Dubai – Mubasher: AM Best has affirmed the financial strength rating of Dubai Insurance Company (DIN) at “A-“, the agency said in a report released on Thursday.

The specialist insurance ratings firm has also confirmed DIN’s long-term issuer credit rating at “a-“, with a stable outlook.

The new rating reflects the company’s balance sheet strength, robust operating performance, limited business profile, and appropriate enterprise risk management, the statement added. 

“DIN’s balance sheet strength is assessed as very strong, underpinned by risk-adjusted capitalisation at the strongest level, with Best’s Capital Adequacy Ratio (BCAR) scores comfortably in excess of 50% at the 99.6% confidence level,” the report highlighted.

The balance sheet strength assessment also factors in DIC’s high dependence on reinsurance, as evidenced by a retention ratio of approximately 21% in 2018. 

AM Best noted that DIN has promoted its market position successfully in a highly competitive market without compromising technical profitability. 

“The company has a track record of solid operating performance as demonstrated by an excellent five-year (2014-2018) weighted average combined ratio of 75.9%,” the report added.

In 2018, DIN posted a technical profit of AED 43.2 million, compared to AED 28.6 million a year earlier.

The introduction of the MOHRE product has contributed positively to the company’s technical earnings.