In a recent assessment, AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of 'a-' (Excellent) for Dubai National Insurance & Reinsurance P.S.C. (DNI), with a stable outlook. This affirmation underscores the company's robust financial position and operational efficiency.

DNI's balance sheet strength is rated as very strong, supported by risk-adjusted capitalization at the highest level according to Best's Capital Adequacy Ratio (BCAR). The company's financial resilience is further bolstered by solid earnings retention, primarily driven by consistent investment returns, low underwriting leverage, and prudent reserving practices. However, a notable challenge remains its high dependence on reinsurance, with a three-year average retention ratio of approximately 49.9%. This risk is mitigated by partnering with a panel of international reinsurers of excellent financial strength.

Despite a track record of strong operating performance, evidenced by a five-year weighted average combined ratio of 85.3%, DNI has faced recent pressures. The net combined ratios for 2024 and the third quarter of 2025 rose to 104.2% and 99.8%, respectively, indicating challenges in technical profitability. Nevertheless, the company's strategic measures in risk management and investment performance provide a cushion against these pressures.

In light of these factors, investors should consider a 'hold' position on DNI. The company's solid foundation and strategic risk management efforts suggest potential for recovery in underwriting performance, despite short-term challenges. This stable outlook, coupled with a strong balance sheet, positions DNI as a resilient player in the insurance and reinsurance market.