A.M. Best Co. has placed the financial strength rating of “B+” (Very Good) and the issuer credit rating of “bbb-” of Lebanon’s Arab Reinsurance Company S.A.L. under review with negative implications.
“The under review status of Arab Re follows the potential negative impact on its investment portfolio deriving from the difficult political situation in Lebanon,” Best explained.
“Although the majority of Arab Re’s business portfolio originates from outside Lebanon (but within the Middle East region), the company is highly exposed to the domestic financial markets via fixed income securities, shares and bank deposits,” Best noted. As a result, Best indicated that in its “opinion, the current social and economic instability in Lebanon is likely to have a negative bearing on domestically held assets, and therefore may significantly impact Arab Re’s investment portfolio.”
Best said it woulkd “continue to monitor the situation in the region and aims to resolve the under review status as soon as possible.”
Was this article valuable?
Here are more articles you may enjoy.
UPS Ripped Off Seasonal Workers With Unfair Pay Practices, Lawsuit Alleges 
Aon Adds to List of Brokers Suing Howden US for Alleged Poaching, Theft 
WTW to Acquire Newfront in Deal Worth Up to $1.3B 
US House Bill Aims to End Private Flood Insurance Coverage Penalty 
