LONDON: A.M. Best has maintained the under review with negative implications status for the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Saudi Arabian Insurance Company B.S.C. (C) (Damana) (Bahrain). The under review with negative implications status has been extended pending further review of the company’s longer-term commercial strategy.
On 13 April 2017, Damana’s Credit Ratings (ratings) were placed under review with negative implications following the discontinuation of the company’s strategic business relationship with Cigna Corporation, announced on 13 March 2017. The under review with negative implications status reflected the disruption to Damana’s business model and uncertainty regarding the outcome of the company’s strategy, as a result of losing this partnership that accounted for the majority of Damana’s premium revenue.
Since April 2017, management has discussed with A.M. Best its potential strategic initiatives; however, such plans are in the early stages of development. As a result, A.M. Best has not yet been able to evaluate the effect of these plans on the company’s ratings. The ratings will remain under review until A.M. Best has received and evaluated further information regarding the company’s future commercial strategy.
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