Sep 01 2012
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CSR upgrades Boubyan Takaful Insurance to BB
The new strategy of the company touches upon many important areas such as the separation of underwriting and claims settlement, the enhanced distribution network and the improved corporate governance standards. The support BTIC received from Boubyan Bank ( BB ) and National Bank of Kuwait (NBK) has been instrumental, and has provided the company an advantage in comparison to the new takaful entrants. The rating is constrained by the high underwriting costs and investment losses contributed to the company's overall losses.
Expenses may continue to remain high in the near future as BTIC is in the expansion phase. Further, the investment losses have been negatively impacting profitability of BTIC for the past three years. The rating is also positively impacted by the changes that CSR made to the "Insurance Rating Methodology". The rating methodology used in rating BTIC is "Insurance Rating Methodology", and the "Takaful - Rating Approach" and it can be found at www.capstandards. com in the 'methodologies brief' subdirectory under the Rating tab. BTIC was established in 2006 to provide insurance products in compliance with the Islamic Sharia Principles (Takaful).
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