Al Etihad Cooperative Insurance Company announced that Moody’s Ratings affirmed its ISFR Rating at A3, changing the outlook to negative

The affirmation of company’s A3 IFSR reflects its good market position and brand, good asset quality driven by a conservative investment strategy, strong capital adequacy, and good through-the-cycle profitability, with a five-year average return on capital (ROC 5yr) of 7.7% in 2024, supported by a good five-year average combined ratio (COR 5yr) of 95.2%.

The affirmation of Al-Etihad’s A3 IFSR further reflects Moody’s baseline assessment of the steps that management has taken to remediate loss making business and improve capital adequacy. However, Moody’s notes that uncertainty remains as to whether these steps taken to remediate underwriting performance will be sufficient to restore profitability and capital adequacy – this is reflected in the negative outlook.

The change in outlook to negative reflects deterioration in company’s profitability and diminished capital adequacy that has resulted from weakened underwriting performance in the first half of 2025.