Moody’s Assigns ‘Baa2’ Rating with Positive Outlook to Liva Insurance

Moody’s Investors Service has assigned a ‘Baa2’ insurance financial strength rating (IFSR) with a ‘Positive Outlook’ to Saudi Arabia’s Liva Insurance Company, the insurer announced on Tuesday.

The ‘Baa2’ rating reflects Liva Insurance’s robust operational fundamentals, including:

Strong capital adequacy: Highlighting its ability to meet financial obligations.

Conservative investment strategy: Supporting strong asset quality.

Good reserve adequacy: Combined with moderate reserve risk.

Improving profitability: A result of enhanced management practices implemented in the first quarter of 2023.

The Positive Outlook underscores Moody’s confidence in Liva Insurance’s underwriting sophistication and discipline, which are expected to sustain its profitability and support franchise growth in the Saudi market. The company’s strong financial position and backing from its largest shareholder, the Liva Group, further bolster its credit profile.

As part of the rating, Liva Insurance was assigned a Governance Issuer Profile Score (IPS) of G-2. Moody’s highlighted the company’s conservative financial strategy, robust risk management practices, experienced leadership, and the involvement of anchor shareholders, including Liva Group and Riyad Bank.

Liva Insurance said the rating reflects its commitment to operational excellence and long-term growth.