Insurers heavily influenced by regional industry profile and operating environment
Source: Middle East Insurance Review | Dec 2023
Middle Eastern insurers’ company profiles are influenced heavily by the regional industry profile and operating environment (IPOE) ranges said Fitch Ratings.
In a commentary titled ‘Middle Eastern Insurers – Peer Review November 2023’, Fitch said that Middle Eastern countries tend to have low IPOE ranges due to limited technical sophistication and financial market development and local sovereign constraints.
However, Fitch-rated insurers in the region tend to have good company profiles due to strong business profiles and moderate/favourable corporate governance relative to peers.
Tawuniya has a ‘most favourable’ business profile relative to other Saudi Arabian companies due to its large operating scale, leading business franchise and strong competitive advantages.
Abu Dhabi National Takaful has a ‘moderate’ business profile due to its moderate competitive positioning, being one of the leading takaful insurers in the UAE.
Oman Re has a ‘least favourable’ business profile relative to that of global reinsurers. However, Oman Re is well diversified locally with a substantive business franchise in the Middle East.
Jordan French Insurance Co (JOFICO) has a ‘moderate’ business profile, due to its moderate competitive positioning, business risk profile and diversification in Jordan. M