AM Best Confirms National General Insurance Company (PJSC) Credit Ratings

AM Best Affirmed the financial strength rating of A- (Excellent) and the issuer’s long-term credit rating of “a-” (Excellent) from National General Insurance Company (PJSC) (NGI) (United Arab Emirates). The outlook for these Credit Ratings (ratings) is stable.

The ratings reflect the strength of NGI’s balance sheet, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate management of business risks.

NGI’s balance sheet strength is underpinned by its highest risk-adjusted capitalization as measured by Best’s Capital Adequacy Ratio (BCAR). AM Best expects risk-adjusted forward capitalization to remain at the highest level, supported by good earnings retention and contained growth. The valuation also takes into account the company’s good level of liquidity and its low underwriting leverage. Compensating rating factors include NGI’s heavy reliance on reinsurance and exposure to volatile equities and real estate assets. The assessment of balance sheet strength takes into account the low economic risk of the UAE and the moderate risk of the political and financial system.

The company achieved a five-year (2017-2021) weighted average return on equity ratio of 8.1%, which was supported by strong and stable underwriting results from its non-life portfolio. NGI demonstrated strong underwriting performance across key non-life business lines, with a five-year average combined ratio of 90.0%, as calculated by AM Best. After strong growth in life business in 2021, this line of business contributed AED 5.7 million to technical profit. NGI generated a net profit for 2021 of AED67.4 million (2020: AED44.4 million), driven by strong investment and underwriting income.

NGI has a well-established profile in the UAE insurance market as a mid-tier player with a ranking of 11and based on 2021 gross written premium. The company’s business profile is limited, in part due to its focus on the highly competitive UAE market. NGI has a strong presence in the local auto and medical lines of business and is one of 16 insurers authorized to participate in the Dubai Health Authority’s compulsory health insurance scheme. AM Best expects the company to experience modest growth in the short to medium term, with a continued focus on profitability and a balanced portfolio.

This press release relates to credit ratings that have been published on AM Best’s website. For all rating information relating to the release and relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For more information on the use and limitations of credit rating opinions, please see Best’s Guide to Credit Ratings. For more information on the proper use of Best’s Credit Scores, Best’s Performance Ratings, Best’s Preliminary Credit Ratings, and AM Best’s press releases, please see the Guide to Proper Use of Best’s Best ratings and reviews.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

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Justin D. O'Neill