LONDON: AM Best has affirmed the Financial Strength Rating of B (Fair) and the Long-Term Issuer Credit Rating of “bb” of Noor Takaful Family PJSC (NTF) (United Arab Emirates). The outlook of these Credit Ratings (ratings) remains stable.
The ratings reflect NTF’s balance sheet strength, which AM Best categorises as strong, as well as its adequate operating performance, limited business profile and marginal enterprise risk management.
The company’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which remained at the very strong level as at year-end 2017, as measured by Best’s Capital Adequacy Ratio (BCAR). Given NTF’s small capital base, AM Best believes that prospective risk-adjusted capitalisation is susceptible to volatility and dependent on the future growth and performance of the individual family and medical portfolios. The balance sheet strength assessment also considers NTF’s conservative investment portfolio and its proven financial flexibility in the form of capital injections. Capital management actions recently undertaken by the company have ensured NTF is now compliant with local solvency regulations.
NTF has demonstrated a track record of operating profits, generating a five-year (2013-2017) average return on equity of 5.4% that was supported by underwriting profits in most years. Operating results benefit from diversification in earnings between NTF’s family and medical business segments and are further supplemented by investment returns; NTF’s investment portfolio delivered a five-year (2013-2017) average net investment yield (excluding gains) of 2.0%. The company’s future operating earnings will likely be influenced by changes in its business mix as NTF continues to increase its gross contributions in order to achieve its ambitious business plans. NTF’s business profile is limited as a result of the small size of its portfolio concentrated exclusively within the UAE Takaful insurance market.
This press release relates to Credit Ratings 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 see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.
© Press Release 2019Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.
The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.
To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.
