S&P confirms ‘A-’ rating for Oman Insurance Co
S&P Global Ratings has reaffirmed the ‘A-’ stable outlook rating for Oman Insurance Company, acknowledging the strong creditworthiness of the leading listed insurance company in the UAE.
The rating agency said with capital adequacy above the ‘AAA’ level (maximum security level) is robust and sufficient to support Oman Insurance Company’s business growth and diversification plans.
The agency said that the company’s liquidity position remarkably improved to ‘exceptional’ from ‘very strong’ due to efforts made in derisking the investment portfolio. Further, the company had drastically reduced its bank borrowings by the year-end of 2018, with all borrowings completely paid-off by the first half of 2019.
Oman Insurance Company provides a wide range of comprehensive insurance solutions for individuals and commercial clients in life, healthcare and general insurance.
Oman Insurance has retained its UAE market leading position with a gross premium written of AED3.7bn (RO0.39bn) in 2018. The company leverage on its long-standing relations with prominent international insurers and reinsurers to support its business growth and diversification plans, S&P said.
Welcoming the rating, Jean-Louis Laurent Josi, chief executive officer at Oman Insurance said, “In 2018, we have increased our solvency ratio to 214 per cent, our highest solvency of the past years, which confirms our strong ability to meet our policyholders’ obligations.”
The strengthening of the solvency is notably the result of an efficient cash collection, resulting in a reduction of more than 50 per cent of the net receivables and an increase of the free cash flow of over AED400mn, de-risking investment portfolio as well as reserves strengthening, he said.
”This trend is confirmed in 2019 and we have crossed solvency ratio over 225 per cent. We thank our valued customers, business partners, employees and shareholders for their relentless support that is key to all our successes,” he added.