LONDON--(BUSINESS WIRE)--A.M. Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” of Emirates Retakaful Limited (ERL) (United Arab Emirates). The Credit Ratings (ratings) have been removed from under review with negative implications. The outlook assigned to these ratings is negative. Concurrently, A.M. Best has withdrawn the ratings as the company has requested to no longer participate in A.M. Best’s interactive rating process.
The ratings reflect ERL’s balance sheet strength, which A.M. Best categorises as very strong, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management. The negative outlooks reflect the company’s diminishing business profile, which is expected to shrink materially in 2018, and pressure on risk-adjusted capitalisation, in case capital is withdrawn. The company has gradually de-risked its investment portfolio over the past six months, and A.M. Best expects risk-adjusted capitalisation to remain strongest over the medium term, subject to the shareholders retaining capital in the company. The company’s operating performance remains modest and has been impacted by a contribution write-off in 2016.
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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