In a recent report, of which KUNA obtained a copy, Moodyâs revealed a number of factors that supported NBKâs strong standing, including its locally-influential trade mark; cautious regional expansion that offered opportunities for greater expansion in the future, as well as opportunities for improving its trade mark and diversification; good strategic planning; and a stable executive team supported by a well-experienced board of directors and a strong financial basis. Moodyâs noted that what set NBK apart was that it was not disclosed to any faltering local investment companies â” with very limited exposure to Saad and Qusaibi groups â” and that despite being one of the biggest local banks with one of the largest network of branches abroad, its conservative credit management and its knowledgeable risk management helped the bank avoid such problems. Although this line of work was dealt a strong blow by the global economic crisis in late 2008, and the fact that positive performance in this area was not expected this year, Moodyâs said this activity was not a major one for NBK and thus would not affect its performance this year, nor would it have a noticeable long-term impact, unlike the case for many Kuwaiti investment companies. Al-Ain Ahlia offers a wide range of non-life insurance lines to companies and individuals in Abu Dhabi, with a particular focus on providing property, engineering, oil & gas and motor insurance to the major state-sponsored and private commercial enterprises. Moodyâs says that upward rating pressure for Al-Ain Ahlia may evolve over time from (1) a significant reduction in investment risk, either through a wider spread of asset classes and/or geographic exposure; and (2) through sustained profitable growth and international expansion reducing concentration risks. Conversely, Moodyâs says that the rating may experience downward pressure from (1) a significant deterioration in Abu Dhabiâs economic environment; (2) reduced underwriting profitability with combined ratios of above 100% for several years; and (3) a reduced capital position with gross underwriting leverage rising above 2. read more

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