AM Best affirms rating of Egypt’s Al-Mohandes Insurance Company
The AM Best insurance rating agency has affirmed the financial strength rating of B++ of Egypt’s Al-Mohandes Insurance Company (Mohandes). The outlook remains stable, according to a press release.
The rating is based on the company's excellent risk-based capitalization and robust underwriting performance, although Mohandes' business position continues to be challenged by the increasingly competitive operating environment in Egypt.
AM Best regards Mohandes' prospective capitalization as excellent based on a continuation of its record of high retained earnings. Shareholders' funds are expected to grow 10 percent by year-end June 2004, which compares with modest projected growth in gross written premiums in the region of two to three percent.
In AM Best's opinion, Mohandes' underwriting and bottom line performance will continue to be positive, partly as a result of the company's technical approach to pricing, which has resulted in a 40.9 percent five-year average loss ratio to year-end June 2003. AM Best also believes that the company will benefit from good returns from its investment portfolio.
The rating agency anticipates that the company's life portfolio will grow by approximately 10 percent at year-end June 2004, as the demand for life products continues to grow in Egypt. However, its non-life premium volume is expected to fall by approximately six percent, as the company tries to resist price competition at a time when its market share is under pressure from new entrants to the Egyptian market. — (menareport.com)
© 2004 Mena Report (www.menareport.com)