Riyadh – Mubasher: Moody’s Investors Service has placed Buruj Cooperative Insurance Company’s Baa2 insurance financial strength rating (IFSR) on review for downgrade.
The review for downgrade highlights governance risks and deterioration in the company’s business profile and profits, the insurer said in a bourse statement on Wednesday.
Despite the drop in gross written premiums (GWP), which led to a fall in Buruj’s previously strong profitability, Moody’s assured that Buruj’s capital, technical reserves, and liquidity buffers remain strong and are sufficient to absorb such declines in profitability for a few months.
The rating agency further noted that Buruj’s board has been active to ensure that the company continues to operate as normal in the fields of customer and claims servicing.
“Given the review for downgrade, there is limited upward pressure on the rating. Moody’s could confirm the rating at its current rating level if it concluded that the management actions were sufficient to reinstate Buruj’s business profile and profitability in the next six months,” the rating agency said.
