Etihad Credit Insurance (ECI) has shown steady portfolio growth, with gross exposure reaching AED10.9bn ($3bn) at end-2025 (end-2024: AED10.4b; end-2023: AED9.5bn), notes Fitch Ratings.
The company’s expansion prospects remain strong, with continued agreements and Memoranda of Understanding signed with various government organisations across multiple markets.
Fitch Ratings has affirmed ECI’s Insurer Financial Strength (IFS) Rating at 'AA-' (Very Strong) and its Long-Term Issuer Default Rating (IDR) at 'AA-' (Very Strong). The outlooks are ‘Stable’.
The ratings of ECI are aligned with the Long-Term IDR of the UAE ('AA-/Stable'), reflecting Fitch's view of an extremely high probability of support from the UAE authorities, given its systemic importance to the UAE and its specific government policy role in the diversification of the UAE's economy.
Aside from business growth, other drivers of EC’s ratings include:
Government Ownership: Fitch considers ECI's ownership by the UAE authorities, together with the extremely high likelihood of financial support, to be key drivers of its ratings. ECI is owned by the UAE federal government and the governments of five of the seven emirates, including Abu Dhabi and Dubai, each holding a 14.3% stake; in aggregate, these shareholders hold 50%.
Fitch regards ECI as systemically important to the UAE as the country's exclusive export credit company. The company was established to support the UAE economy by protecting UAE businesses and investments in foreign countries against commercial and political risks, reducing the cost of trade finance, facilitating project financing and easing access to trade-finance solutions and international markets.
Very Strong, but Weakening, Capitalisation: Fitch assesses ECI's capitalisation as 'Very Strong'. Net leverage was 0.4x at end-2024 (unchanged from end-2023), a very strong level, and Fitch expects the total net exposure-to-capital ratio will remain very strong in the short-to-medium term. However, capital has weakened over time due to accumulated retained losses, as the company has not yet generated overall profits since it was set up in 2018. An additional AED750m has been committed by the UAE Treasury at launch to support ECI's growth plans, although the capital has not yet been paid in. ECI does not have any financial debt in its capital structure.
Strong Reinsurance Programme: Fitch views ECI's reinsurance panel as strong and well-diversified, with companies rated 'A' or higher. The reinsurance arrangement, comprising highly rated reinsurers, has been renewed, enabling ECI to underwrite single risks of up to AED500m. ECI has a quota-share arrangement under which it cedes 60% of all risks to reinsurers.
Underwriting Loss; Expenses Remain High: ECI focuses on its strategic role of supporting UAE-based businesses to increase non-oil trade; maximising profitability is not the organisation's primary objective. Fitch views ECI's underwriting practices and risk-management standards as prudent and disciplined. Underwriting decisions are made on a commercial basis, and the company maintains conservative reserving estimates.
In 2024, ECI reported a net loss of AED23m (end-2023: AED28m). High expenses relative to the premium base were partly offset by higher investment income in 2024. Investments remain highly liquid and are entirely allocated to short-term deposits.
Fitch expects ECI to achieve profitability in the medium term, driven by revenue growth outpacing expenses as the insurer becomes more established.