AM Best, the global credit rating agency, has affirmed the credit rating of SNIC Insurance at B+ (Good) and its long-term credit rating at bbb-, with a negative outlook.

This rating is consistent with last year’s assessment, reinforcing the company’s strong financial position and its ability to meet its obligations in the market.

SNIC Insurance is a subsidiary of the EA Juffali & Brothers Group, one of the leading commercial enterprises in Saudi Arabia and Munich Re, the world’s largest reinsurance company.

The financial results for SNIC Insurance show a steady improvement despite challenges faced between 2019 and 2023, with the return on equity (RoE) changing from -11.9 per cent to 22.8pc.

While the company experienced some minor losses in its technical performance, it recorded notable improvements in its investment portfolio.

The Combined Ratio stood at 104.6pc, attributed to increased expenses related to the strategic vision of expanding market share and diversifying the insurance portfolio.

Investments in digital transformation and cybersecurity have bolstered customer trust and business continuity. Alongside these developments, the company has continued the investment in human resources to ensure professional and reliable insurance services.

SNIC Insurance continues to implement strategic measures aimed at improving its performance in the coming years, leading to a remarkable improvement in technical profitability in 2024.

These actions are expected to positively impact the company’s financial outlook and future performance, with a continued focus on digitalization strategies, portfolio diversification, and expanding strategic partnerships.

Commenting on the rating, Khalid Alshaikh, general manager of SNIC Insurance, said: “AM Best’s credit rating reflects our solid financial stability and ability to honour our commitments to customers in both the immediate and distant future. This recognition strengthens the trust of our customers and partners, reinforcing our reputation as a reliable and responsible insurer.

“Furthermore, we are confident that the corrective measures we have undertaken will pave the way for a stable outlook in the near horizon. These initiatives are designed to enhance our operational efficiency, improve our service offerings, and ensure we are well-positioned to navigate any challenges ahead.”

Mr AlShaikh added, “As we advance, we are committed to providing outstanding value to our customers while maintaining the utmost standards of integrity, excellence, and strengthening strategic partnerships to elevate the company’s market presence.”

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