Union Insurance Reports a 60% Increase in Nine-Month Profit
Dubai, UAE- 28 October 2014 - A.M. Best Europe - Rating Services Limited has assigned a financial strength rating of B++ (Good) and issuer credit rating of 'bbb' to Union Insurance Company. The outlook assigned to both ratings is stable.
As per AM Best's press release, the ratings reflect Union Insurance's solid risk-adjusted capitalisation and incorporate the strength of its new senior management team, who joined the company in the third quarter of 2012. With a wealth of experience in the Middle East insurance markets and an impressive track-record spanning over 15 years with one of the leading domestic insurers, the management team has made considerable progress in restructuring Union Insurance's operations; establishing tighter controls, guidelines and reporting across business units, stricter underwriting to improve profitability, an overhaul of claims reserving and enhanced enterprise risk management.
Union's technical operations returned to profit during 2013 and maintained solid results for the first nine months of 2014, generating pre-tax operating profits of AED 66.7 million and AED 43.8 million respectively. The improvement in its technical performance reflects remedial actions taken by the company's new management. The company has tightened its underwriting controls and risk selection process, with a focus on profitability over non-performing business segments.
Although Union Insurance didn't have an impressive track-record prior to the change in leadership, the measures taken by the new management have resulted in significantly improved underwriting performance, a move towards a balanced business profile and reduced concentration in real estate assets during the first 9 months of 2013.
About Union Insurance Company
Established in 1998 and listed on the Abu Dhabi Securities Exchange, Union Insurance Company is regulated by the UAE Insurance Authority and has a paid up capital of over AED 330 million. The company provides a wide range of individual and commercial insurance products to clients in the UAE and Middle East region.