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   LONDON--(Business Wire)--A.M. Best Europe - Rating Services Limited has affirmed the financial strengthrating of A (Excellent) and the issuer credit rating of "a" of Orient InsuranceCompany (PJSC) (Orient) (United Arab Emirates). The outlook for both ratings isstable. The ratings reflect Orient`s supportive level of risk-adjusted capitalisation,solid business profile within the UAE and robust operating performance. Anoffsetting factor is Orient`s concentrated investment profile. Orient`s level of risk-adjusted capitalisation remains supportive of the currentratings despite a substantial reduction in 2012, stemming from higher investmentrisk following the purchase of a single equity holding. Supporting Orient`srisk-adjusted capital position is its high level of internal capital generation,low retention of insurance risks and a reinsurance programme of good creditquality. Orient remains the third-largest insurance company in the UAE by gross writtenpremium with approximately 10% market share. Premiums grew 11% in 2012 to AED1.4 billion (USD 380 million), driven by Orient`s strong multichanneldistribution network and its position within the Al Futtaim group. Orientcontinues its strategy of diversifying its premium generation following theregional expansion of its parent`s franchise. However, at present, the majorityof its business is generated within the UAE. For the third consecutive year, Orient has generated the highest net profit inthe UAE insurance market with earnings continuing its upward trend despiteincreased market competition. Profits increased 5% in 2012 to AED 213 million(USD 58 million), and the return over adjusted capital and surplus remained atapproximately 20%. Orient`s technical results remain strong, achieving acombined ratio of approximately 60% in the last four years of operation. A.M. Best has concerns regarding a shift in Orient`s investment strategy, withmaterial exposure to a single equity investment, which consumes one-third of thecompany`s asset allocation. This change in strategy may create a potentialvolatility in Orient`s capital base and investment return, thereby creating theneed for an enhanced enterprise risk management framework to ensure investmentrisks are controlled and mitigated effectively. A.M. Best notes that furtherimprovement in risk management is expected over the coming year, with thedevelopment of an internal capital model. Going forward, a material reduction in risk-adjusted capitalisation, asignificant impairment emanating from its equity investment, or insufficientimprovements in its enterprise risk management could add negative pressure tothe ratings. Upward movements are unlikely over the medium term. The methodology used in determining these ratings is Best`s Credit RatingMethodology, which provides a comprehensive explanation of A.M. Best`s ratingprocess and contains the different rating criteria employed in the ratingprocess. Best`s Credit Rating Methodology can be found at
  www.ambest.com/ratings/methodology.
  In accordance with Regulation (EC) No. 1060/2009, the following is a link torequired disclosures: A.M. Best Europe - Rating Services Limited SupplementaryDisclosure.A.M. Best Europe - Rating Services Limited is a subsidiary of A.M. BestCompany.A.M. Best Company is the world's oldest and most authoritative insurancerating and information source. For more information, visit 
  www.ambest.com.
  Copyright  2013 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.  A.M. Best Co.Helio Correa,+(44) 20-7397-0311Financial Analysthelio.correa@ambest.comorMahesh Mistry, +(44) 20-7397-0325Directormahesh.mistry@ambest.comorRachelle Morrow, +(1) 908-439-2200, ext. 5378Senior Manager, Public Relationsrachelle.morrow@ambest.comorJim Peavy, +(1) 908-439-2200, ext. 5644Assistant Vice President, Public Relationsjames.peavy@ambest.comCopyright Business Wire 2013