[ad_1]
Best morning The B++ (Good) financial strength rating of Misr Insurance Company (MIC) (Egypt) and the long-term issuer credit rating (Long-Term ICR) of “bbb” (Good) have been confirmed. The outlook for these credit ratings (ratings) is stable. MIC is a non-life insurance subsidiary of Misr Insurance Holding Company (MIHC) (Egypt).
These ratings reflect the strength of MIC’s balance sheet, which AM Best considers to be very strong, as well as its adequate operating performance, neutral business profile and proper enterprise risk management (ERM). Due to the strategic importance of MIC to the group, the rating has also benefited from MIHC’s financial strength in the form of an upgrade.
MIC’s balance sheet strength benefits from its highest level of risk-adjusted capital, as measured by Best’s capital adequacy ratio (BCAR). AM Best predicts that with the support of good internal capital generation and low underwriting leverage, the score will easily be higher than the minimum level required for the strongest BCAR assessment. Although the company has carried out relatively conservative investment allocation by asset class, AM Best believes that asset quality is weak because it is concentrated in Egypt, which exposes MIC’s balance sheet to potential volatility. The balance sheet strength assessment also considers the company’s high dependence on reinsurance and Egypt’s high economic and political risks, as well as…
The full story can be found on Benzinga.com
[ad_2]
Source link
