Al Fujairah National Insurance Company (AFNIC) improved its underwriting performance in 2025,following remedial actions, including premium rate increases, and the launch of a new medical product in the Northern Emirates, notes AM Best. The net-net combined ratio was 92% in 2025.
AFNIC’s track record of consistent technical profits was interrupted in 2021, with underwriting losses reported in each year until 2024. Under IFRS 17 results, the four-year (2022-2025) weighted average net-net combined ratio, as calculated by AM Best, is approximately 102%.
Although the motor segment underperformed in 2025, performance to date in 2026 has improved. Operating performance continues to be supported by positive, albeit volatile, investment returns.
Ratings affirmed
AM Best has affirmed AFNIC’s Financial Strength Rating of ‘B++' (Good) and Long-Term Issuer Credit Rating of ‘bbb’ (Good). The outlook of these credit ratings is stable.
The ratings reflect AFNIC’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM). The ratings also reflect enhancement from AFNIC’s majority shareholder, the Government of Fujairah – Department of Industry and Economy, which holds over 80% of AFNIC’s shareholdings.
AFNIC’s balance sheet strength is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), which was at the strongest level at year-end 2025. BCAR scores have shown improvement in comparison with the past year,
following actions taken to improve the resilience of the company’s balance sheet strength, primarily through the partial derisking of its investment portfolio. Despite these actions, AFNIC’s equity portfolio remains largely concentrated to a single strategic holding, which keeps investment risk elevated.
Business profile
The limited business profile assessment reflects AFNIC’s modest market position and significant geographic concentration. AFNIC’s operations are concentrated in the competitive and highly fragmented UAE non-life insurance market, where it writes a small share of total market premiums.
Nonetheless, the company maintains a unique position in the market, benefitting from preferential access to government-originated business in the Emirate of Fujairah and strong brand recognition in the Northern Emirates. AFNIC reported growth of 56% in insurance revenue to AED658m in 2025, driven primarily by growth in the motor and medical segments.