DUBAI: Dubai Insurance Company (DIN) has received an IFS ‘A’ Rating with a Stable Outlook from London’s globally-renowned ratings agency Fitch Ratings (Fitch), a leader in financial information services and award-winning provider of credit ratings, commentary and research.
According To Fitch, DIN enjoys a strong company profile with a gross written premium (GWP) of AED1.5 billion in 2022. The company is considered the fourth largest publicly listed insurer in the UAE by GWP, offering a diversified mix of personal and commercial insurance solutions with key government contracts, including workers protection programmee products and the newly launched involuntary loss of employment (ILOE) scheme.
Abdellatif Abuqurah, CEO of DIN, said that earning an ‘A’ Rating by one of the most renowned and trusted rating companies in the world “illustrates the solid standing of our company and the trust we have managed to earn through decades of hard work, innovation, and commitment to the progress of our nation.’
‘This is
the first time in the history of DIN that we receive an ‘A’ rating, which reinforces and validates our sound business strategy in line with Dubai Vision 2030, as well as honors our legacy of excellence, and solidifies our positioning as industry pioneers,” Abuqurah added.
In terms of DIN’s capitalisation, Fitch viewed it as ‘Extremely Strong’, with an equally strong regulatory capital ratio of 180 percent at end of 2022. The company’s investment risk makes up the largest individual portion of the capital requirements, noting that DIN has no financial leverage in its capital structure. Furthermore, Fitch reported that DIN boasts a ‘Very Strong Profitability’, with an underwriting profit of AED78 million in 2022 and a combined ratio of 81 percent.
DIN’s investment portfolio has also played a role in the company’s positive rating. The latter had a consistently strong return on equity (RoE) with a five-year average of 12.3 percent, especially with the current and foreseen success of the WPP and ILOE schemes.
M
oreover, Fitch reported that ‘DIN has a fairly large exposure to equity investments at 47 percent of its investment portfolio at end of 2022. Cash and bank deposits make up a further 41 percent of the investment portfolio, making the overall portfolio highly liquid, although DIN also has a 9 percent exposure to real estate investments.
Source: Emirates News Agency
