The ratings reflect Noor Takaful’s balance sheet strength which the rating agency categorised as strong as well as its marginal operating performance, limited business profile and marginal enterprise risk management.
Thursday 31, January 2019 BY KUDAKWASHE MUZORIWA
AM Best has affirmed its B financial strength rating of Noor Takaful with a stable outlook.
In a statement, the rating agency stated that Noor Takaful’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which remained at the strongest level as at year-end 2017, as measured by A Best’s Capital Adequacy Ratio (BCAR).
The Takaful company’s business profile is limited as a result of the small size of its portfolio concentrated exclusively within the UAE Takaful insurance market.
AM Best believes Noor Takaful’s prospective risk-adjusted capitalisation is prone to volatility and dependent on the portfolio’s future growth and performance given the firm’s small capital base.
Additionally, AM stated that the balance sheet strength assessment also considers Noor Takaful’s conservative investment portfolio and its proven financial flexibility in the form of capital injections. The insurance firm’s capital management actions recently have ensured its compliant with local solvency regulations.