Partly offsetting the possible strain on liquidity of these potential short-term liabilities, ABNIC
holds cash and marketable shares of AED 237.
In addition to that, ABNIC
is improving its core competencies and enhancing its risk management controls in order to protect the rights of its shareholders and policyholders, Nader T Qaddumi, General Manager of the company, said.
The agency said, "In our view, ABNIC maintains a high-risk investment strategy and exhibits a lack of clear risk tolerances.
The ratings agency expects ABNIC Group's net combined ratio to remain very strong at better than 80 per cent in 2011 and 2012, that its investment portfolio will remain heavily exposed to property, the investment leverage ratio will remain at around 160 per cent-170 per cent, and that its capital adequacy will remain at least adequate.
Group has a consistently high-risk investment strategy, concentrated primarily on property (70% of total investments on March 31, 2010), and secondarily on equities, including investment in affiliates (13%).