A.M. Best places Credit Ratings of Saudi Arabian Insurance Company B.S.C (C) under review with negat
A.M. Best has placed under review with negative implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Saudi Arabian Insurance Company B.S.C. (C) (Damana) (Bahrain).
The Credit Rating (rating) actions follow the discontinuation of Damana’s strategic business relationship with Cigna Corporation (Cigna), announced on 13 March 2017. The under review with negative implications status reflects the disruption to Damana’s business model and uncertainty regarding the outcome of the company’s commercial strategy as a result of losing this partnership which accounted for the majority of Damana’s premium revenue. The ratings will remain under review pending additional clarity on outcome of the company’s business strategy.
Damana has a strong regional presence in the Middle East, with established operations in Bahrain, the United Arab Emirates, Oman and Kuwait. The company also has a broader profile in Saudi Arabia, Yemen and Lebanon via its affiliates and sister companies. Damana’s regional network provides the company with a strong base to expand its own commercial footprint in Middle East region whilst making it attractive to international insurers looking for a regional partnership. A.M. Best expects the company’s business strategy to appropriately leverage the breadth of its operations in the region. A.M. Best also notes the strength of Damana’s management team, which has developed a comprehensive business origination network whilst displaying a high level of underwriting discipline, evidenced by solid technical earnings on Damana’s insurance operations outside of its Cigna relationship.