He said that ABNIC provides full level of services throughout the branches available across the UAE.
Commenting on ABNIC's relationship with FMC Network UAE, Nabil Shanawani said that his company enjoys harmonious understanding with FMC Network UAE for the last 15 years, and has closely worked with it in different emirates.
Meanwhile, our assessment of ABNIC's satisfactory business risk position and upper adequate financial risk profile leads to an indicative anchor of 'bbb+'.
Although ABNIC has made considerable use of debt funding over recent years, we have noted a gradual reducing trend in borrowings, and the current level of indebtedness is not in itself a particular concern to us.
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.
We have, however, kept ABNIC 's ratings at 'BB+' due to what is, in our view, a still less than adequate liquidity position.
Although the debt and liquidity positions continue to improve gradually as indebtedness reduces, we note that as of the end of March 2016, ABNIC still reported UAE dirham (AED) 415.2 million of total debt, of which AED52.6 million was in the form of overdraft funding, with a further AED52.4 million of scheduled principal repayments on the term debt during 2016.
ABNIC 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%).
Although we regard ABNIC Group's liquidity as good, it has nevertheless weakened,said Standard & Poor's credit analyst Nigel Bond.
"ABNIC is one of the top seven leading insurers in the UAE out of 62 companies, and it reported gross premiums of UAE dirham (AED) 563.6 million (US$153.6 million) in 2014.
"In the absence of significant asset sales, we assume that high levels of debt will remain on ABNIC's books for some years to come.
The ratings on ABNIC
reflect the company's marginal investment profile and marginal liquidity; marginal financial flexibility and weakened capitalisation; and a lack of clear risk tolerances, particularly in its investment risk management.