Moody’s affirms Al-Etihad Insurance 'A3' rating, revises outlook to negative

Logo of Al-Etihad Cooperative Insurance Co.

Moody’s Investors Service affirmed Al-Etihad Cooperative Insurance Co.’s insurance financial strength rating at “A3” and revised the outlook to negative from stable, the insurer said in a statement to Tadawul.

The affirmation reflects the company’s strong market position, brand recognition, conservative investment strategy, solid capital adequacy, and sustained profitability through the cycle, it added.

Al-Etihad Insurance reported a five-year average return on capital of 7.7% in 2024, backed by a five-year average combined ratio of 95.2%.

Moody’s also cited management’s initiatives to address underperforming lines and implement corrective actions to strengthen capital adequacy.

However, the negative outlook reflects uncertainty over the effectiveness of these measures in restoring underwriting profitability and capital strength, as well as declining profitability and reduced capital adequacy due to weak underwriting performance in H1 2025.