Mubasher: Moody's Investors Service has affirmed the Baa2 insurance financial strength rating (IFSR) for Buruj Cooperative Insurance Company, and changed the outlook to positive from stable.

The change in outlook to positive for Buruj reflects its improved and sustained strong profitability, capitalisation, and a marginally strengthened mid-market position and brand.

Buruj will maintain its improved profitability and mid-market position and thereby further grow and aide its capital adequacy. Moody's expects to resolve the positive outlook for Buruj in the next 12 months, the research firm said in its note issued on Wednesday.

Moody’s also explained that the affirmation of the Baa2 rating reflects Buruj's strong asset quality, with the vast majority of investments held as cash, bank deposits and investment grade Islamic sukuk bonds, translating to a low high risk assets (HRA) as a percentage of consolidated equity of 29.7% at YE 2017; and an improving sophistication in reserving with actuarial-led reserve setting and monitoring.