Abu Dhabi National Insurance Co. P.S.C. 'A-' rating assigned; outlook stable

The outlook is stable.

"The ratings on ADNIC reflect very strong capitalization, strong earnings, and very strong liquidity," said Standard & Poor's credit analyst Kevin Willis. These strengths are in part offset by the very high dependence on reinsurance, both to protect the earnings and to promote the competitive position, and the relative narrowness of the competitive position derived largely within Abu Dhabi.

The outlook is stable.

"ADNIC will maintain very strong capitalization with strong operating results, delivering a combined ratio better than 75%," added Mr. Willis.

Enterprise risk management will take a more important profile and the company will move to more explicitly adopt risk tolerances and appetites, especially within the investment portfolio.

ADNIC will reduce its reinsurance dependence, aiming for net retention of 39% overall.

Liquidity will remain very strong.

Abu Dhabi will continue as the core operational base, but management will look for more regional opportunities, including acquisitions.

Positive rating action will be prompted by greater diversity in competitive position and enhanced implementation of enterprise risk management.

Negative rating action could be taken if the competitive position stagnates, or with a significant weakening of earnings and/or capitalization.