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AM Best Affirms Credit Ratings of Abu Dhabi National Insurance Company P.J.S.C.

AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of Abu Dhabi National Insurance Company P.J.S.C. (ADNIC) (United Arab Emirates) [UAE]. The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect ADNIC’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.

ADNIC’s balance sheet strength is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), at the strongest level. AM Best expects ADNIC’s BCAR scores to remain comfortably at prospectively the strongest level, supported by internal capital generation. The company’s balance sheet strength assessment also benefits from its excellent liquidity position and good financial flexibility. An offsetting factor in the balance sheet strength assessment is ADNIC’s dependence on reinsurance to write large commercial risks; however, the associated credit risk is mitigated partially by the use of a diversified reinsurance panel of sound financial strength.

ADNIC has a track record of strong operating performance, illustrated by a five-year (2018-2022) weighted average return-on-equity ratio of 13.8%. The company’s earnings primarily benefit from robust non-life underwriting results, with a five-year average combined ratio of 83.0%, as calculated by AM Best. ADNIC’s underwriting performance is further supported by its life insurance portfolio, which contributes positively to the company’s technical results. In 2022, despite heightened competition in the UAE insurance market, ADNIC reported a profit after tax of AED 377.9 million, equivalent to a return-on-equity of 13.7%, as the company maintained a strong underwriting performance.

ADNIC has a market leading position in the UAE, where it ranks as the second-largest insurance company by gross written premium (GWP), among listed insurers. In 2022, the company’s GWP increased to AED 5.1 billion (USD 1.3 billion) (2021: AED 4.3 billion), driven by growth in its commercial lines business. ADNIC writes a well-diversified portfolio by line of business, although there is a weighting toward domestic medical business on a net premium basis. Geographic concentration in the UAE is mitigated partially by inward facultative and treaty business from the international market.

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

Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


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