Riyadh-Amalak
Tawuniya Insurance Company was able to obtain the best global credit rating among Saudi and GCC insurance companies during 2013 after Standard & Poor's, the world's largest financial rating agency, gave it an outstanding (A) rating and a stable outlook.
Mr. Ali Abdulrahman Al-Subaiheen, CEO of Tawuniya, explained that Standard & Poor's has awarded this rating to Tawuniya for the eighth consecutive year, according to the modified rating mechanism, emphasizing that Tawuniya enjoys a strong insurance and financial risk portfolio supported by a strong competitive position in the Saudi insurance market. He added that S&P expects Tawuniya's future to remain stable based on its competitive position, which will remain a differentiating factor that contributes to attracting more revenues to support the capital adequacy ratio, pointing out that Tawuniya has benefited from the significant growth in the Saudi insurance market in recent years and its good reputation that distinguishes it from other competitors, in addition to its geographical spread by having the largest distribution network in the Saudi insurance market of more than 100 sales offices in addition to a large number of brokers and agents. S&P also expected Tawuniya to maintain its competitive position in the three business segments of medical, motor and property and casualty with a total market share of more than 27%, and expected Tawuniya to remain a distinguished and leading company for the Saudi insurance market, pointing out that there are other factors enjoyed by the company that had a positive impact on the rating process, including conscious management and governance, balanced risk management as well as the exceptional liquidity situation enjoyed by the company.
In its report, S&P reiterated its positive outlook on Cooperative's insurance portfolio, noting that the company's products are characterized by expected developments in claims management and reduced risk levels, especially catastrophe risks, in light of predictions of the possibility of floods and earthquakes in the western region of the Kingdom.
