AM Best Affirms Credit Ratings of Oman Insurance Company P.S.C.
AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of "a" of Oman Insurance Company P.S.C. (OIC) (United Arab Emirates). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect OIC'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.
OIC's balance sheet strength is underpinned by its strongest level of risk-adjusted capitalisation, as measured by Best's Capital Adequacy Ratio (BCAR). AM Best expects prospective BCAR scores to remain comfortably in excess of the minimum required for the strongest level assessment, as the company actively manages its capital position, ensuring its capital base supports its business plans. The company's balance sheet strength is supported by its conservative investment portfolio, excellent liquidity and prudent reserving practices. An offsetting factor is OIC's high level of reinsurance dependence, albeit not as significant as other regional peers, with low retention across many lines of business. This is partially mitigated by a panel of reinsurers of high credit quality.