A.M. Best Revises Outlook to Positive for National General Insurance Company (P.S.C.)

  A.M. Best Revises Outlook to Positive for National General Insurance Company
  (P.S.C.)

Business Wire

LONDON -- May 2, 2014

A.M. Best has  revised the outlook to positive from stable and affirmed the
financial strength rating of B++ (Good) and issuer credit rating of “bbb+” of
National General Insurance Company (P.S.C.) (NGI) (UAE).

The revised outlook reflects NGI’s strengthening risk-adjusted capitalisation,
robust underwriting performance and notable improvements in the company’s
enterprise risk management.

NGI’s risk-adjusted capitalisation remains strong and is expected to
strengthen following the company’s decision to de-risk its investments,
reducing its exposure to property and equity holdings. In addition, the
company’s capital position will remain sufficiently strong to absorb projected
growth of up to 10% over the next two years.

NGI has exhibited a track record of generating robust underwriting income,
despite significant pressure on premium rates on the company’s main lines of
motor and medical business. The robust technical performance has been driven
by prudent underwriting and improved risk selection in medical business. The
company recorded a technical profit of AED 38.4 million (USD 10.5 million) in
2013, that translated into a loss ratio of approximately 75% compared with 80%
in the prior year.

NGI has made a concerted effort to improve its enterprise risk management.
Over the past year, the company implemented an internal capital model in
combination with a clear definition of its risk appetite in order to manage
its capital requirements. The company’s developing risk-based approach to
managing capital will support its strategic growth initiatives over the near
term.

Upward movements are likely to emanate from continuous improvements in the
company’s business profile and enterprise risk management.

Negative rating actions would arise from a significant deterioration in
risk-adjusted capitalisation or a prolonged weakening in the company’s
underwriting performance.

The methodology used in determining these ratings is Best’s Credit Rating
Methodology, which provides a comprehensive explanation of A.M. Best’s rating
process and contains the different rating criteria employed in the rating
process. Best’s Credit Rating Methodology can be found at
www.ambest.com/ratings/methodology.

In accordance with Regulation (EC) No. 1060/2009, the following is a link to
required disclosures: A.M. Best Europe - Rating Services Limited Supplementary
Disclosure.

This rating announcement has been issued by A.M. Best Europe – Rating Services
Limited, which is a subsidiary of A.M. Best Company. A.M. Best Company is the
world's oldest and most authoritative insurance rating and information source.
For more information, visit www.ambest.com.

       Copyright © 2014 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

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Contact:

A.M. Best
Konstantin Langowski, +(44) 20 7626 0318
Associate Financial Analyst
konstantin.langowski@ambest.com
or
Mahesh Mistry, +(44) 20 7397 0325
Director, Analytics
mahesh.mistry@ambest.com
or
Rachelle Morrow, +1-908-439-2200, ext. 5378
Senior Manager, Public Relations
rachelle.morrow@ambest.com
or
Jim Peavy, +1-908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com
 
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