Dubai Insurance Company (DIN) has received an IFS “A” rating with stable outlook from the world-renowned London rating agency Fitch Ratings (Fitch), a leader in financial information services and an award-winning provider of credit ratings, commentary and research.
According FitchDIN enjoys a strong business profile with a gross written premium (GWP) of AED 1.5 billion in 2022. GWP considers the company the fourth largest listed insurer in the UAE and offers a diversified mix of personal insurance solutions and commercial with key government contracts, including worker protection program products and the recently launched involuntary loss of employment (ILOE) scheme.
Abdellatif Abuqurah, CEO of DIN, said that earning an “A” rating from one of the most recognized and trusted rating companies in the world illustrates the strong position of our company and the trust we have earned through decades of hard work, innovation and commitment to progress of our nation.
“This is the first time in DIN’s history that we have received an ‘A’ rating, which reinforces and validates our strong business strategy in line with Dubai Vision 2030, as well as honoring our legacy of excellence and solidifying our positioning as an industry. pioneers”,
In terms of NOISE’capitalization, Fitch They rated it as “extremely strong,” with an equally strong regulatory capital ratio of 180 percent by the end of 2022. The company’s investment risk makes up the largest single share of capital requirements, taking into account that DIN has no financial leverage in its capital structure. Besides, Fitch reported that DIN boasts “very strong profitability,” with an underwriting profit of AED 78 million in 2022 and a combined ratio of 81 percent.
NOISEThe investment portfolio has also contributed to the company’s positive rating. The latter had a consistently strong return on equity (RoE) with a five-year average of 12.3 per cent, especially with the current and anticipated success of the WPP and ILOE schemes.
Besides, Fitch reported that
“DIN has a fairly large exposure to equity investments, with 47 percent of its investment portfolio at the end of 2022. Cash and bank deposits represent another 41 percent of the investment portfolio, making the portfolio is generally very liquid, although DIN also has a 9 percent exposure to real estate investments.
News source: Emirates News Agency