09/02/2021 | Press release | Distributed by Public on 09/02/2021 07:53
SEPTEMBER 02, 2021 09:29 AM (EDT)
AM Best Places Credit Ratings of Union Insurance Company P.J.S.C. Under Review with Negative Implications
Romeo Berti, ACA, CMA
+44 20 7397 0267
Alex Rafferty, ACA
Manager, Public Relations
+1 908 439 2200, ext. 5159
FOR IMMEDIATE RELEASE
LONDON - SEPTEMBER 02, 2021 09:29 AM (EDT)
AM Best has placed under review with negative implications the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of 'bbb' (Good) of Union Insurance Company P.J.S.C. (Union) (United Arab Emirates).
The Credit Rating (rating) actions follow concerns over enterprise risk management and governance practices at Union and uncertainty surrounding the latest capital position of the company. Union has not yet filed its interim financial results for the first half of 2021, in line with the reporting requirements of the Abu Dhabi Securities Exchange. However, the company has indicated that it will report a loss of AED 48.5 million for the period, driven by a provision booked against property investments worth AED 72.3 million, for which Union's Board of Directors has concluded the company has neither the title deeds nor possession.
The ratings will remain under review while AM Best evaluates remedial actions taken by the company to address the recently observed governance deficiencies. In addition, AM Best needs to assess the implications of recent developments on Union's balance sheet strength assessment, notably on its risk-adjusted capitalisation and regulatory solvency position, and on its operating performance assessment.
This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.