AM Best


A.M. Best Affirms Ratings of Alliance Insurance (PSC)


CONTACTS:

Salman Siddiqui, ACA
Senior Financial Analyst
+44 20 7397 0311
salman.siddiqui@ambest.com

Mahesh Mistry
Director, Analytics
+44 20 7397 0325
mahesh.mistry@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Assistant Vice President, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

LONDON - AUGUST 25, 2016 11:08 AM (EDT)
A.M. Best has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of “a-” of Alliance Insurance (PSC) (Alliance) (United Arab Emirates). The outlook for each rating remains stable.

The ratings reflect Alliance’s strong risk-adjusted capitalisation, stable overall profitability and moderate business profile.

Alliance maintains strong risk-adjusted capitalisation that benefits from low underwriting leverage, a conservative investment portfolio and a reinsurance program of good credit quality. In recent years, internal capital generation has outpaced increasing capital requirements, thereby strengthening Alliance’s risk-adjusted capitalisation. A.M. Best expects internal capital generation from strong underwriting performance to adequately support increasing capital requirements, as the company grows its franchise over the coming years.

Alliance has demonstrated a track record of excellent profitability, with overall earnings reaching AED 44 million (USD 12 million) in 2015, equivalent to a return on equity of 10%. Alliance’s earnings are supported by a solid underwriting performance, with life business producing a 12% gross profit margin and non-life achieving a strong combined ratio of 75%. Furthermore, Alliance’s profitability is supplemented by a conservative and stable investment profile that yielded a 5% return in 2015.

Alliance is a medium-size composite insurance company operating in the United Arab Emirates. The company has a balanced profile, providing life and general insurance products. Alliance’s premium retention on non-life business remains low, emphasising its high level of reinsurance dependence. Overall, gross premiums declined 5% in 2015 to AED 306 million (USD 83 million), as the company cancelled loss-making contracts to focus on bottom-line profitability.

This press release relates to rating(s) 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.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source.


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AMB# Company Name
078732 Alliance Insurance (PSC)