Best’s News & Research Service - March 31, 2022 10:40 AM (EDT)
AM Best Places Credit Ratings of National Takaful Company (Watania) PJSC Under Review With Negative Implications
- March 31, 2022 10:40 AM (EDT)
London //BestWire// - AM Best has placed under review with negative implications the Financial Strength Rating of B (Fair) and the Long-Term Issuer Credit Rating of “bb+” (Fair) of National Takaful Company (Watania) PJSC (Watania) (United Arab Emirates).
These Credit Rating (rating) actions follow the announcement on 3 March 2022 that Dar Al Takaful PJSC (DAT) has reached an agreement with Watania on a prospective merger between both companies. The transaction, which is subject to shareholder and regulatory approvals, is expected to complete during the third quarter of 2022.
The under review with negative implications status reflects DAT’s weaker credit fundamentals and the potential negative impact the transaction may have on Watania’s prospective credit fundamentals. Additionally, the newly created group’s strategic direction and consolidated financial strength will need to be determined. AM Best will conduct detailed discussions with management regarding its planned strategy for the combined group. The ratings are expected to remain under review pending the completion of the transaction and AM Best’s further discussions with group management.
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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.