42 C
Thursday, July 25, 2024

Fitch Awards Dubai Insurance an “A” Rating-1

Dubai Insurance In a groundbreaking development spanning over five decades, Dubai Insurance Company (DIN) has secured an IFS “A” rating with a stable outlook from Fitch Ratings, marking a historic milestone in the company’s operations.

CEO’s Pride and Commitment

Abdellatif Abuqurah, DIN’s CEO, expressed pride in the achievement, stating, “Earning an ‘A’ Rating by one of the most renowned and trusted rating companies in the world illustrates the solid standing of our company and the trust we have managed to earn through decades of hard work, innovation, and commitment to the progress of our nation.”

Robust Company Profile and Market Position: Dubai Insurance

Fitch Ratings highlighted DIN’s robust company profile, positioning it as the fourth largest publicly listed insurer in the UAE by gross written premium (GWP). The company’s diverse range of personal and commercial insurance solutions includes key government contracts such as the Workers Protection Program products and the newly launched Involuntary Loss of Employment (ILOE) scheme.

Significance of the Achievement

Abuqurah emphasized the significance of this achievement, stating, “This is the first time in the history of DIN that we receive an ‘A’ rating, which reinforces and validates our sound business strategy in line with Dubai Vision 2030, as well as honors our legacy of excellence and solidifies our positioning as industry pioneers.”

Financial Strength and Performance Metrics

Fitch Ratings assessed DIN’s capitalization as “Extremely Strong,” with a regulatory capital ratio of 180% at the end of 2022. The company demonstrated “Very Strong Profitability,” reporting an underwriting profit of Dh78 million in 2022 and a combined ratio of 81%.

Positive Ratings Due to Investment Portfolio

The positive rating is attributed to DIN’s investment portfolio, showcasing consistently strong returns on equity (RoE) with a five-year average of 12.3%. The success of the Workers Protection Program (WPP) and Involuntary Loss of Employment (ILOE) schemes further contributed to the favorable rating.

Detailed Financial Assessment

Fitch Reports highlighted DIN’s investment portfolio composition, noting a fairly large exposure to equity investments at 47% and a highly liquid overall portfolio, with cash and bank deposits making up 41%. The company’s Fitch-calculated risky assets/capital ratio was 72% at the end of 2022, primarily comprising equities.

Implications and Industry Recognition: Dubai Insurance

This achievement marks a significant milestone for Dubai Insurance Company, showcasing its financial strength, strategic alignment with Dubai Vision 2030, and commitment to excellence in the insurance industry. The “A” rating from Fitch solidifies DIN’s position as a trusted and leading player in the market.

Also Read

“Bollywood Star Anil Kapoor Unveils Travel Show: ‘Once Upon A Trip! To Dubai’”-1

Income Distribution Survey to Uncover UAE Average Family Expenditure.-1

Related Articles

Alert Smart City: An Investment Opportunity to Revolutionize Crisis Communication in the Era of Climate Change

Leadership in Urban Resilience: The Journey of a Smart City in Crisis Communication Since its inception in 2019, Alert Smart City has been at the...

Srikanth Ravinutala and Adaapt AI : A Journey of Digital Transformation

Introduction Adaapt AI, led by Srikanth Ravinutala, is a pioneering AI-driven platform designed for digital transformation heads, enabling seamless adaptation to new technologies. By...

Explore the GCC’s Newest AI Innovation for Transforming Your Social Media Strategy!

Ardalan Zadehsoltan, founder and CEO of Unlock AI, launched the company to address social media management challenges faced by clients. With a background in...

Sreshta Farmer Producer Company Limited: Pioneering Technology-Driven Farming in Andhra Pradesh

Introduction to Sreshta Farms Sreshta Farmer Producer Company Limited (Sreshta Farms) was established in Kollipara, Andhra Pradesh, with the vision of creating a technology-driven agricultural...

Blockchain Life 2024 in Dubai Unveils First Speakers, Featuring Industry Leaders from Tether, Ledger, TON, Animoca Brands and More

Blockchain Life 2024 in Dubai Unveils First Speakers, Featuring Industry Leaders from Tether, Ledger, TON, Animoca Brands and More Blockchain Life 2024, one of the...

Latest Articles