The insurance group Orient has a track record of very strong operating profitability and reported a return-on-equity ratio of 14.7%, and a net-net non-life combined ratio of 82.1% (both as calculated by AM Best) for 2025, says the global credit rating agency.
AM Best expects that Orient’s prudent approach to risk selection and focus on profitability over top-line growth will sustain its very strong technical performance over the medium term as the group navigates challenging market conditions, including high competition. The net impact of losses associated with the Iran conflict are expected to be minimal, with the group’s sizable gross exposures largely reinsured to counterparties of excellent credit quality.
Ratings affirmed
AM Best has affirmed the Financial Strength Rating of ‘A’ (Excellent) and the Long-Term Issuer Credit Ratings of “a+” (Excellent) of Orient Insurance and its subsidiaries, Orient Insurance Company-Egypt (Orient Egypt) and Orient Takaful. The outlook of these credit ratings is ‘Stable’. These companies collectively are referred to as Orient or the group.
The ratings reflect Orient’s balance sheet strength, which AM Best assesses as very strong, as well as its very strong operating performance, neutral business profile and appropriate enterprise risk management.
Orient Egypt and Orient Takaful are strategically important to Orient and benefit from the group’s strong explicit support.
Balance sheet strength
Orient’s balance sheet strength is underpinned by its consolidated risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). The group’s balance sheet strength is supported by prudent reserving practices and its strong liquidity position. Orient’s investment portfolio includes a strategic equity holding that accounted for approximately 20% of total invested assets at year-end 2025, and introduces potential volatility in Orient’s capital and surplus, owing to fair value movements. The group’s remaining invested asset portfolio is conservative, with a weighting toward cash and fixed-term bank deposits. The balance sheet strength assessment also factors in Orient’s high dependence on reinsurance. Counterparty credit risk is partially mitigated by the use of a panel of financially sound reinsurance partners.
Business profile
Orient’s business profile assessment reflects its leading market position in the UAE, where it ranks as the largest insurer by insurance services revenue (ISR), providing both conventional and takaful services. Domestically, the group benefits from a strong brand, a multichannel distribution network and its affiliation with its ultimate parent, Al Futtaim Holding. Whilst Orient continues to grow its overseas operations and expand its geographical reach, its premium is largely sourced from the UAE, where approximately 90% of its ISR was generated in 2025.