A.M. Best Affirms Ratings of Union Insurance Company P.S.C.

A.M. Best has affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb” of Union Insurance Company P.S.C. The outlook on the FSR remains stable, whilst the outlook on the Long-Term ICR remains positive.

According to AM Best release, the Credit Ratings reflect Union’s strong technical profitability, robust risk-adjusted capitalisation and solid business profile. The positive outlook on the Long-Term ICR reflects A.M. Best’s expectation that management action, aimed at de-risking Union’s balance sheet, will lead to improved risk-adjusted capitalisation and more stability in earnings, which may drive a positive rating action.

The release highlighted that Union has demonstrated a track record of reporting strong technical results since a change of management during late 2012. The new management team has been successful in executing its ambitious plans for achieving profitable underwriting growth, despite the prevailing competitive market conditions in the United Arab Emirates.

Union’s domestic market share has strengthened notably over the past three years, with the company achieving a top five position amongst UAE-listed insurers. Union’s life segment, in particular, has experienced rapid growth since the company obtained a license to commence underwriting life business in 2013.