"The ratings on TRL reflect its strong capitalization, supportive shareholder base, conservative investment portfolio, and flexible cost base due to the outsourcing agreement in place," said Standard & Poor's credit analyst Jelena Bjelanovic.
These positive factors are partially offset, however, by the high execution risk faced by TRL, the still underdeveloped takaful market segment, and TRL's developing competitive position.
The stable outlook on TRL reflects our expectation that the company will continue to be supported by its major shareholder, Arab Insurance Group (B.S.C.) (Arig; BBB/Stable/--), through the outsourcing agreement in place. At the same time, TRL's competitive position within the retakaful segment will continue to improve with the company's growing presence in the Middle East and North Africa region and the Far East. Standard & Poor's expects TRL's business flow prospectively to strengthen, and to at least track the direct market growth of about 20% per year in the next 12-24 months. Earnings are expected to be broadly in line with TRL's budget, achieving a combined ratio of about 100% in 2007. The ratings on TRL are currently capped by Arig's significant operational input to the company, and any change to the ratings on Arig may cause the ratings on TRL to be reviewed.
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Dubai-based reinsurer Takaful Re Ltd. rated 'BBB'; outlook stable
- United Arab Emirates: Saturday, November 04 - 2006 at 10:05
- PRESS RELEASE
Standard & Poor's Ratings Services said it assigned its 'BBB' long-term counterparty credit and insurer financial strength ratings to Dubai-based reinsurer Takaful Re Ltd. (TRL).
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Ratings information is available to subscribers of RatingsDirect, the real-time Web-based source for Standard & Poor's credit ratings, research, and risk analysis, at www.ratingsdirect.com. It can also be found on Standard & Poor's public Web site at www.standardandpoors.com; under Credit Ratings in the left navigation bar, select Find a Rating, then Credit Ratings Search. Alternatively, call one of the following Standard & Poor's numbers: Client Support Europe (44) 20-7176-7176; London Press Office Hotline (44) 20-7176-3605; Paris (33) 1-4420-6708; Frankfurt (49) 69-33-999-225; Stockholm (46) 8-440-5914; or Moscow (7) 495-783-4017.Analyst Contacts:
Jelena Bjelanovic, London (44) 20-7176-7076
Kevin Willis, London (44) 20-7176-7085
Isobel McCalman, London (44) 20-7176-7233
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Standard & Poor's, a division of The McGraw-Hill Companies (NYSE:MHP), is the world's foremost provider of financial market intelligence, including independent credit ratings, indices, risk evaluation, investment research and data. With approximately 7,500 employees, including wholly owned affiliates, located in 21 countries. Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for more than 140 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions.
Posted by Lara Lynn Golden, News EditorSaturday, November 04 - 2006 at 10:05 UAE local time (GMT+4)
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This article was updated on Wed Jan 24 2007.
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