AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Emirates Insurance Company P.J.S.C. (EIC) (United Arab Emirates). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect EIC’s balance sheet strength, which AM Best categorises as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM).
EIC’s balance sheet strength is underpinned by risk-adjusted capitalisation at the strongest level at year-end 2019, as measured by Best’s Capital Adequacy Ratio (BCAR). Capital requirements are largely driven by asset risk arising from the company’s investment portfolio, which is weighted toward equities in the UAE. In AM Best’s view, EIC has sufficient capital buffers to absorb volatility arising from this asset class, with capital adequacy remaining robust despite the COVID-19 pandemic driven investment market turbulence during the first half of 2020. The