RIYADH: Financial and credit rating is one of the most important ways to identify an insurance company’s financial strength and its capacity to provide compensation to customers and fulfill its obligations to stakeholders. Customers and service providers will have difficulty determining the financial stability of an insurance company without financial ratings.
The insurance company is subjected to an assessment to achieve a financial rate. If the insurance company runs into financial difficulties, its financial rating will be downgraded. If, on the other hand, the company’s financial performance improves, its rating will be upgraded, and current and potential clients are assured that it will be able to meet its obligations.
Tawuniya Insurance Company is one of the highest-rated Saudi companies in the insurance market. It has received an “A-” rating with a stable outlook from Standard & Poor’s, confirming its financial performance and stability and enabling it to meet its obligations to clients and stakeholders.
This rating reflects Tawuniya improving financial performance for the last three consecutive years from 2019 to 2021, as shown in the S&P report. In 2021, Tawuniya achieved positive results, including a 13 percent growth compared to last year in GWP reaching SR10.2 billion ($2.72 billion), and increasing the company’s market share to 25 percent accordingly. Total assets were SR14.6 billion, total equity SR2.1 billion, and the net profit before zakat was SR350 million. The net investment income was SR302.8 million.
As stated in its report which was issued on April 19, Standard & Poor’s assigned Tawuniya an (A-) rating based on the strengths that the company has, most notably the strong competitive position, the capital adequacy ratio, and the strong financial performance supported by the profitable underwriting and investment income.
Standard & Poor’s affirmed that the stable outlook reflects its view that Tawuniya will maintain its strong operating performance and competitive position, while gradually improving its capital adequacy over the next two years.
Abdulaziz H. Al-Boug, Tawuniya’s CEO, expressed his happiness over the global rating, which he said confirms the company’s financial strength and capabilities to provide high standard insurance protection to all individuals and corporates, as well as its ability to fulfill its obligations toward all customers and stakeholders.
“The rating assigned by S&P also reflects Tawuniya’s position as the leading company in the Saudi insurance market, the company’s strategic vision, its ability to develop programs and services, and its possession of a diversified insurance portfolio, in addition to its possession of a strong IT infrastructure that helps Tawuniya succeed and grow year after year,” Al-Boug added.
