LONDON--(BUSINESS WIRE)--AM Best has placed under review with developing implications the Financial Strength Ratings (FSR) of B (Fair) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “bb” of Noor Takaful General PJSC (NTG) (United Arab Emirates) and Noor Takaful Family PJSC (NTF) (UAE).
These Credit Rating (rating) actions follow the announcement on 18 February 2020 by Dar Al Takaful PJSC (UAE), a mid-sized Takaful company operating in the UAE market, that it has entered into exclusive negotiations to acquire NTG and NTF. The transaction, which is subject to regulatory and shareholder approval, is expected to be completed in the second quarter of 2020.
The ratings have been placed under review with developing implications, as AM Best needs to assess the impact of the planned change in ownership of NTG and NTF on their credit fundamentals, including their standalone risk-adjusted capitalisation. In addition, AM Best will review the expected post-acquisition consolidated financial strength of the new parent, including financial leverage, and the impact that this could have on NTG and NTF. AM Best also will conduct detailed discussions with management regarding its planned strategy for NTG and NTF as subsidiaries of Dar Al Takaful PJSC. The ratings are expected to remain under review pending the completion of the transaction and AM Best’s discussion with new ownership.
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