On April 16, 2026, Al Etihad Cooperative Insurance Company announced that Moody's Ratings downgraded its Insurance Financial Strength Rating (IFSR) to Baa2 from A3 and placed the rating on review for further downgrade. The downgrade reflects a material decline in the company's capital position following losses, with shareholders' equity declining by 36.8% to SAR 449.6 million from SAR 711.7 million at year-end 2025, while reporting a combined ratio of 123% for 2025. Moody's review will focus on management's actions to improve underwriting performance, strengthen capital adequacy, and the timeline for capital restoration. Despite the downgrade, Moody's noted positive factors including the company's mid-market position in Saudi Arabia's insurance market and conservative investment strategy with high-risk assets representing 51.8% of shareholders' equity.

Original announcement:

Important Notice: The announcement information and market data in this report are sourced directly from the Saudi Exchange (Tadawul). This summary is generated by Sahm’s proprietary AI model for informational purposes only. While we strive for accuracy, it should not be construed as financial advice or an investment recommendation.