Moody's assigns A3 rating to Walaa Insurance

Moody's Investors Service has assigned an A3 insurance financial strength rating (IFSR) and a stable outlook to Walaa Cooperative Insurance Co., it said in a statement on Tuesday.

The A3 IFSR of Walaa Insurance reflects its strong market position, asset quality, capital and reserve adequacy, and the good recent profitability, the ratings agency said.

“However these strengths are partially constrained by the increasingly competitive Saudi Arabian property and casualty insurance market,” it said.

The stable rating outlook reflects a forecast that Walaa will maintain its improved profitability by profitably growing the business and thereby further aid its capital adequacy.

Walaa reported an 8.4 percent growth in premiums to SAR 1.1 billion for 2017 from SAR 1 billion in 2016 and thereby reported a 20.3 percent growth in net income to SAR 145.2 million in 2017 from SAR 120.7 million in the previous year.

As a result Walaa's consolidated equity increased by 33.4 percent to SAR 600.2 million last year from SAR 450 million in 2016.