Lebanon: Investment income expected to remain strong contributor to Arab Re's earnings

Source: Middle East Insurance Review | Oct 2025

Arab Reinsurance Company recorded profitable operating results in all the past five years (2020-2024) and generated a robust return-on-equity ratio of 4.7% in 2024, noted AM Best.

The reinsurance company has reported positive annual underwriting results since 2021, which reflect portfolio remediation actions taken by Arab Re’s management, including exiting under-performing risks and revising underwriting guidelines.

Investment income is expected to remain a strong contributor toward overall earnings, resulting from the company’s relatively low underwriting leverage and the favourable global interest rate environment.

AM Best has affirmed Arab Re’s Financial Strength Rating of ‘B’ (Fair) and Long-Term Issuer Credit Rating of ‘bb’ (Fair). The outlook of these credit ratings is ‘Stable’.

The ratings reflect Arab Re’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and marginal enterprise risk management. M

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