Dubai National Insurance & Reinsurance

AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of "a-" (Excellent) for Dubai National Insurance & Reinsurance P.S.C. (DNI) in the UAE, with a stable outlook. These ratings reflect DNI's very strong balance sheet, strong operating performance, limited business profile, and appropriate enterprise risk management. The company's balance sheet strength is supported by strong risk-adjusted capitalization, good earnings retention, low underwriting leverage, good liquidity levels, and prudent reserving practices. However, DNI's high dependence on reinsurance, with a retention ratio averaging 35% over the last five years, is noted as a rating offset. This risk is partly mitigated by using a panel of financially strong international reinsurers. In 2023, DNI achieved a return on equity of 6.7% and a net combined ratio of 94.1%, with investment income contributing significantly to net profit. Recent technical profitability has faced challenges due to difficult underwriting conditions.