A.M. Best Affirms Ratings of Qatar General Insurance and Reinsurance Company (S.A.Q.).OLDWICK, N.J. -- A.M. Best Co. has affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. the financial strength rating of B++ (Very Good) and the issuer credit rating (ICR (Intelligent Character Recognition or Image Character Recognition) The machine recognition of hand-printed characters as well as machine printing that is difficult to recognize. ) of "bbb" of Qatar General Insurance and Reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. Company (S.A.Q.) (QGIR) (Qatar). The outlook for both ratings remains stable. The ratings reflect QGIR's maintenance of strong risk-adjusted capitalisation n. 1. same as capitalization. Noun 1. capitalisation - writing in capital letters capitalization writing - letters or symbols that are written or imprinted on a surface to represent the sounds or words of a language; "he turned the paper in 2006 and 2007 supported by solid 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. . A.M. Best believes that the absolute level of capital and surplus will be sufficient to absorb the significant forecasted growth in net premiums written of approximately 45% at year-end 2006, largely due to QGIR's new business, particularly in respect to energy and motor portfolios. The company's main accounts are energy, motor and engineering business, with approximately 95% of business emanating from Qatar and the balance from Dubai. In A.M. Best's opinion, QGIR is well positioned to take advantage of the new business available as a result of strong economic growth in Qatar, where it has approximately 30% of the market share. However, A.M. Best will closely monitor the company's business position following the opening up of the local market to broker and foreign insurance companies, although this is unlikely to impact QGIR's business position during the next two years. In A.M. Best's opinion, the company's combined ratio during the next two years is likely to remain in line with the 2005 level of 80.4%, as the motor business will continue to impact the overall technical performance. Despite the significant fall in the Doha Securities Market The Doha Securities Market is the principal stock market of Qatar. The market was founded in 1997 and is located in the capital city of Doha. Its name is abbreviated to DSM. The DSM's principal stock index is the DSM-20, composed of 20 major company listings, or equities. (local equity market), A.M. Best expects QGIR's investment returns to remain very good and increase to approximately 15% at year-end 2006 (compared to 10.5% in 2005) due to significant gains on the sale of the company's real estate portfolio. For Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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