AM Best has reaffirmed the financial strength ratings of SNIC Insurance, a subsidiary of EA Juffali & Brothers, the family-owned Saudi conglomerate and an associate of Munich Re Group, the world’s largest reinsurer.
The international credit rating agency affirmed SNIC’s financial strength rating (FSR) of B+ (Good) and long-term issuer credit rating (Long-Term ICR) of ‘bbb-’ (Good) with a negative outlook.
The affirmation reflects AM Best’s assessment of SNIC’s robust balance sheet strength, supported by a very strong level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR).
In addition, the company continues to demonstrate a solid liquidity position, with liquid assets representing 436.5 per cent of net technical reserves at year-end 2024 (2023: 440.2pc), providing a strong buffer to meet policyholder and operational obligations.
According to AM Best, SNIC recorded a net-gross combined ratio of 109.7pc in 2024 under IFRS 17, representing a notable improvement compared to 113.1pc in 2023. While technical results have remained marginally loss-making since 2023, AM Best noted that this is largely attributable to the company’s elevated expense base relative to its scale, reflecting ongoing strategic investments in digital customer solutions and operational capabilities.
AM Best also acknowledged SNIC’s continued focus on digital enablement, particularly in sales and claims management, which has contributed positively to insurance revenues and underpins the company’s longer-term operational efficiency and customer experience strategy.
Commenting on the rating affirmation, Khalid Al Shaikh, general manager of SNIC Insurance, said: “We welcome AM Best’s reaffirmation of SNIC’s ratings, which reflects the strength of our capital position, our disciplined risk management framework, and our commitment to meeting obligations to policyholders, partners, and other stakeholders.”
He added: “Over the past period, the company has continued to invest in areas critical to long-term sustainability, including digital enablement, cyber security, and talent development. These investments, alongside disciplined underwriting initiatives, have begun to translate into measurable improvements in our insurance results.”
Mr Al Shaikh concluded: “SNIC remains focused on executing its strategic priorities, including automation, portfolio diversification, segmentation, and partnerships. We are confident that these initiatives will support further performance improvements and position the company to restore a stable outlook next year, while continuing to deliver innovative insurance solutions and an enhanced customer experience.”
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