AM Best Affirms Credit Ratings for Suez Canal Insurance

AM Best has affirmed the Financial Strength Rating of B- (Fair), the Long-Term Issuer Credit Rating of "bb-" (Fair) and the Egypt National Scale Rating (NSR) of aa+.EG (Superior) of Suez Canal Insurance (SCI) (Egypt). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect SCI's balance sheet strength which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and marginal enterprise risk management (ERM).

SCI's balance sheet strength is underpinned by its risk-adjusted capitalisation at the very strong level, as measured by Best's Capital Adequacy Ratio (BCAR), for year-end 31 December 2025. The company's BCAR is expected to remain at least at the very strong level prospectively. Despite SCI's conservative investment allocation by asset class, AM Best considers the quality of its assets to be weak given the company's concentration in Egypt, which exposes SCI's balance sheet to potential volatility. The company has a relatively high reliance on reinsurance, evident by an insurance revenue retention ratio of 40.8% in 2025. However, the associated counterparty credit risk is mitigated partially by the use of a financially strong reinsurance panel.

SCI has a track record of adequate operating performance, generating a solid return-on-equity (ROE) of 11.7% in 2025. When adjusted for movements through other comprehensive income, the ROE stood at 22.4%, which is above the prevailing Egypt 10-year government bond yields. SCI's underwriting performance has been modest and subject to volatility, with non-life combined ratios typically trending close to break even, leaving the company reliant on investment income. While underwriting performance weakened in 2025, with a combined ratio of 115.4%, as calculated by AM Best, management is expected to take actions to address its very high expense ratio.

The business profile assessment reflects SCI's position as a mid-tier insurer in Egypt, with a non-life market share of approximately 4%. The company's profile is limited to operating solely within Egypt. In recent years, SCI has undertaken positive steps to formalise its ERM function and promote a risk-aware culture across the organisation. AM Best expects that further improvements in SCI's ERM framework and practices will support the company as it executes its strategic business plan.

This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings Assessments

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com

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