In its statement, Fitch said that the revision of the outlook from stable to positive reflects Tawuniya's improving financial performance in the first half of 2022 driven by the company's prudent pricing and underwriting standards, strong capitalization, strong business profile as 'Most Favorable' compared to that of other Saudi Arabian insurance companies, leading insurance business franchise within its sector, strong competitive advantages and improved reserve adequacy.

Fitch expects Tawuniya to maintain its strong operating performance and competitive position within the local market, while gradually improving its capital adequacy.