A.M. Best Affirms Ratings of Oman Insurance Company (PSC).OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and issuer credit rating of "a" of Oman Insurance Company (PSC (Public Service Commission) Same as PUC. ) (OIC "Oh, I see." See digispeak. (chat) OIC - oh, I see. ) (United Arab Emirates United Arab Emirates, federation of sheikhdoms (2005 est. pop. 2,563,000), c.30,000 sq mi (77,700 sq km), SE Arabia, on the Persian Gulf and the Gulf of Oman. ). The outlook for both ratings is stable. The ratings of OIC reflect its adequate level of risk-adjusted capitalisation, excellent underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. performance and established business profile in the United Arab Emirates (UAE (Uninterruptible Application Error) The name given to a crash in Windows 3.0. In subsequent versions of Windows, a crash was called a "General Protection Fault," "Application Error" or "Illegal Operation." See crash in Windows and abend. ) insurance market. An offsetting factor is the company's volatile investment performance, stemming from a weak investment strategy. In A.M. Best's opinion, OIC's risk-adjusted capitalisation remains supportive of the current ratings, despite deterioration of its fair value of investments reserves, resulting from falling equity prices. A.M. Best expects OIC's capital base to benefit from prospective changes in investment policy, which is anticipated to reduce exposure to the volatile equity markets, with a movement into more secure investments. In A.M. Best's view, further deterioration in the company's capital position is likely to increase downward pressure on the current ratings. Furthermore, OIC has established a leading market position in the UAE with a diversified portfolio for both non-life and life insurance, accounting for 15% of gross market premiums. Moreover, the company has expanded its regional profile by establishing operations in Oman and Qatar during 2008. In A.M. Best's view, OIC has experienced excellent underwriting results across all lines of business, with consistently improving technical profits of approximately AED AED - Automated Engineering Design 220 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. 60 million) in 2008, supported by an excellent combined ratio of 75%. Conversely, OIC has a weak investment strategy with significant concentration (in excess of 35% at year-end 2008) of investments in the domestic equity markets. In A.M. Best's opinion, it is vitally important for OIC to address its shortcomings A shortcoming is a character flaw. Shortcomings may also be:
For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology. 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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