Moody’s affirms Walaa’s A3 rating, changes outlook to negative

Moody’s Investors Service today affirmed the A3 insurance financial strength rating (IFSR) of Walaa Cooperative Insurance Company (Walaa) and changed the outlook to negative from stable.  

The rating action follows Walaa's announcement that it signed a non-binding memorandum of Understanding with Metlife AIG ANB Insurance Company (Metlife AIG ANB) to evaluate a potential merger between the two companies.  

The change in outlook to negative from stable reflects the short-term downside risks that the merger poses to Walaa’s underwriting profitability, given the loss-making history of Metlife AIG ANB, the ratings agency said.