growth plans in UAE & region during Group Chairm...
Next Story : Al Hilal Bank acted as Manager of the UAE on the First Malay...
Email this article Print this article

Share this article with your friends and followers
Back to Section Home

Related Stories

Most Viewed Press Release posted in the last 7 days
Inventive, Futuristic and Daring Translucent is a Distinguished Milestone for Police. [6503-Views]
Show your Nanny some love and treat them to a Complimentary Haircut throughout August and ... [4935-Views]
Introducing Lunette: A Tool to Empower Women [4544-Views]
Corum Golden Bridge Titane DLC - black beauty for the man of style [4386-Views]
Robinsons Showcases Malone Souliers' Stunning New Collection for Pre-Fall 19 [4069-Views]
Marks & Spencer Unveils Its Autumn 2019 Kidswear Collection [3825-Views]
Aesop's Parsley Seed Skin Priming Regimen [3660-Views]
Ferragamo Urban - 2019 Fall/Winter Collection [3611-Views]
Same Favourite Fragrance, New Innovative Products From the Ritual of Karma [3532-Views]
GUESS - The Perfect Tote [3489-Views]
Sandro: The Power Suit [3386-Views]
Corum Admiral Legend 42-Icon ahead [3379-Views]
GEMS Education students shine with excellent A-Level examination results [3373-Views]
Dubai Delivers on Tourist Volumes Again, With a Strong 8.36 Million Overnight Visitors in ... [3355-Views]
Autumn / Winter 2019-20 Men's and Women's Sneakers Collection [3318-Views]
Ralph Lauren Debuts “Wear Your Story” Denim Campaign [3306-Views]
The future of photography and videography is in Canon's hands, with five 2019 EISA Awards [3294-Views]
Hormann announces speed rolling shutter DD S6 [3251-Views]
Al Ain Hospital doctors save young girl from 2.5 cm pin in her lungs [3239-Views]
Exceptional Playtime with Soundcore Vortex [3239-Views]
Tazio Nuvolari Vanderbilt Cup [3202-Views]
Forecasting Mesmerising Sea Views and Exotic Seafood at Gonu [3166-Views]
Get 50 per cent off back-to-school essentials at Dragon Mart [3123-Views]
Jaguar I-pace: Redefining What It Means to Be a ‘CAR' [3087-Views]
Rock Chic Edit with GUESS [3087-Views]
RSS Facebook Twitter LinkedDin
Top Sections
Top Stories