S&P confirms Wataniya’s BBB rating

Standard & Poor’s has confirmed BBB rating for Wataniya’s credit and financial soundness raising its outlook from negative to stable. This adjustment has been accounted for by the doubling of the company’s capital following issuance of shares. Shareholders’ equity now amounts to 43 million USD, which is judged to be moderately sound by the rating agency.

S&P has also referred to Wataniya’s absence of the health insurance market which accounts for 50% of the sector’s premiums. This shortcoming stands as a serious impediment to development by restricting the possibilities of any expansion of its turnover and its profits.

Read also:

• The insurance industry in Saudi Arabia: 2015 results
• Disappointing results despite price increase
• Health insurers generated profits in 2015