Egypt’s Misr Insurance Company says targets an A rating from BBB in the coming few years and will start next October negotiations with A.M. Best to receive a new rating.
The talks will start after Misr Insurance endorsed its budget for the previous financial year, the insurer’s board member Mohamed Khalifa told Amwal Al Ghad on Monday.
The targeted credit rating A will be backed by Misr Insurance’s substantial financial position, Khalifa said.
Earlier, A.M. Best assigned in December a financial strength rating of B++ (Good) and an issuer credit rating of “bbb” to Misr Insurance, with stable outlook.
A.M. Best said the ratings reflected Misr Insurance’s excellent business profile in Egypt, strong risk-adjusted capitalisation and track record of good operating performance. An offsetting rating factor is the company’s exposure to the very high level of political risk and high levels of economic and financial system risks associated with operating in Egypt. The ratings also factor in the financial strength and flexibility of the parent company, as well as Misr Insurance’s strategic importance as the non-life and reinsurance operations of the group.
A.M. Best Company – the leading information provider for the global insurance industry – is the world’s oldest and most authoritative insurance rating and information source.