(The following statement was released by the rating agency)
Sept 17 -
Summary analysis -- Oman United Insurance Co. S.A.O.G. ------------ 17-Sep-2012
CREDIT RATING: Country: Oman
Local currency BBB-/Positive/--
Primary SIC: Fire, marine, and
Credit Rating History:
Local currency Foreign currency
01-Jul-2009 BBB-/-- --/--
06-Apr-2006 BBB/-- --/--
The ratings on Oman-based insurer Oman United Insurance Co. S.A.O.G. (OUIC) reflect Standard & Poor's Ratings Services' view of the company's good operating performance and good capitalization. These strengths are partially offset by risks within its investment portfolio and the still-developing competitive position, which has been refocused in recent years.
We assess operating performance as good, despite the historical impact of exceptional natural catastrophes and investment market volatility. Our assumption is that the company will deliver greater stability in results, with a net combined ratio between 95%-100% and net investment yields between 2.5%-5.0%. OUIC's 2011 net combined ratio of 96% compares favorably to the overall market level of 104%. Revised underwriting appetite and current reinsurance arrangements are expected to significantly limit the net impact of future natural catastrophes.