Muscat – National Life & General Insurance Co Group (NLGIC Group) – a leading insurer in the Middle East and the largest insurance group in Oman – on Monday announced that its financial strength rating has been upgraded from B++ (Good) to A- (Excellent) by the global credit rating agency AM Best.

The move also saw NLGIC Group’s long-term issuer credit rating revised upwards to A- (Excellent) from BBB+ and its outlook revised to stable, indicating superior financial health.

The key drivers for the revised outlook, according to the AM Best report, are NLGIC Group’s balance sheet strength, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

The AM Best report also confirmed that NLGIC’s recent purchase of RSA Middle East has been a central reason for the strengthening of NLGIC Group’s business profile, providing both product and geographical diversification and consolidating NLGIC Group’s position in its existing markets.

Notably, AM Best reported that the company has a track record of strong operating profitability, demonstrated by a five-year (2017-2021) weighted average return-on-equity ratio of 17.7 per cent. This historical operating profitability has been driven by strong underwriting results from the company’s non-life portfolio, evidenced by a five-year (2017-2021) weighted average combined ratio of 92.6 per cent.

In a press statement, Martin Rueegg, group CEO of NLGIC Group, said, “The revisions to NLGIC’s outlook reaffirms the success of the purchase of RSA Middle East, which resulted in the formation of NLGIC Group. This newly formed entity has created a leading multi-line insurer with a wide geographical footprint and strong in-country operations that leave the company exceptionally well-positioned for stability over economic cycles. The AM Best upgrade also confirms that the integration of RSA Middle East is fully aligned with our growth strategy, our plans to strengthen our market position in the GCC and our ability to widen our customer base.”

“As we gear up for next year, this credit rating sends strong signals on how we should proceed in the future as we expand our portfolio and position ourselves as a leading multi-line insurer in the region. With our solid financial footing, we are confident in our abilities to deliver strong results in the coming year.”

AM Best further stated that the purchase of RSA Middle East leads NLGIC Group towards a well-diversified profile by product and geography. The business profile assessment factored in the company’s leading market position in Oman, its firm presence in the UAE and Saudi Arabia, and its ongoing expansion into Kuwait and Qatar.