OLDWICK, N.J., JUNE 02, 2009 A.M. Best Co. has revised the outlook to positive from stable and affirmed the financial strength rating of B+ (Good) and issuer credit rating of "bbb-" of Arab Orient Insurance Company

(ArabOrient) (Jordan). The ratings reflect Arab Orient's strong risk-adjusted capitalisation, leading business position in its domestic market and good operating performance.

Offsetting factors include its significant reliance

on reinsurance given its low retention levels. The positive outlook reflects the company's continued improving risk-adjusted capitalisation, combined with its abil ity to consistently grow its business while improving underwriting profitability.

A.M. Best will closely monitor these key indicators in light of the company's strategic business plans, in addition to developments in its risk management framework. 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, with projected growth of up to 20% per annum. Additionally, in A.M.

Best's opinion, further planned capital increases would alleviate credit risk pressure in the event of large losses, given Arab Orient's low retention levels. A.M. Best believes that Arab Orient has a very good business position in Jordan, establishing itself as a market leader with an approximate 9.7% share of gross premiums written in 2008.

The company's portfolio reflects local market characteristics, with approximately 65% of gross premiums written dominated by medical heal th care and motor risks. Arab Orient's operating performance has been good, with pre-tax profits of JOD 2.8 million (USD 4.0 million) in 2008,  compared to JOD 1.9 million (USD 2.7 million) in 2007, arising from improved underwriting profitability. The company reported combined ratios below 90% and modest returns on investments given current economic conditions. 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. View a list of companies related to this press release. The list will include Best's Ratings along with links to additional company specific information including related news and reports.