Abu Dhabi – Mubasher: Moody's Investors Service on Tuesday affirmed the A3 insurance financial strength rating (IFSR) of Abu Dhabi-based Al-Ain Ahlia Insurance Co. (AAAIC) and gave the firm a ‘Stable’ outlook.

The rating affirmation reflects AAAIC’s strong market position in the UAE insurance market as well as its “good technical experience in the oil and gas business lines combined with a good cooperation with major international reinsurers,” the ratings agency said.

The Abu Dhabi-listed firm has an excellent capital position “with gross underwriting leverage at 0.8x in 2014,” Moody’s said.

AAAIC also has a strong underwriting profitability with a five-year average combined ratio of 88% in 2014, Moody’s added.

The ratings firm noted that AAAIC’s strengths are tempered by a high risk investment strategy, with large investment in equities and real estate as well as the company’s focus on Abu Dhabi (Aa2, ‘Stable’), “which creates geographic concentration risk and reliance on the Abu Dhabi economic performance.”