Dubai Insurance Company assigned “A” Rating for Insurance Financial Strength with Stable Outlook by Fitch Ratings, London

For the first time in over five decades of operations, Dubai Insurance Company P.S.C. (DIN) has received an IFS “A” Rating with a Stable Outlook from London’s globally-renowned ratings agency Fitch Ratings (Fitch), a leader in financial information services and award-winning provider of credit ratings, commentary and research.

“This is indeed wonderful news, not only for our company but also for the entire insurance industry in the UAE”, said Mr. Abdellatif Abuqurah, DIN’s CEO. He added: “Earning an “A” Rating by one of the most renowned and trusted rating companies in the world illustrates the solid standing of our company and the trust we have managed to earn through decades of hard work, innovation, and commitment to the progress of our nation.” 

According to Fitch, DIN enjoys a strong company profile. With a gross written premium (GWP) AED1.5 billion in 2022, the company is considered the fourth largest publicly listed insurer in the UAE by GWP, offering a diversified mix of personal and commercial insurance solutions with key government contracts, including the Workers Protection Program products and the newly launched Involuntary Loss of Employment (ILOE) scheme. 

Abuqurah continued: “This is the first time in the history of DIN that we receive an “A” rating, which reinforces and validates our sound business strategy in line with Dubai Vision 2030, as well as honors our legacy of excellence, and solidifies our positioning as industry pioneers.”

In terms of DIN’s capitalization, Fitch viewed it as “Extremely Strong”, with an equally strong regulatory capital ratio of 180% at end-2022. The company’s investment risk makes up the largest individual portion of the capital requirements, noting that DIN has no financial leverage in its capital structure. Furthermore, Fitch reported that DIN boasts a “Very Strong Profitability”, with an underwriting profit of AED78 million in 2022 and a combined ratio of 81%. 

DIN’s investment portfolio has also played a role in the company’s positive rating. The later had a consistently strong return on equity (RoE) with a five-year average of 12.3%, especially with the current and foreseen success of the WPP and ILOE schemes. 

Moreover, Fitch reports that “DIN has a fairly large exposure to equity investments at 47% of its investment portfolio at end-2022. Cash and bank deposits make up a further 41% of the investment portfolio, making the overall portfolio highly liquid, although DIN also has a 9% exposure to real estate investments. The company's Fitch-calculated risky assets/capital ratio was 72% at end-202) with risky assets being made up almost entirely of equities.”

Last but not least, DIN adopts a prudent reserving philosophy with reserves held in excess of actuarial valuation, which has contributed as well to the company’s positive assessment. It was also found by Fitch that DIN enjoys a “Strong Reinsurance Panel” led by  large globally diversified reinsurers .

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