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RIYADH: Saudi-based Al-Etihad Cooperative Insurance Co. has retained its A3 financial strength rating from Moody’s, reflecting the firm’s strong market position and disciplined underwriting. 

Moody’s cited several key strengths supporting the rating, including Al-Etihad’s solid market position as the Kingdom’s eighth-largest insurer, its conservative investment strategy — where high-risk assets represent just 28.2 percent of equity — and its strong capital adequacy.  

The agency also highlighted the company’s five-year average return on capital of 7.7 percent and a healthy combined ratio of 95.2 percent. 

“However, these strengths are partially offset by Al-Etihad’s concentration to the Saudi insurance market which has an elevated level of competition, as well as Al-Etihad’s concentration to motor and medical insurance, which are the Saudi insurance market’s most competitive lines of business,” Moody’s said. 

This marks the second consecutive A3 rating for Al-Etihad since August, when Moody’s initially assigned the grade, citing similar strengths such as asset quality and profitability. At the time, the agency emphasized the insurer’s ability to navigate competitive pressures while maintaining financial resilience. 

Al-Etihad, a mid-tier property and casualty insurer, offers a range of commercial and personal insurance products. The A3 rating places the company in the upper-medium grade category, indicating low credit risk and a strong capacity to meet its financial obligations. In its August update, Moody’s also affirmed Al-Etihad’s Governance Issuer Profile Score of G-2, reflecting its conservative risk management practices and experienced leadership.  

The insurer’s 2023 financial performance further strengthened its standing, with net profits surging 639 percent year-on-year to SR93.89 million ($25.02 million), driven by increased revenues in the motor insurance segment. 

Looking ahead, Al-Etihad’s ability to sustain profitability while effectively managing market risks will be critical to maintaining its current rating. 

Moody’s review did not incorporate explicit support from Al-Etihad’s largest shareholder, Kuwait’s Al Ahleia Insurance, but acknowledged governance benefits from the partnership. The agency’s following assessment will evaluate any material changes in the company’s credit profile. 

For now, the stable outlook signals confidence in Al-Etihad’s strategic direction, even as it faces sector-specific challenges in Saudi Arabia’s evolving insurance landscape. 

The Kingdom’s insurance sector has experienced robust growth, with revenues surging 16.9 percent year on year in the third quarter of 2024, driven by strong demand for motor, medical, and property insurance.  

According to a KPMG report, this expansion is fueled by Vision 2030-driven regulatory reforms, including mandatory health coverage and stricter auto insurance requirements.  

The sector’s net profit before zakat and tax jumped 25.9 percent to SR3.90 billion, while total assets grew 20 percent to SR84.91 billion, reflecting deepening market maturity.  

The Insurance Authority’s 2023 establishment and adoption of IFRS 17/9 standards have further strengthened governance and transparency. 

With S&P Global projecting 10-15 percent revenue growth in 2025, the sector remains a key pillar of Saudi Arabia’s economic diversification. 

RIYADH: Oman’s inflation rate inched up by 0.56 percent in March, reflecting overall price stability despite notable movements in select consumer categories, official data showed. 

According to data from the National Centre for Statistics and Information, the biggest year-on-year gain was recorded in the miscellaneous goods and services segment, which rose 6.11 percent, followed by health, up 3.22 percent, and transport, which advanced 1.74 percent.  

In contrast, prices for vegetables and fish and seafood fell sharply, declining 10.23 percent and 6.95 percent, respectively. 

Oman’s inflation remains one of the lowest in the region, thanks to government measures, prudent fiscal policies, high oil prices, and rising non-oil exports, with the rate easing in recent months. 

Across the region, Saudi Arabia recorded a 2.3 percent annual rise in consumer prices in March, with inflation largely driven by housing and utility costs, while Dubai’s rate moderated to 2.8 percent, down from 3.15 percent in February, supported by lower transport and food costs. 

On a monthly basis, Oman’s general index dropped by 0.36 percent in March compared to February.    

Despite the decline, the fruit category saw a 3.25 percent increase, followed by the miscellaneous goods and services group which saw a 0.72 percent increase.   

In contrast, transport prices fell 1.86 percent month on month, while the fish and seafood group dropped 3.53 percent.  

The food and beverages category, which holds the highest weighting in the consumer price index basket, fell 0.74 percent year on year and 0.58 percent month on month.   

Within this group, milk, cheese and eggs posted a 2.97 percent annual increase, while bread and cereals and meat fell by 0.55 percent and 0.44 percent, respectively.  

Oman has continued to consolidate its fiscal position, building on the momentum of recent surpluses. 

The Ministry of Finance recently reaffirmed its 2025 budget outlook, underpinned by sustained oil revenue and ongoing diversification initiatives. 

The sultanate recorded a real gross domestic growth of 1.3 percent in 2023, supported by a robust non-oil sector, and projects GDP to reach 44.1 billion Omani rial ($114.66 billion) in 2025.  

Non-hydrocarbon activities are expected to account for 70.5 percent of this total, reflecting progress in the country’s Vision 2040 goals. 

Additionally, public revenues are projected at 11.2 billion rial, with a continued focus on reducing public debt and boosting private sector participation.