Bahrain-based Saudi National Insurance Company (SNIC) has had its insurer financial strength and counterparty credit ratings affirmed as ‘BBB’ and outlook as ‘stable’ by Standard & Poor’s.

The agency said this was due to SNIC sufficient capital base to absorb higher level of capital and earnings volatility, said a report in the Gulf Daily News (GDN), our sister publication.

S&P said factors that support this rating are the company’s management, governance, enterprise risk management (ERM) and liquidity. The insurance firm’s financial risk profile has been revised to upper adequate from moderately strong due to combined risks relating to its current and potential strategic investments.

S&P expects SNIC’s business model will continue to develop in Bahrain and across GCC.

The ratings agency considers that SNIC shareholders - E A Juffali, Munich Re and Zurich Insurance Company - would remain highly committed and supportive of activities in which they have relevant expertise and good market insights.

SNIC general manager Khalid Al Shaikh said it was a matter of pride that the company had maintained its credit rating of “BBB” and “stable” outlook for the past five years despite the challenging local and global market conditions. - TradeArabia News Service