Riyadh - Mubasher: Moody's Investors Service has assigned an A3 insurance financial strength rating (IFSR) to Walaa Cooperative Insurance Company, with a stable outlook.
The rating reflects the company’s strong market position and brand, as the sixth largest player in the Saudi Arabian insurance market with a 3.1% market share in terms of gross premium written in 2017, a strong asset quality, driven by a conservative investment strategy with high risk assets (HRA), and a strong capital adequacy level, the research firm said in a report on Tuesday.
“However these strengths are partially constrained by the increasingly competitive Saudi Arabian property and casualty insurance market.
“Furthermore Walaa is more concentrated and thus exposed to the market's most competitive lines of motor and medical. However, given the company's focus and controls around underwriting,” the report noted.
Moody’s believe that the stable rating outlook reflects an expectation that Walaa will maintain its improved profitability by profitably growing the business and thereby further aid its capital adequacy.
