AM Best affirms credit Ratings of Dubai National Insurance & Reinsurance P.S.C.

The ratings reflect DNIR's balance sheet strength, which AM Best categorises as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.


LONDON:—AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb+” of Dubai National Insurance & Reinsurance P.S.C. (DNIR) (United Arab Emirates). The outlook of these Credit Ratings (ratings) remains positive.

The ratings reflect DNIR’s balance sheet strength, which AM Best categorises as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management. The positive outlooks reflect the expectation that management will strengthen DNIR’s balance sheet components over the medium term. In particular, AM Best expects risk-adjusted capitalisation to improve to a more robust level.

DNIR’s balance sheet strength is underpinned by risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). Factored into this assessment is DNIR’s prudent reserving and an excellent level of liquidity. AM Best expects a moderate decline in the projected BCAR, driven by the payment of an extraordinary dividend of AED 86.6 million paid in the first half of 2019; despite this, AM Best expects the BCAR to recover organically over the medium term. An offsetting factor is the company’s material and concentrated exposure to large equity investments, which exposes its capital position to volatility.

DNIR’s strong operating performance reflects a track record of solid underwriting profitability, as demonstrated by a five-year (2014-2018) weighted average combined ratio of 85.5% and return on equity of 9.6% over the same period. This translates into a market ranking of No. 6 in terms of ultimate net profit out of the listed insurance companies within the United Arab Emirates (UAE). In spite of the high levels of competition in the market, AM Best expects DNIR to maintain its strong financial metrics through stringent underwriting controls and prudent risk selection.

DNIR has successfully grown its business profile while maintaining solid underwriting performance. DNIR has maintained its position as a mid-tier company in a highly competitive UAE market, writing a diversified mix of non-life lines of business.


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 Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency and information provider with an exclusive focus on the insurance industry. Visit  for more information.

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