Al Sagr receives rating changes from Fitch

Al Sagr says the Fitch rating updates reflect its progress in adopting effective corporate governance practices

Al Sagr Cooperative Insurance Co. announced that its Insurer Financial Strength (IFS) rating was affirmed by Fitch Ratings at “BBB”, while its National Long-Term Rating was affirmed at “A+(sau)”.

Both ratings were removed from Rating Watch Negative (RWN), while the outlook on the two remains “Negative”, according to a statement to Tadawul today, Sept. 7.

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Al Sagr also said that this update followed Fitch’s review, underscoring the Saudi-listed insurer’s progress in implementing effective corporate governance practices and continued compliance with applicable regulations and supervisory requirements.

The rating affirmation reflected Al Sagr’s strong capitalization despite its relatively small market share in the Saudi insurance sector.

However, the persisting negative outlook is cemented on the recent financial performance and residual risks related to the full resolution of governance-related matters, according to the statement.

The company also reiterated its commitment to strengthening governance frameworks, enhancing financial performance, and addressing all outstanding regulatory and operational concerns that could impact its future credit profile.

According to data available with Argaam, Al Sagr had earlier received a notice from the the Insurance Authority (IA) on its suspension of the sale of compulsory vehicle insurance as of Feb. 19, 2025, due to supervisory violations and the board’s failure to implement effective governance practices.

In April, Fitch Ratings placed Al Sagr’s Insurer Financial Strength Rating of “BBB” and National Insurer Financial Strength Rating of “A+ (sau)” on “Negative” watch.