Standard & Poor's (S & P), the world's leading financial and credit rating agency, has affirmed its outstanding rating for the Company for Cooperative Insurance “Tawuniya” in 2017, granting it an "A-" rating with a "stable" outlook, the highest rating among insurance companies operating in Saudi Arabia.
In its report, S & P stated that Tawuniya’s strong performance, coupled with its earnings in 2016 and the first half of 2017 were key factors in the high rating. Tawuniya's risk based capital adequacy has further improved, reflecting strengthened capital position and competitive position as the leading insurance company in the Saudi market, according to the report.
S&P further noted that Tawuniya’s high rating is aligned with the sovereign ratings on Saudi Arabia, given that Tawuniya operates only in Saudi Arabia. The stable outlook on Tawuniya reflects that on the sovereign rating on Saudi Arabia and S&P expectation that the Company will maintain its competitive advantage in the local market.
Tawuniya CEO Mr. Abdul-Aziz Al-Boug expressed his appreciation and pride in being granted such a high rating by the leading international rating agency, adding that the rating affirms the great potential of Tawuniya in providing insurance protection to individuals and businesses that is on par with the highest international standards.
He added: “For 12 consecutive years, Tawuniya has maintained a distinguished global credit rating as a result of the company’s family and employees’ cumulative efforts, clear strategic vision, the ability to innovate new programs and services. These are the key factors that have enabled the company to grow year after year.”
Al Boug further stressed the importance of such a high credit rating for the company as it reflects strong confidence in a company's financial capabilities, technical expertise and its ability to provide wide-ranges and sufficient insurance cover for large economic projects. As a result, Al-Bourg noted, it gives clients full confidence in their dealings, reassures stockholders in their investment in the company and satisfies requirements to work with global re-insurance companies.
It is worth mentioning that Tawuniya achieved a strong performance in 2016, as its gross premiums amounted to SR 8.1 billion, achieving the highest market share of 22%. The net income increased to SR 733, the shareholders' equity amounted to SAR2.9 billion and the total assets raised to SR 13.5 billion. As a result of the profitable earnings, Tawuniya's capital adequacy improved to the 'AA' level in S&P model from 'BBB' previously.
© Press Release 2017