Free Submission Public Relations &
Deutsch English


A.M. Best Affirms Ratings of National Takaful Company (Watania) PJSC

Print article Print article
© Business Wire 2014
2014-03-13 17:24:02 -

A.M. Best has affirmed the financial strength rating of B+ (Good) and issuer credit rating of "bbb-" of National Takaful Company (Watania) PJSC (Watania) (United Arab Emirates). The outlook for both ratings remains stable.

The ratings reflect Watania’s strong prospective risk-adjusted capitalisation and its developing market profile. An offsetting rating factor is the execution risk associated with Watania’s expansion plan in a highly competitive domestic insurance market.

Watania benefits from strong current and prospective risk-adjusted capitalisation with sufficient capital to support its strategic plan.
The company’s capital position benefits from a conservative investment strategy, focused on fixed income securities and low underwriting leverage. Counter-party credit risk arising from high reinsurance cessions is supported by a strong reinsurance panel. In 2013, Watania’s overall

earnings were in line with expectations, reporting a marginal operating loss of AED 2.4 million (USD 0.7 million). Underwriting performance was affected by high claims experience on motor and property business lines, but this was offset by improved investment returns.

Watania remains a small company in the highly competitive UAE insurance market. The challenge of achieving a stronger market profile, while writing profitable business, represents a significant level of execution risk.

The rating is well placed at the current level. Upward or downward rating movement will be tied to Watania’s ability to successfully execute its business plan.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M.

Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at : .. .

In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M.

Best Europe - Rating Services Limited Supplementary Disclosure : .. .

A.M. Best Europe – Rating Services Limited is a subsidiary of A.M.

Best Company. A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit : .. .

Copyright © 2014 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

" title="\"/>" target="_blank" rel="nofollow"> ..

A.M. Best Company, Inc.Michael Dunckley, +(44) 20 7397 0321Associate

Financial Analyst : orMahesh

Mistry, +(44) 20 7397 0325Director, Analytics : orRachelle

Morrow, +(1) 908-439-2200, ext. 5378Senior Manager, Public
Relations : orJim

Peavy, +(1) 908-439-2200, ext. 5644Assistant Vice President,
Public Relations :

Hossam Abdel-Kader
Phone: +43 1 9582319

Disclaimer: (c) 2014 Business Wire. All of the news releases contained herein are protected by copyright and other applicable laws, treaties and conventions. Information contained in the releases is furnished by Business Wire's members, who warrant that they are solely responsible for the content, accuracy and originality of the information contained therein. All reproduction, other than for an individual user's personal reference, is prohibited without prior written permission.
Latest News
Read the Latest News


Terms & Conditions | Privacy | About us | Contact