AM Best Affirms Credit Ratings of Al Fujairah National Insurance Company PJSC

AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of "bbb" (Good) of Al Fujairah National Insurance Company PJSC (AFNIC) (United Arab Emirates) [UAE]. The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect AFNIC's balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM). The ratings also reflect enhancement from AFNIC's majority shareholder, the Government of Fujairah Department of Industry and Economy, which holds in excess of 80% of AFNIC's shareholdings.

AFNIC's balance sheet strength is underpinned by its risk-adjusted capitalisation, as measured by Best's Capital Adequacy Ratio (BCAR), which was at the strongest level at year-end 2025. BCAR scores have shown improvement in comparison with the past year, following actions taken to improve the resilience of the company's balance sheet strength, primarily through the partial derisking of its investment portfolio. Despite these actions, AFNIC's equity portfolio remains largely concentrated to a single strategic holding, which keeps investment risk elevated.

AFNIC's track record of consistent technical profits was interrupted in 2021, with underwriting losses reported in each year until 2024. Under IFRS 17 results, the four-year (2022-2025) weighted average net-net combined ratio, as calculated by AM Best, is approximately 102%. Following remedial actions, including premium rate increases, and the launch of a new medical product in the Northern Emirates, AFNIC's underwriting performance improved in 2025, as evidenced by a net-net combined ratio of 92%. Although the motor segment underperformed in 2025, performance to date in 2026 has shown an improvement. Operating performance continues to be supported by positive albeit volatile investment returns.

The limited business profile assessment reflects AFNIC's modest market position and significant geographic concentration. AFNIC's operations are concentrated in the competitive and highly fragmented UAE non-life insurance market, where it writes a small share of total market premiums. Nonetheless, the company maintains a unique position in the market, benefitting from preferential access to government-originated business in the Emirate of Fujairah and strong brand recognition in the Northern Emirates. AFNIC reported growth of 56% in insurance revenue to AED 658 million in 2025, driven primarily by growth in the motor and medical segments.

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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Jessica Botelho-Young, CA
Director, Analytics
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