The ratings on Salama/Islamic Arab Insurance Co. (P.S.C.) (Salama/IAIC) of Dubai, United Arab Emirates (UAE), reflect its strong financial and good business profiles, which are based on reasonably strong earnings, capitalization, and liquidity; a good, increasingly diversified competitive position; and good investments and financial flexibility. Together with its subsidiaries, Salama/IAIC also benefits from the support of influential UAE and Saudi Arabia-based shareholders. Our principal concern is management's somewhat aggressive investment strategies in a region where asset values can be very volatile. Inevitably, some uncertainty also surrounds the group's ambitious strategies for expansion. If successful, the group will further diversify both revenues and earnings. However, competition is considerable and it may be several years before the success of the planned expansion
