Summary: Salama/Islamic Arab Insurance Co. (P.S.C.)

S&P Global Ratings' 'BBB-' issuer credit rating on Islamic Arab Insurance Co. (P.S.C.) (Salama) reflects its position as the largest sharia-compliant insurer in the UAE, with extremely strong capital adequacy, but constrained by historically volatile operating performance and a relatively high-risk investment portfolio. After two years of significant net losses in 2015 and 2016, resulting from major losses in UAE motor portfolio and Best Re, Salama's dedicated efforts to control the loss-making business has helped it stabilize its operating performance and bring the company back to profitability since 2017. As a result of Salama's efforts to turnaround the business to profitability, its exposure in terms of gross premiums from Algeria and Egypt has increased proportionately, thereby exposing Salama to higher

...S&P Global Ratings' '###-' issuer credit rating on Islamic Arab Insurance Co. (P.S.C.) (Salama) reflects its position as the largest sharia-compliant insurer in the UAE, with extremely strong capital adequacy, but constrained by historically volatile operating performance and a relatively high-risk investment portfolio. After two years of significant net losses in 2015 and 2016, resulting from major losses in UAE motor portfolio and Best Re, Salama's dedicated efforts to control the loss-making business has helped it stabilize its operating performance and bring the company back to profitability since 2017. As a result of Salama's efforts to turnaround the business to profitability, its exposure in terms of gross premiums from Algeria and Egypt has increased proportionately, thereby exposing Salama to higher industry and country risk. While Salama's management considers the drop in UAE business as temporary, the interim exposure to higher-risk markets in Africa, in line with Salama's diversification...

Summary