| Element List | Explanation |
|---|---|
| Announcement Detail | Al Etihad cooperative Insurance Company announces that Moody’s Ratings downgraded its Insurance Financial Strength Rating (IFSR) to Baa2 from A3 and placed the rating on review for further downgrade. The downgrade reflects a material decline in the company’s capital position following losses in YE 2025. Shareholders’ equity at YE 2025 declined by 36.8% to SAR449.6 million from SAR711.7 million at YE 2024, while Al-Etihad reported a combined ratio of 123% for 2025. Moody’s report indicated that the review for downgrade reflects the challenges Al-Etihad faces in improving underwriting performance and reinstating capital buffers. The review will focus on the extent to which management actions have been sufficient to improve underwriting performance and increase capital levels, the steps management and the Board are taking to strengthen capital adequacy and the time-period over which this might occur. Moody’s report indicated positive signs in company’s rating in maintaining its mid-market position and brand in Saudi Arabian insurance market, supported by good distribution capabilities, and good asset quality underpinned by a conservative investment strategy and evidenced by a relatively low level of high-risk assets (HRA) relative to shareholders’ equity of 51.8% at YE 2025, which reduces its exposure to financial markets risk. |
