AM Best Affirms Credit Ratings of Dubai Insurance Company (PSC)

AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of Dubai Insurance Company (PSC) (DIN) (United Arab Emirates). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect DIN’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

DIN’s balance sheet strength is underpinned by its risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), which has been supported by strong organic capital generation historically. The assessment factors in the company’s sufficient liquidity and history of prudent reserving. An offsetting factor in the balance sheet strength assessment is DIN’s high reinsurance dependence. The associated counterparty credit risk is mitigated partially by the use of a panel of financially sound reinsurance partners. The assessment also considers the material share of equity holdings in DIN’s investment portfolio and its exposure to fair value fluctuations, which introduces the potential for volatility in capital and surplus.

DIN has a track record of strong operating performance supported by robust underwriting results and steady investment income. In 2024, under IFRS 17, the company generated a net-net combined ratio of 93.2% (as calculated by AM Best), which was higher than in the prior year. The increase in combined ratio is driven primarily by the company’s motor portfolio, which was impacted by the unprecedented rains in 2024 and challenging market conditions. The earnings of the Workers Protection Plan (WPP) and the Involuntary Loss of Employment (ILOE) products continued to make a material contribution to the company’s technical results, due to low loss experience and significant inward reinsurance commissions.

In recent years, DIN has enhanced its market position in a highly competitive market without compromising technical profitability. The successful roll out of the consortium managed products, which include the WPP and ILOE, has diversified DIN’s business mix, which historically was concentrated primarily in motor and medical segments in line with other domestic insurers, and has consequently assisted DIN in materially growing its topline.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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