London–(BUSINESS WIRE)–
AM Best Abu Dhabi National Takaful Company PSC (ADNTC) has affirmed its financial strength rating of A- (excellent) and long-term issuer credit rating of ‘a-‘ (excellent) (United Arab Emirates). The outlook for these credit ratings is stable.
The rating reflects the strength of ADNTC’s balance sheet, which AM Best rates as very strong, as well as its strong operating results, limited business profile and adequate corporate risk management.
AM Best United Arab Emirates Given the protection it provides to policyholders, it needs to be strong enough. ADNTC’s risk-adjusted capital is at its strongest level, as measured by the Best’s Capital Adequacy Ratio (BCAR) on a combined policyholder and shareholder fund basis. AM Best expects its future risk-adjusted capital to remain adequate to support its strategic plans. For regulatory approval. ADNTC has a generally conservative investment strategy, with more than 50% of its investment assets held in cash and deposits at the end of 2021. Enhance your return on investment. An offsetting factor in ADNTC’s balance sheet strength assessment is its heavy reliance on reinsurance. This increased after changes in the reinsurance structure of the Family Takāful (life insurance) business in 2020. However, the associated credit risk is managed using a reinsurance panel. Sound financial structure.
ADNTC has a strong performance track record of a five-year (2017-2021) weighted average return on equity of 17.3%. The company has a history of strong underwriting performance in both general and family takaful portfolios.Following extreme driving conditions United Arab Emirates Structural changes made by ADNTC have particularly affected the company’s family (life) takaful business, which underwrote a second consecutive year of diminished returns in 2021.US$3.4 million) in 2021, AED 15.2 million (US$4.1 million) in 2020, AED 70.3 million (US$19.1 million) 2019 (calculated by AM Best). Management actions taken in 2020 and beyond, including the restructuring of the family’s takaful reinsurance program and strategic diversification of the underwriting portfolio, are expected to help maintain strong underwriting performance over the next few years.
The company has an established position in its niche United Arab Emirates A successful insurance market as a Takaful operator, supported by established and strong distribution channels. After several years of strong annual top-line growth, the company experienced a reduction in its total revenue contributions during his two years of 2020 and 2021. The impact is more pronounced in the company’s family his takaful portfolio than in the general takaful portfolio, the former being more sensitive. Subject to significant product changes in recent years, subject to macroeconomic conditions.
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AM Best is a global credit rating agency, news publisher and data analytics provider dedicated to the insurance industry.Head office location usathe company operates in more than 100 countries and its regional offices are: London, AmsterdamDubai, Hong Kong, Singapore When Mexico CityFor more information, please visit www.ambest.com.
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Romeo Berti
financial analyst
+44 20 7397 0267
[email protected]
Alex Rafferty
Associate Director, Analytics
+44 20 7397 0312
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Christopher Sharkey
manager, public relations
+1 908 439 2200, ext. 5159
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Al Surabin
communication specialist
+1 908 439 2200, ext. 5098
[email protected]
Source: AM Best