S&P upgrades SALAMA's rating to BBB
Wednesday, 07 24 2019, Category: Rating, Country: U.A.E
Islamic Arab Insurance Company (“SALAMA”) welcomes Standard and Poor’s Global Ratings’ (“S&PGR”) move to upgrade the financial strength and issuer credit rating of SALAMA from ‘BBB-‘ to ‘BBB’ with stable outlook.
The rating reflects SALAMA’s position as the largest Shari’a-compliant insurer in the UAE with ‘AAA’ level capital adequacy.
SALAMA posted impressive revenue growth of 25 per cent with net income of Dh18m in the first quarter of 2019. S&PGR looked into SALAMA’s efforts to improve its investment portfolio and efforts to move away from unrated speculative-grade instruments. Positive factors such as improved operating performance in the last two years including in Q1-2019 and net combined ratio (loss and expense) of 97 per cent contributed to the upgrade.
Commenting on the upgrade, SALAMA’s Managing Director, Mustafa Kheriba, said, “SALAMA’s position as the UAE’s largest Takaful operator and strong Q1-2019 performance reflects our relentless efforts to further Takaful growth in the region. We thank our partners, employees and shareholders for their support to achieve this rating upgrade.”