Riyadh – Mubasher: Moody’s Investors Service has downgraded Al Etihad Cooperative Insurance Company’s Insurance Financial Strength Rating (IFSR) from ‘Baa2’ to ‘Ba1’.
The rating agency has also placed the company’s credit profile under review for further possible downgrades.
The rating action follows a material deterioration in the company’s financial position. Total shareholder equity fell by 20.50% during the first half (H1) of 2026, dropping to SAR 357 million from SAR 450 million at the end of 2025.
This decline was driven by losses sustained throughout 2025 and H1-26. Moody’s noted that the review period will focus on management’s ability to improve underwriting performance and rebuild capital reserves.
Despite the downgrade, the report highlighted the company’s established brand presence in the Saudi market and its conservative investment strategy.
Al Etihad Cooperative Insurance maintained a high-risk asset ratio of 51.80% relative to shareholder equity at the end of 2025, which provides some protection against financial market volatility.
The company’s board of directors is currently reviewing measures to enhance capital adequacy and stabilize operational results.
In H1-26, the insurance company reported net losses valued at SAR 92.19 million, higher by 21.93% year-on-year (YoY) than SAR 75.61 million.
