Standard and Poor's has upgraded the rating of Oman United Insurance Co  (OUIC) to BBB from BBB-.
According to S&P , its rating reflects the company's fair business risk profile and upper adequate financial risk profile, demonstrated by its adequate and strengthened competitive position and moderately strong capital and earnings.
"Oman United Insurance Co has an adequate competitive position, which is illustrated by its high level of control over its distribution channels, its operating performance in line with peers, and exclusive exposure to the small, highly competitive, and catastrophe-exposed Omani market," S&P said.
The ratings agency pointed out that OUIC's competitive position has strengthened the implementation of new business strategies, which have supported high premium growth, averaging 30 per cent per year over the past two years.
"The company has a clear and consistent strategy, which it has effectively implemented over the past three years."
According to S&P, OUIC's capital, as per the current assessment, is extremely strong and sufficient to support business growth expectations and will be at least commensurate with an AA assessment by 2015.
In S&P's opinion, the company will maintain moderately strong capital and earnings, which represent its comparatively modest capital base. The stable outlook reflects S&P's view that OUIC's competitive position in the Omani market will enable it to achieve the ratings agency's base-case earnings assumptions.
"Sustainable growth in premiums will support OUIC's at least very strong capital adequacy and retained net profits," the ratings agency added.