CONTACTS:
FOR IMMEDIATE RELEASE
LONDON - FEBRUARY 27, 2020 11:00 AM (EST)
AM Best has placed under review with developing implications the Financial Strength Ratings (FSR) of B (Fair) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “bb” of Noor Takaful General PJSC (NTG) (United Arab Emirates) and Noor Takaful Family PJSC (NTF) (UAE).
These Credit Rating (rating) actions follow the announcement on 18 February 2020 by Dar Al Takaful PJSC (UAE), a mid-sized Takaful company operating in the UAE market, that it has entered into exclusive negotiations to acquire NTG and NTF. The transaction, which is subject to regulatory and shareholder approval, is expected to be completed in the second quarter of 2020.
The ratings have been placed under review with developing implications, as AM Best needs to assess the impact of the planned change in ownership of NTG and NTF on their credit fundamentals, including their standalone risk-adjusted capitalisation. In addition, AM Best will review the expected post-acquisition consolidated financial strength of the new parent, including financial leverage, and the impact that this could have on NTG and NTF. AM Best also will conduct detailed discussions with management regarding its planned strategy for NTG and NTF as subsidiaries of Dar Al Takaful PJSC. The ratings are expected to remain under review pending the completion of the transaction and AM Best’s discussion with new ownership.
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 Guide to 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.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.