A.M. Best Upgrades Ratings of Arab Orient

LONDON, APRIL 28, 2010

A.M. Best Co. has upgraded the financial strength rating to B++ (Good) from B+ (Good) and issuer

credit rating to "bbb" from "bbb-" of Arab Orient Insurance Company (Arab Orient) (Jordan). The

outlook for both ratings has been revised to stable from positive.

The ratings reflect Arab Orient's strong risk-adjusted capitalisation, strengthened leading business

position in its domestic market and continued resilient operating performance.

In A.M. Best's opinion, Arab Orient has demonstrated a very good track record of strong technical

performance, whilst achieving above average growth rates in the Jordanian market. Underwriting

profitability continues to improve, reaching JOD 3.7 million (USD 5.2 million) in 2009, with a

combined ratio below 80%. Additionally, Arab Orient's performance is supported by a conservative

investment strategy providing modest returns between 3%-5%.

A.M. Best believes that Arab Orient has a very good business profile in Jordan, further consolidating

its leading position with a 12% share of gross premiums written in 2009. The company's portfolio

reflects local market characteristics, with 75% of gross premiums written dominated by medical

health care and motor risks.

In 2009, Gulf Insurance Company K.S.C. (GIC) acquired a 55% shareholding in Arab Orient from the

affiliated Jordan Kuwait Bank (JKB), bringing all insurance operations under GIC. A.M. Best views

this as a positive development, opening up the possibility of Arab Orient benefitting from technical

expertise and support from the group. Additionally, the creation of a group reinsurance programme is

expected to provide improved capacity and security for Arab Orient.

Arab Orient's prospective risk-adjusted capitalisation is expected to remain strong over the next two

years, with sufficient retained earnings to support its strategic business plan and a projected growth

of up to 15% per annum.

For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit

Best's Ratings & Analysis.

The principal methodologies used in determining these ratings, including any additional

methodologies and factors that may have been considered, can be found at Best's Credit Rating

Methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization

dedicated to serving the financial and health care service industries, including insurance

companies, banks, hospitals and health care system providers.

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