Riyadh – Mubasher: Moody's Investors Service has affirmed the A3 insurance financial strength rating (IFSR) of Walaa Cooperative Insurance Company (Walaa).
Moody's changed Walaa’s outlook to negative from stable, according to a statement.
The rating followed the signature of a non-binding memorandum of understanding (MoU) with Metlife AIG ANB to negotiate a potential merger between both companies.
“The change in outlook to negative from stable reflects the short-term downside risks that the merger poses to Walaa's underwriting profitability, given the loss-making history of Metlife AIG ANB,” Moody's revealed.
In May, the extraordinary general assembly (EGM) of Walaa approved a 20% capital hike via issuing bonus shares.
