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AM Best Affirms Dubai Insurance Company's Financial Strength Rating at A (Excellent)

Strategic Insights

— 1 min read

Dubai Insurance Company (PSC) (DIN) has maintained its Financial Strength Rating of A (Excellent) and Long-Term Issuer Credit Rating of "a" (Excellent) from AM Best due to its strong balance sheet and robust operating performance. The company's ability to generate strong organic capital and maintain sufficient liquidity has been a key factor in its rating affirmation. However, DIN's high reinsurance dependence and exposure to fair value fluctuations in its investment portfolio have been considered in the assessment.

Key Takeaways:

  • Dubai Insurance Company (PSC) (DIN) has a Financial Strength Rating of A (Excellent) and Long-Term Issuer Credit Rating of "a" (Excellent) with a stable outlook.
  • The company's balance sheet strength is assessed as very strong, supported by a risk-adjusted capitalization at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR).
  • DIN's strong operating performance is driven by robust underwriting results and steady investment income, with a net-net combined ratio of 93.2% in 2024.
  • The company's material share of equity holdings in its investment portfolio and exposure to fair value fluctuations introduce volatility in capital and surplus.
  • DIN has a track record of success in enhancing its market position in a highly competitive market without compromising technical profitability.
  • The company's business mix has diversified significantly in recent years, with a focus on consortium managed products, such as the Workers Protection Plan (WPP) and the Involuntary Loss of Employment (ILOE) products.

Statistics:

  • DIN's Best's Capital Adequacy Ratio (BCAR) is at the strongest level.
  • The company's net-net combined ratio was 93.2% in 2024, an increase from the prior year due to the motor portfolio's worsening performance.
  • DIN's investment income has been a key contributor to the company's strong operating performance.

Sources:

  • AM Best
  • Dubai Insurance Company (PSC) (DIN)
  • IFRS 17
  • Workers Protection Plan (WPP)
  • Involuntary Loss of Employment (ILOE) products
  • Best's Capital Adequacy Ratio (BCAR)

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