Abu Dhabi – Mubasher: Standard & Poor's (S&P) Global Ratings announced it has affirmed its long-term insurer financial strength and issuer credit ratings on the UAE-based Ras Al-Khaimah National Insurance Co (RAK Insurance) at 'BBB+', with a ‘stable’ outlook.
The stable outlook came in line with S&P’s expectations that RAK Insurance will maintain capital adequacy at least at the ‘AA’ level, according to a press release.
The outlook is likely to bolster the insurer’s growth plans in the UAE over the coming two years, the American rating agency highlighted.
The agency also expected that RAK Insurance will remain independent from its parent, National Bank of Ras Al Khaimah (RAK Bank), in terms of operations and finance.
S&P may downgrade the insurer’s ratings over the next two years if its capital adequacy materially contracted to below the ‘AA’ level.
It is worth noting that in the first six months of 2019, RAK Insurance reported a net profit of AED 4.5 million, compared to AED 7.5 million in the corresponding period of 2018.