AM Best Assigns Credit Ratings to Ilaf Takaful Insurance Company K.S.C. (Closed)
AM Best has assigned a Financial Strength Rating of B++ (Good) and a Long-Term Issuer Credit Rating of “bbb” (Good) to Ilaf Takaful Insurance Company K.S.C. (Closed) (ILAF Takaful) (Kuwait). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect ILAF Takaful’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
AM Best assesses ILAF Takaful’s risk-adjusted capitalisation on a combined basis, including its policyholders’ and shareholders’ fund, due to the requirement that the shareholders’ fund has to support the policyholders’ fund.
ILAF Takaful’s balance sheet strength assessment is underpinned by its risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). AM Best expects prospective risk-adjusted capitalisation to remain comfortably at the strongest level. The balance sheet strength is supported further by the company’s conservative investment strategy and good levels of liquidity. An offsetting factor to the balance sheet strength assessment is the company’s small capital base, which increases the risk of volatility.
