The improved profitability and underwriting performance of Jeddah headquartered Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) has led Moody's to affirm the company's insurance financial strength rating (IFSR) of Aa3 for the 12th consecutive year.
Moody's affirmed ICIEC’s IFSR with stable outlook on 1 October 2019 as the five-year combined ratio improved.
Moody’s observed the growth ICIEC has shown in 2018, with gross premiums increasing over 200% to ID51.7m. The combined ratio for 2018 was the lowest for ICIEC over the past five years. ICIEC has also been proactive in maintaining a good investment strategy, with a high-risk-asset ratio reduced to 12.9% in 2018 from 14.2% in 2017.
Moody’s noted that ICIEC is the only multilateral export credit and investment insurance corporation in the world that provides Shariah-compliant insurance and reinsurance products, and has enhanced knowledge from operating in OIC member countries. Moody's also noted that as a member of the Islamic Development Bank (IsDB) Group, ICIEC benefits from various managerial synergies and support.
ICIEC's rating also reflects both the strengthening stand-alone fundamentals of the corporation as well the strong ability and potentially high willingness of ICIEC's main ultimate shareholders, and in particular the IsDB, to support the corporation in times of financial distress.
ICIEC's mission is to facilitate trade and investment between member countries and the world through Shariah-compliant risk mitigation tools. Turkmenistan became the 47th member country of the ICIEC when it joined the corporation last month.