AM Best Revises Outlooks to Positive for Abu Dhabi National Takaful Company P.S.C.
The Credit Ratings (ratings) reflect ADNTC’s balance sheet strength, which AM Best categorises as very strong, as well as its strong operating performance, limited business profile, and appropriate enterprise risk management.
The revision of the outlooks to positive reflects AM Best’s expectation that ADNTC will enhance its position in its domestic market whilst continuing to outperform takaful and conventional insurance peers as it executes its business plan.
AM Best considers the takaful regulations in the
ADNTC reported profit before tax of AED 68.3 million for 2018, equivalent to a return on equity of 20.1%. 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. The company’s five-year (2014-2018) average combined ratio is excellent at 69.9% (63.8% in 2018), with the majority of profit derived from its Family Takaful products. At half-year 2019, despite double-digit growth in gross written contributions, the company’s profit increased by 21.0% to AED 44.8 million, compared with the same period in 2018. AM Best expects the company’s strong operating performance to continue, given its effective underwriting controls and experienced management team.
The company has a modest, albeit growing, profile in terms of top-line in the
This press release relates to Credit Ratings that have been published on AM 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 AM 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 AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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Jessica Botelho-Young, CA
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Source: AM Best
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