Abu Dhabi-Mubasher: A.M. Best maintained Union Insurance Company's financial strength rating (FSR) at B++ (Good) and the issuer credit rating (ICR) at “bbb”.

The rating agency’s outlook for the FSR remains stable, while the outlook for the ICR remains positive.

The ratings reflect the insurance firm’s strong risk-adjusted capitalisation, improving technical performance and good business profile.

Abu Dhabi-list firm’s risk-adjusted capitalisation remained at a strong level during 2014, despite substantial underwriting growth driving an increase in net required capital for the year.

A.M. Best projected the company’s prospective capital adequacy to remain commensurate with the current rating level, supported by strong internal capital generation.

Union’s technical performance improved during 2014, with a combined technical profit of AED 38.5 million, compared with AED 2.0 million in 2013.

Despite a strong technical profit of around AED 35.0 million, unrealised losses from the company’s investment portfolio resulted in a deteriorated operating result for the first nine months of 2015.