Oman Qatar Insurance Company (OQIC) has announced that S&P Global Ratings (S&P) has assigned the company its first long-term Insurer Financial Strength (IFS) rating of 'A-' with a 'Stable' outlook.
Underscoring OQIC’s solid financial position and strategic market standing, the rating reflects S&P Global Ratings’ independent assessment of OQIC’s financial strength, operating performance, risk-adjusted capitalisation, and its strategic integration with its parent company, Qatar Insurance Co (QIC). The ‘Stable’ outlook further reflects S&P’s view that OQIC is well positioned to maintain a stable and resilient credit profile.
Strong support from parent company strengthens rating
S&P cited the unconditional guarantee provided by QIC to support OQIC’s obligations as an important factor in assigning this rating. This guarantee enhances OQIC’s financial resilience and capital strength, while reinforcing confidence in its ability to efficiently meet its obligations even under various economic challenges and conditions.
The rating commentary noted the strategic and operational integration between OQIC and QIC, highlighting that the parent company’s financial commitment and governance oversight underpin the Omani entity’s robust credit profile.
Capital adequacy and risk based capital metrics
In its analysis, S&P Global highlighted the strength of OQIC’s capital adequacy, underpinned by its integration within the QIC Group, whose capitalisation is assessed as remaining well above the 99.99% level under S&P’s risk-based capital model. This reflects a strong buffer against underwriting volatility, catastrophic losses, and market uncertainty, assuring investors and counterparties about the company’s financial stability.
Capital adequacy remains a core pillar in credit rating assessments, as it signals an insurer’s ability to absorb unexpected losses without external support. A solid risk-based capital position can help protect policyholders, maintain regulatory compliance, and support strategic growth initiatives.
Enhancing competitive position and market participation
OQIC’s newly assigned ‘A’ rating is expected to significantly strengthen its competitive positioning within the Sultanate of Oman’s insurance industry. This rating enhances the company’s ability to pursue large-scale insurance mandates, participate in complex underwriting opportunities, and compete more effectively with established regional insurers.
In this regard, Mr Hasan Yaseen Ali Al Lawati, OQIC CEO, stated that the assignment of an ‘A-’ rating by S&P represents a major milestone in the company’s corporate journey, reaffirming its financial discipline, operational strength, and commitment to sustainable value creation for clients and shareholders. He further noted that this achievement reinforces market confidence in OQIC’s ability to deliver strong long-term performance and maintain financial resilience.
Investor confidence and shareholder value
An ‘A-’ rating with a ‘Stable’ outlook not only reflects creditworthiness but also signals to investors, partners, and financial markets that the company maintains sound financial fundamentals supported by prudent risk management and effective capital governance. Such ratings are essential for building trust and attracting long-term investment, particularly in a sector where financial strength directly impacts policyholder protection.
Mr Al Lawati further emphasised that the rating will serve as a benchmark for future strategic planning and investor communications, aligning with its long-term objectives of transparency, governance excellence, and sustainable growth.