Moody's downgrades Al-Ittihad to Ba1
The Union Cooperative Insurance Company announced that Moody's has downgraded the company's financial strength rating from Baa2 to Ba1, with the rating now under review for a potential further downgrade. This stems from the financial challenges the company has faced, particularly losses incurred during 2025 and the first half of 2026, which led to a 20.5% decline in shareholders' equity—from 450 million riyals to 357 million riyals. The agency's review focuses on the effectiveness of management's efforts to improve underwriting performance and strengthen capital, while also warning of a decline in underwriting results and narrowing profit margins. Despite these challenges, the company maintains a strong market position and a well-established brand, along with a conservative investment strategy that minimizes risk, with high-risk assets accounting for 51.8% of shareholders' equity by the end of 2025.
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