Again, Moody’s affirms Aa3 Rating for ICIEC with stable outlook

By Benjamin Orisemeke

Moody’s Ratings affirmed ICIEC’s Aa3 Insurance Financial Strength Rating (IFSR) with a stable outlook for the 17th consecutive year, underscoring its strong standalone credit profile and ongoing support from key shareholders, including the Islamic Development Bank (IsDB) and sovereign members of the Organization of Islamic Cooperation (OIC).

Key factors contributing to this affirmation include ICIEC’s leadership in Shariah-compliant export credit and investment insurance, deep regional expertise, solid asset quality, and strong capital adequacy.

Moody’s recognized ICIEC’s proactive efforts to enhance risk management and improve underwriting performance, which have strengthened its capital position and enabled sustained profitability, reflected in a combined ratio of 9.7% and net income of Islamic Dinar (ID) [1] 17.9 million. The Corporation’s solid financial performance has been driven by a diversified business mix, reduced exposure concentrations, and operational efficiency improvements.

ICIEC’s success is further reinforced by shareholder backing, particularly from IsDB and the largest shareholder member country- Saudi Arabia, with Moody’s anticipating continued support if necessary. At year-end 2023, IsDB held a 50.48% stake in ICIEC, with other sovereign OIC members contributing as shareholders. ICIEC also benefits from strategic synergies as part of the IsDB Group.

To support future growth aligned with its mandate of providing political risk and trade-related insurance for OIC countries, ICIEC’s shareholders continue to play a vital role. In 2022, ICIEC’s Board of Governors approved a 150% increase in authorized capital to ID 1 billion ($1.34bn), with the subscription period for this increase set to conclude in June 2025. This will raise subscribed capital to ID 797 million ($ 1.1bn) from the current ID 297 million ($ 398m).

The stable outlook reflects Moody’s confidence in ICIEC’s ability to maintain strong capital, asset quality, and profitability while prudently expanding its operations. It also signals expectations of continued support from IsDB and OIC member countries.