Standard & Poor’s (S&P) reconfirmed BBB ‘Stable’ long-term counterparty credit and insurer financial strength ratings to Takaful Re Limited (TRL), a Dubai International Financial Centre (DIFC) based Retakaful operator.
According to S&P, the rating is based on TRL’s strong capitalization, strong liquidity, and supportive shareholders, focused on fostering the development of the retakaful industry. Overall key rating factor is based on the company’s extremely strong capital adequacy, as measured by our risk-based capital model, low reliance on retrocession, and prudent reserving practices. According to S&P, TRL benefits from its good brand awareness, technical expertise, knowledge of the takaful markets, and high-quality service.
The stable outlook on TRL reflects Standard & Poor’s expectation that the company will maintain its strong capitalization and liquidity and that it will continue to be supported by its shareholders and will maintain its competitive position within the retakaful segment. S&P expects TRL’s underwriting performance to improve closer to a net combined ratio of around 100% on a conventional basis in 2012 and 2013. This will be supported by enhanced risk management, conservative underwriting, and improved risk selection.
TRL achieved gross written contributions (GWC) of $40 million in 2011.
“Reaffirmation of rating by S&P is recognition to TRL’s proven standing capabilities in the Retakaful sector, which will reinforce the company’s dedication to offer Shari’a compliant reinsurance and related high quality services to the growing Takaful and Islamic Insurance market,” Chakib Abouzaid, CEO of Takaful Re, said.