A.M. Best affirms ratings of National General Insurance Company

21/05/2011 00:00 AST

A.M. Best Europe - Rating Services Limited has affirmed the financial strength rating of B++ (Good) and the issuer credit rating of "bbb+" of National General Insurance Company (P.S.C.) (NGI)(United Arab Emirates). The outlook for both ratings remains stable.

Both ratings continue to be supported by the company's very strong risk-adjusted capitalization, long track record of generating sound technical profits and its developing franchise in the UAE. An offsetting factor is the company's volatile investment returns.

NGI ranks as a medium-sized composite insurer in the region and continues to achieve growth. The company is currently embarking on a co-branded venture with Aviva plc, which in addition to NGI's own efforts in developing distribution channels, should help maintain NGI's position and support future growth.

In A.M. Best's opinion, NGI's risk-adjusted capitalisation is very strong with sufficient room to absorb planned growth over the next two years. The company has demonstrated good internal capital generation ability, with a long track record of generating sound returns, supported by consistently good underwriting performances.

However, A.M. Best notes that overall earnings are affected by volatility in investment income.

The principal methodology used in determining these ratings is Best's Credit Rating Methodology -- Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best's rating process and highlights the different rating criteria employed.

Additional key criteria utilised include: "Understanding Universal BCAR"; "Update to BCAR for Life & Health Insurers"; and "Assessing Country Risk".

In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M. Best Europe - Rating Services Limited Supplementary Disclosure.

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