Moody’s has affirmed ICIEC’s Insurer Financial Strength Rating (IFSR) rating of Aa3 with stable outlook for the 11th consecutive year on July 2nd 2018. The rating reflects ICIEC’s improved profitability and underwriting performance, as the combined ratio improved to 108% from 200% in 2016. Moody’s notes that the combined ratio for 2017 was the lowest ICIEC has achieved over the past 5 years. Foreign investment insurance increased by 28% to USD 1.6 billion in comparison to USD 1.2 billion in 2016. Whereas a large portion of the premiums written in 2017 were in markets including Saudi Arabia and other GCC countries, ICIEC also won new clients in Kuwait, South Africa, France, and Egypt. ICIEC was also proactive in strengthening its reserves and maintaining a good investment strategy. Majority of investments assets were rated in investment grade category, with a high-risk-asset ratio improving to 14.2% from 16.8% in 2016.
Moody’s noted that ICIEC is the only multilateral export credit and investment insurance corporation in the world that provides Shariah-compatible insurance and reinsurance products, and has enhanced regional knowledge. Moody’s also noted that as a member of the IsDB Group, ICIEC benefits from various managerial synergies and support.
ICIEC’s rating also reflected both the stand-alone fundamentals of the Corporation as well the strong ability and potentially high willingness of ICIEC’s main ultimate shareholders, and in particular the Islamic Development Bank (Aaa stable), Saudi Arabia, (Aa3 Stable) and other GCC countries, to support the company in times of financial distress.