The ratings reflect Egypt-based insurance group’s balance sheet strength.
A.M. Best has affirmed the financial strength rating of B++ on Arab Misr Insurance Group maintaining a stable outlook.
In a statement, AM Best, said Arab Misr Insurance’s positive rating is a reflection of its healthy balance sheet which it was categorised as very strong. The rating is coupled with strong operating performance, limited business profile and appropriate enterprise risk management.
Arab Misr Insurance Group are also boosted by the financial strength of its parent company Gulf Insurance Group.
The company’s capital requirements are driven by investment risks with approximately one-third of the company’s investments held in government treasury bills and the bulk of these treasury bills mature between three to 12 months, the liquidity of these assets allows the company to react to changes in market conditions.
Despite challenging economic pressures and intense competition in the company’s domestic market, Arab Misr Insurance Group’s operating performance remains strong posting an excellent track record generating an average 78 per cent technical and operating profits in the last five-years.
Moreover, the insurance company withstood Egypt’s high inflation environment recording a 24.5 per cent equity supported by robust investment returns.