The ratings reflect the company’s improving technical profitability, adequate level of risk-adjusted capitalisation and developing profile within its domestic insurance market. An offsetting rating factor is the volatility in the company’s technical performance in recent years.
The company’s risk-adjusted capitalisation has strengthened over the past two years and remains supportive of the current ratings. Whilst a successful rights issue boosted paid-up capital by
The company’s underwriting earnings have declined over the past three years contributing to a five-year average combined ratio of 100%. However, strategic decisions taken by management to improve results in its key motor line of business, such as enforcement of actuarial based pricing and a more focused sales approach, have seen underwriting profits improve in 2016, leading to a total comprehensive profit for the year-to-
Wala’a has a developing profile in the Saudi Arabian insurance market. Gross written premiums have grown rapidly to
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