UAE - Moody’s assigns an A2 IFS rating to Oman Ins. co.
Thursday, 01 30 2020, Category: Rating, Country: U.A.E
Moody's Investors Service ("Moody's") has today assigned an A2 Insurance Financial Strength (IFS) rating to Oman Insurance Company P.S.C. (OIC). The outlook is stable.
OIC, based in the United Arab Emirates (UAE), is a leading insurer in the GCC region, with strong positions in medical, life, commercial and consumer insurance markets. The company is majority owned (64%) by MashreqBank psc (Mashreq, senior unsecured debt rating Baa1/stable) - the fifth largest bank in the UAE – and publicly listed on the UAE stock exchange.
OIC's A2 IFS rating reflects its strong market position and franchise in the Middle East and North Africa (MENA) region, well diversified business profile across product and distribution, and solid financial profile including moderate asset risk and good capital adequacy. The progress OIC has made in enhancing profitability, along with moderate reserve risk and its good technical expertise and risk management capabilities further support its credit profile. Somewhat offsetting these strengths are OIC's concentrated exposure to the UAE, an intensely price competitive market, high reliance on reinsurance relative to global peers, and ongoing transition and execution risk related to its business transformation.