A.M. Best Affirms Ratings of Arab Orient Insurance Company.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of B+ (Good) and issuer credit rating of "bbb-" of Arab Orient Insurance Company (Arab Orient) (Jordan). The outlook for both ratings is stable. The ratings reflect Arab Orient's strong risk-adjusted capitalisation, leading business position in its domestic market and good operating performance. Arab Orient's prospective risk-adjusted capitalisation is expected to remain strong over the next two years, with significant retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. to support its strategic business plan, with projected growth of up to 15% per annum Per annum Yearly. . A.M. Best believes that Arab Orient has a very good business position in Jordan, establishing itself as a market leader with an approximate 9% share of gross premiums written When a non-life insurance company closes a contract to provide insurance against loss, the revenues (premiums) expected to be received over the life of the contract are called gross premiums written. in 2007. The company's portfolio reflects local market characteristics, with approximately 65% of gross written premiums dominated by medical healthcare and motor risks. Arab Orient's operating performance has been good, with pre-tax profits of JOD JOD In currencies, this is the abbreviation for the Jordanian Dina. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 1.9 million (USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 2.7 million) in 2007, compared to JOD 1.8 million (USD 2.5 million) in 2006, arising from stable underwriting income Underwriting income For an insurance company, the difference between the premiums earned and the costs of settling claims. , with combined ratios below 90% and modest returns on investments. For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com. |
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