corporate finance

INDUSTRY ANALYSIS (INSURANCE ) DUBAI

ARAB ORIENT INSURANCE : Arab orient insurance company started its operations in 1982 under a group of Al Futtaim Group . The company has been continuously growing at a sustainable growth with increase in profits as well as Net income . In FY07 the company 's income was around Dhs . 767 Million and Net Profit of Dhs . 136 million . This company is known as one of the best insurance company in the market as compared to its competitors . The company has a paid up capital of around Dhs 250 ,000 ,000

. The rating of Arab Orient Insurance is (A- ) as of 2007 given by Standard and Poor (S

. AOI is desired to fulfill the needs of its customers with the experience of 25 yrs in the market . They have a strong financial base which keeps them ahead of its competitors

RATIO ANALYSIS OF ARAB OREINT INSURANCE : Financial results and its performance is measured through Ratio Analysis to check whether financially it is competitive or not

1 . Short Term Solvency or Liquidity Ratios : The first Ratio is current ratio which is (Current assets /Current Liabilities . AOI current ratio is 1 .029 AED which means that AOI has Dhs 1 .029 in current assets for every 1 Dhs in current liabilities . The second ratio is the quick ratio [ (Current Assets-Inventory /Receivables] , which is 0 .0639 times . The third ratio is cash ratio [ (Cash marketable Sec /current liabilities] which is 0 .056 times , that means that for every 1...