At the same time, Standard & Poor's affirmed its 'BBB' long-term counterparty credit and insurer financial strength ratings on the company.
"The outlook revision reflects the expected benefits accruing to IGI from its enhanced business franchise following its restructuring and recapitalization in the fourth quarter of 2005," said Standard & Poor's credit analyst Kevin Willis.
The ratings reflect IGI's strong capitalization, marginally positive management, and good earnings. These strengths are partly offset by the company's marginal competitive position.
The positive outlook reflects the potential for IGI to substantially grow its competitive position in the Middle East and North Africa region and the Far East over the next two years following its restructuring, recapitalization, and expansion plan, aided by new regional offices. The ratings may be raised if this is accompanied by continued good earnings and a reduction in the exposure to Jordan-domiciled assets. Failure to substantially enhance competitive position or maintain good earnings could result in a revision of the outlook back to stable, however.
Standard & Poor's expects further reinforcement of risk management disciplines to aid delivery of good earnings and minimize the risk of capital erosion. Net combined ratios will be better than 90%, but in peak loss years combined ratios can be expected to substantially exceed 100%. Capital adequacy will be kept in the excellent range ('AAA') in the medium term.
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Jordan Insurer IGI outlook to positive on expected benefits of restructuring; ratings affirmed
- Jordan: Thursday, August 10 - 2006 at 14:06
- PRESS RELEASE
Standard & Poor's Ratings Services said today it revised its outlook on Jordan-domiciled International General Insurance Co. Ltd. Jordan (IGI) to positive from stable.
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Ratings information is available to subscribers of RatingsDirect, the real-time Web-based source for Standard & Poor's credit ratings, research, and risk analysis, at www.ratingsdirect.com. It can also be found on Standard & Poor's public Web site at www.standardandpoors.com; under Credit Ratings in the left navigation bar, select Find a Rating, then Credit Ratings Search. Alternatively, call one of the following Standard & Poor's numbers: Client Support Europe (44) 20-7176-7176; London Press Office Hotline (44) 20-7176-3605; Paris (33) 1-4420-6708; Frankfurt (49) 69-33-999-225; Stockholm (46) 8-440-5914; or Moscow (7) 495-783-4017.Analyst Contacts:
Kevin Willis, London (44) 20-7176-7085
Rob Jones, London (44) 20-7176-7041
Isobel McCalman, London (44) 20-7176-7233
Insurance Ratings Europe
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Standard & Poor's, a division of The McGraw-Hill Companies (NYSE:MHP), is the world's foremost provider of financial market intelligence, including independent credit ratings, indices, risk evaluation, investment research and data. With approximately 7,500 employees, including wholly owned affiliates, located in 21 countries. Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for more than 140 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions.
Posted by Anne-Birte Stensgaard, Senior News EditorThursday, August 10 - 2006 at 14:06 UAE local time (GMT+4)
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This article was updated on Sun Sep 10 2006.
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