Moody’s affirms Allianz Saudi Fransi A3 IFSR, ‘Stable’ outlook

Logo of Allianz Saudi Fransi Cooperative Insurance Co.

Moody’s Investors Service (Moody’s) affirmed A3 insurance financial strength rating (IFSR) of Allianz Saudi Fransi Cooperative Insurance Co., with a “Stable” outlook, according to a statement to Tadawul.

Moody’s stated that the rating affirmation reflected Allianz SF’s moderately good market and brand position as well as robust asset quality.

This was driven by a conservative invested asset strategy and strong reinsurance counterparties, besides firm capitalization, with a significant buffer above regulatory solvency capital requirements. This is besides good reserve adequacy with actuarial-led reserve setting and monitoring.

These strengths were partially offset by Allianz SF’s focus on highly competitive and commoditized motor and medical insurance in the fiercely-competitive Saudi market which has a high expense ratio that dampens underwriting profitability, albeit this has been improving.