LONDON: AM Best has assigned a Financial Strength Rating of A (Excellent) and a Long-Term Issuer Credit Rating of “a” (Excellent) to Abu Dhabi National Insurance Company P.J.S.C. (ADNIC) (United Arab Emirates). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect ADNIC’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

ADNIC’s balance sheet strength is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), at the strongest level. AM Best expects ADNIC’s BCAR scores to remain comfortably at the strongest level, supported by good earnings retention and controlled growth. The company benefits from a liquid investment portfolio and good financial flexibility. An offsetting factor in the balance sheet strength assessment is ADNIC’s dependence on reinsurance to write large commercial risks; however, the risks associated with this dependence are mitigated partly by a panel of mostly well-rated reinsurers.

ADNIC has a track record of strong operating performance, demonstrated by a five-year (2016-2020) weighted average return-on-equity ratio of 13.2%. Strong operating performance is underpinned by robust underwriting results, with a five-year average combined ratio of 85.6%. Following five years of improving profitability, the company reported its highest profit after tax since inception of AED 371 million in 2020, aided by reduced claims frequency on its large medical portfolio. AM Best expects the company’s operating performance to remain strong prospectively, supported by disciplined underwriting and stable investment results.

ADNIC has a market leading position in the UAE, where it ranks as the second largest insurance company by gross written premium (GWP). In 2020, the company’s GWP increased marginally to AED 4.0 billion (2019: AED 3.8 billion), driven by growth in commercial lines business. ADNIC is well-diversified by line of business on a GWP basis, but concentrated in medical on a net premium basis. Geographic concentration in the UAE is partly mitigated by inwards facultative business from the international market.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments. 

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

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