A.M. Best has affirmed the financial strength rating of B++ (Good) and the issuer credit rating of “bbb” of Takaful International Company B.S.C. (TIC) (Bahrain). The outlook for both ratings remains stable. Concurrently, A.M. Best has withdrawn the ratings as the company has requested to no longer participate in A.M. Best’s interactive rating process.
The affirmations reflect TIC’s sound domestic profile, adequate risk-adjusted capitalisation and consistent record of underwriting profitability. An offsetting rating factor is the company’s marginal overall earnings.
TIC is the Bahrain’s largest takaful operator and ranks among its top five largest insurers, as measured by gross written premium. The company’s level of risk-adjusted capitalisation is adequate for its ratings, although profit distribution during 2014 has limited growth of the company’s capital and surplus. Whilst TIC has generated a modest return on shareholders’ equity over the past five years, it has consistently reported underwriting profits. However, the level of underwriting profitability is on a declining trend with non-life combined ratio likely to be around 100% for 2014.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Key insurance criteria reports utilised:
- Catastrophe Analysis in A.M. Best Ratings
- Evaluating Country Risk
- Risk Management and the Rating Process for Insurance Companies
- Takaful (Shari'a Compliant) Insurance Companies
- Understanding Universal BCAR
In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M. Best Europe - Rating Services Limited Supplementary Disclosure.
This press release relates to rating(s) that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best’s Ratings & Criteria Center.
A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2015 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.
