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.
