In its annual set of ratings of insurance firm in the Arab world covering 2008, insurance rating agency i.e. Muhanna & co Rating Services reaffirmed the 'A' financial strenght rating of ADIR Insurance sal, the insurance affiliate of the Byblos Bank Group.
ADIR came in the 'secure' category, which includes insurers with a sound and balanced capacity to meet policyholders' obligations.
It downgraded Arabia Insurance Company's financial strenght rating to 'A' from 'A+' due to an increase in underwriting exposure, increase in the combined ratio and decrease in shareholders' equity. The agency reaffirmed the Mediterranean & Gulf Insurance and Reinsurance Co. sal (MEDGULF Lebanon) financial strenght rating of 'A-', adding that the rating is based on high underwriting exposure and low liquidity.
The agency said the financial strenght of ADIR is based on a good level of liquidity and good level of earnings & underwriting results.
Further, it downgraded the financial strenght ratings of Assurex to 'BBB' from 'BBB+' and CLA to 'BBB+' from 'A-' due to higher underwriting exposure and lower liquidity. It also downgraded Arab Re to 'BBB' from 'BBB+' due a slight increase in underwriting exposure and in its combined ratio. Further, it maintained the rating of United Commercial Assurance at 'A-' due to favorable underwriting exposure, good liquidity, good underwriting profitability and a good capital structure. It also maintained the rating of ALIG at 'BBB-' due to high levels underwriting exposure and unfavorable underwriting profitability. In parallel, it upgraded the ratings of Victoire Insurance Co to 'BBB+' from 'BBB' due to a decline in underwriting exposure and an increase in liquidity. Finally, it raised the financial strenght rating of LIA Insurance to 'A+' from 'A' due to an increase in shareholder's equity.