CONTACTS:
FOR IMMEDIATE RELEASE
LONDON - AUGUST 18, 2017 11:00 AM (EDT)
A.M. Best has affirmed the Financial Strength Ratings of B+ (Good) and the Long-Term Issuer Credit Ratings of “bbb-” of Muscat Insurance Company SAOC (MIC) and Muscat Life Assurance Company SAOC (MLAC). Both companies are subsidiaries of Muscat National Holding Company SAOG (MNHC), a non-operating holding company. All companies are domiciled in Oman. The outlook of these Credit Ratings (ratings) remains stable. Concurrently, A.M. Best has withdrawn the ratings, as the companies have requested to no longer participate in A.M. Best’s interactive rating process.
The rating affirmations reflect MIC’s and MLAC’s strong risk-adjusted capitalisation and track record of good operating performance. Offsetting rating factors are the limited business profiles held by MIC and MLAC within the Omani insurance market. The ratings of MLAC continue to receive rating enhancement as a result of its continued strategic importance in MNHC.
MIC’s strong risk-adjusted capitalisation is sustained by the company’s low underwriting leverage and conservative investment portfolio. MIC has continued to build on its track record of good operating performance, reporting pre-tax operating profits of OMR 1.1 million in 2016 (2015: OMR 0.9 million). Whilst the company has experienced a 10% increase in its gross premiums in 2016, MIC’s business profile remains limited within Oman’s highly competitive non-life insurance market.
MLAC’s risk-adjusted capitalisation further strengthened during 2016 as a result of a reduction in real estate holdings. MLAC has continued to demonstrate good operating performance, with pre-tax profits of OMR 481,000 in 2016 (2015: OMR 365,000). Despite recent growth in the company’s premium revenue, MLAC’s overall size and scale remains marginal.
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.