Takaful

AM Best revises Abu Dhabi National Takaful Company’s outlook

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The revision of the outlook reflects AM Best’s expectation that the insurance company will enhance its position in its domestic market whilst continuing to outperform takaful and conventional insurance peers as it executes its business plan.

Sunday 08, September 2019 BY KUDAKWASHE MUZORIWA

AM Best has revised Abu Dhabi National Takaful Company’s (ADNTC) outlook to positive from stable, considering the takaful regulations in the UAE to be strong, given the protection it provides to policyholders.

The rating agency also affirmed its A- financial strength rating and a- long-term issuer credit rating of ADNTC.

According to AM Best, the credit rating reflects the insurance company’s balance sheet strength and its strong operating performance, limited business profile and appropriate enterprise risk management.

Whilst ADNTC’s asset base is concentrated in the UAE, the company holds a low-risk investment portfolio that is considered highly liquid and has one of the lowest balance of debtors in the market.

AM Best stated that ADNTC reported profit before tax of AED 68.3 million for 2018, equivalent to a return on equity of 20.1 per cent, the company’s overall earnings are driven predominately by its underwriting operations, which have generated strong results and historically have exhibited a relatively low level of volatility. 

ADNTC has a modest, albeit growing, profile in the UAE insurance market benefiting from a solid reputation as one of the most successful takaful operators in the market, which is complemented by its strong relationships with local Islamic banks. 

 

TAGS : Abu Dhabi National Takaful Company, AM Best, Islamic banks, takaful

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