A.M. Best Co. has assigned a financial strength rating of “B++” (Good) and an issuer credit rating of “bbb+” to the United Arab Emirates SALAMA Islamic Arab Insurance Co. (P.S.C.) with a stable outlook.
“The ratings reflect the company’s strong risk-adjusted capitalization, which is supported by very good operating performance,” said Best, who also indicated that it expects the Company to achieve a combined ratio of 96 percent, “translating into an after-tax profit of approximately $50 million. Operating performance is likely to remain strong in 2007 as underwriting conditions remain good across the main lines of business written by the company.
“Dubai-based SALAMA has a good business profile as one of the largest Takaful and Retakaful companies in the Arab world and operates through different subsidiaries including B.E.S.T. Reinsurance (Tunisia), which is the most important,” the report continued.
Best also indicated that in its opinion, “SALAMA has good growth prospects as a result of the increasing demand for Shari’ah compliant products. The company is expected to have written approximately $180 million in gross premiums written (GPW) in 2006 and is likely to write approximately $200 million in GPW in 2007.”
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