Logo ofAl-Etihad Cooperative Insurance Co.
Moody’s downgraded the Insurance Financial Strength Rating (IFSR) of Al-Etihad Cooperative Insurance Co. to Ba1 from Baa2 and placed the rating under review for a possible further downgrade. 
The company said the downgrade reflects a significant deterioration in its financial position following losses incurred in H1 2026 and 2025.
Total shareholders’ equity fell 20.5% to SAR 357 million at the end of H1 2026, from SAR 450 million at the end of 2025.
Moody’s said the review for further downgrade reflects challenges in improving underwriting performance and rebuilding capital reserves, with the review focusing on the adequacy of management’s measures to improve underwriting results and the steps taken by management and the board to strengthen capital adequacy.
Positive aspects of the company’s assessment were also highlighted, as the company maintains its market position and brand in the Saudi insurance market, supported by good asset quality and a conservative investment strategy. This is reflected in its relatively low high-risk assets (HRA) ratio to shareholders’ equity, which stood at 51.8% at end-2025, limiting its exposure to financial market risks.
Logo ofAl-Etihad Cooperative Insurance Co.
Moody’s downgraded the Insurance Financial Strength Rating (IFSR) of Al-Etihad Cooperative Insurance Co. to Ba1 from Baa2 and placed the rating under review for a possible further downgrade.
The company said the downgrade reflects a significant deterioration in its financial position following losses incurred in H1 2026 and 2025.
Total shareholders’ equity fell 20.5% to SAR 357 million at the end of H1 2026, from SAR 450 million at the end of 2025.
Moody’s said the review for further downgrade reflects challenges in improving underwriting performance and rebuilding capital reserves, with the review focusing on the adequacy of management’s measures to improve underwriting results and the steps taken by management and the board to strengthen capital adequacy.
Positive aspects of the company’s assessment were also highlighted, as the company maintains its market position and brand in the Saudi insurance market, supported by good asset quality and a conservative investment strategy. This is reflected in its relatively low high-risk assets (HRA) ratio to shareholders’ equity, which stood at 51.8% at end-2025, limiting its exposure to financial market risks.
