Search form

Last updated: 2 min 30 sec ago

You are here

Corporate News

S&P affirms its outstanding rating for Tawuniya in 2017

Tawuniya CEO Abdul-Aziz Al-Boug
Standard & Poor’s (S&P), the world’s leading financial and credit rating agency, has affirmed its outstanding rating for the Company for Cooperative Insurance (Tawuniya) in 2017, granting it an “A-” rating with a “stable” outlook, the highest rating among insurance companies operating in Saudi Arabia.
In its report, S&P stated that Tawuniya’s strong performance, coupled with its earnings in 2016 and the first half of 2017 were key factors in the high rating. It said Tawuniya’s risk-based capital adequacy has further improved, reflecting strengthened capital position and competitive position as the leading insurance company in the Saudi market.
S&P further noted that Tawuniya’s high rating is aligned with the sovereign ratings on Saudi Arabia, given that Tawuniya operates only in Saudi Arabia.
Tawuniya CEO Abdul-Aziz Al-Boug said the rating affirms the great potential of Tawuniya in providing insurance protection to individuals and businesses that is on par with the highest international standards.
He added: “For 12 consecutive years, Tawuniya has maintained a distinguished global credit rating as a result of the company’s family and employees’ cumulative efforts, clear strategic vision, and the ability to innovate new programs and services. These are the key factors that have enabled the company to grow year after year.”
Al-Boug said the high credit rating “reflects strong confidence in a company’s financial capabilities, technical expertise and its ability to provide wide-ranges and sufficient insurance cover for large economic projects.” As a result, he noted, it gives clients full confidence in their dealings, reassures stockholders in their investment in the company and satisfies requirements to work with global re-insurance companies.
Tawuniya achieved a strong performance in 2016, as its gross premiums amounted to SR8.1 billion ($2.16 billion), achieving the highest market share of 22 percent. The net income increased to SR733, the shareholders’ equity amounted to SR2.9 billion and the total assets raised to SR13.5 billion. As a result of the profitable earnings, Tawuniya’s capital adequacy improved to the “AA” level in S&P model from “BBB” previously.

MORE FROM Corporate News