3rd September 2015
Tawuniya continues to reap the top rating in the Saudi insurance market for tenth consecutive year
The Company for Cooperative Insurance “Tawuniya” has been assigned an “A” rating and “Stable” outlook by Standard and Poor's (S&P), which is considered the best global credit rating among Saudi insurance companies in 2015.
S&P expects the stable outlook reflecting its view that Tawuniya's market position will remain strong and differentiating factor relative to local peers.
In its report recently issued upon the awarding of the outstanding rating for the tenth consecutive year, S&P indicated Tawuniya's competitive position as strong, because the company benefits from its nationwide coverage and reputation, which differentiates it from other competitors in the market.
S&P asserted the Tawuniya’s business risk profile to be strong as well as the positive view of product risk because the Company's focus on short-tail non-life business leads to relatively predictable claims developments as well as Tawuniya's overall catastrophe exposure is mitigated through reinsurance policies.
On his part, Chief Executive Officer of Tawuniya Mr. Raeed Abdullah Al-Tamimi is delighted with this rating assigned by the leading international financial rating agency, explaining that it reflects Tawuniya’s leading position in the market. It also sends a confidence message to our customers, shareholders and all stakeholders in the Company’s capabilities to fulfill its obligations in accordance with the highest level of technical and financial performance standards.
Mr. Al-Tamimi pointed out the S&P report confirmed that Tawuniya's financial flexibility is adequate and supported by debt-free balance sheet and a supportive shareholder base that is providing additional sources of funding.
S&P assess Tawuniya's liquidity position as exceptional relative to likely stressed demands and the company's investment portfolio remains to be highly liquid. S&P does not anticipate any material changes in its assessment over the next two years.
Furthermore, S&P report highlighted many other positive factors such as the company maintains a positive risk management culture and adequate underwriting risk controls.
In S&P view, Tawuniya's strategy of growth and profitability is reasonable, realistic, and consistent with its capabilities and the underwriting risk is low because Tawuniya generates all of its premium income from the local Saudi market. This means that the company is exposed to limited claims severity and therefore low claims volatility.