A.M. Best Assigns Ratings to National Life Insurance Company SAOC (Oman).

OLDWICK, N.J. -- A.M. Best Co. has assigned a financial strength rating of B+ (Very Good) and an issuer credit rating (ICR) of "bbb-" to National Life Insurance Company SAOC (NLIC) (Oman). The outlook for both ratings is stable.

The ratings reflect NLIC's established share of its domestic market and strong risk-adjusted capitalisation. An offsetting factor is an anticipated deterioration in the company's business profile, which is expected to result from a move towards a riskier product--medical protection.

A.M. Best expects NLIC to maintain its very good business position in Oman as the leading life insurer with approximately 45% market share of gross written premium. NLIC provides group life creditor business, life assurance, investment and medical protection products.

A.M. Best believes NLIC's risk-adjusted capitalisation is strong relative to its size and that capital and surplus will likely be sufficient to absorb an anticipated 50% increase in net written premium in 2005, mainly from large group medical protection business. The absolute amount of capital and surplus is small, however, when compared to other life companies.

The company began writing medical protection in 2003 and it is expected to represent approximately 30% of NLIC's written premium in 2005. A.M. Best anticipates that underwriting performance will deteriorate in 2005 and 2006, from a good level in 2004, due to NLIC's lack of experience in group medical protection products.

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A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source.

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