A.M. Best on May 6 lowered to B++ (Good) from A- (Excellent)the financial strength rating of Abu Dhabi National Insurance Co. PSC.
The rating agency also lowered the company's issuer creditrating to "bbb+" from "a-". Both ratings were removed fromunder review with negative implications and assigned a stable outlook.
The agency attributed the downgrades to the company's weakearnings performance in 2014 and 2015 and its deteriorated risk-adjustedcapitalization in 2015, together with the company's inability to restore itscapital position in a timely manner.
However, the outlook reflects the steps the company took toimprove its governance structure and underwriting discipline, includingreshuffling the senior management team and revamping its claims and reservingprocesses.