AM Best Affirms Credit Ratings of Egyptian Takaful Properties and Liabilities Insurance Company (Egyptian Joint Stock Company)
AM Best has affirmed the Financial Strength Rating of B- (Fair), the Long-Term Issuer Credit Rating of “bb-” (Fair) and the Egypt National Scale Rating of aa+.EG (Superior) of Egyptian Takaful Properties and Liabilities Insurance Company (Egyptian Joint Stock Company) (Egyptian Takaful) (Egypt). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Egyptian Takaful’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and marginal enterprise risk management (ERM).
AM Best assesses the company’s risk-adjusted capitalisation on a combined basis, including its policyholders’ and shareholders’ funds, due to the stated mandate within its articles of association that require the shareholders’ fund to support the policyholders’ fund. Egyptian Takaful’s risk-adjusted capitalisation at year-end 2025 fell to the weak level, as measured by Best’s Capital Adequacy Ratio (BCAR), due primarily to material underwriting losses stemming from its legacy credit insurance portfolio. The balance sheet strength assessment factors in the expected improvement of the company’s BCAR score over the short term. Despite Egyptian Takaful’s conservative investment allocation by asset class, AM Best considers the quality of its assets to be weak given the company’s concentration in Egypt. The company has a relatively high reliance on reinsurance, evident by an insurance revenue retention ratio of 43.4% in 2025. However, the associated counterparty credit risk is mitigated by the use of a financially strong reinsurance panel.
