AM Greatest affirms the credit score rankings of Qatar Islamic Insurance coverage Group QPSC

LONDON–(COMMERCIAL WIRE)–I’m higher has affirmed the Monetary Power Ranking of A- (Glorious) and the Lengthy-Time period Issuer Credit score Ranking of “a-” (Glorious) of Qatar Islamic Insurance coverage Group QPSC (QIIG) (Qatar). The outlook on these Credit score Rankings (rankings) is secure.

The rankings replicate QIIG’s stability sheet energy, which AM Greatest assesses as very robust, in addition to its robust working efficiency, restricted enterprise profile and ample enterprise threat administration.

QIIG employs a hybrid takaful mannequin, whereby the shareholder fund prices the insured fund (PHF) a Wakala payment primarily based on gross written contributions (GWC) and a Mudaraba payment primarily based on funding earnings. QIIG’s capability to build up surplus inside the PHF, whereas periodically distributing the excess to policyholders, helps the sustainability of its takaful mannequin.

QIIG’s stability sheet energy is supported by its risk-adjusted capitalization, which was at its strongest degree on the finish of 2021, as measured by Greatest’s Capital Adequacy Ratio (BCAR), and is anticipated to stay secure. on the strongest degree within the medium time period. Supporting the evaluation of stability sheet energy is QIIG’s constant demonstration of inside capital technology. Capital and surplus grew 7.3% in 2021 to QAR 424.8 million (USD 117.5 million) (development of 10.3% when together with policyholder fund to QAR 652.3 million) [USD 180.5 million]). Whereas QIIG maintains adequate liquidity to assist its insurance coverage operations, it has vital holdings of illiquid belongings within the type of actual property and investments in associates, which represented roughly 45% of its whole investments on the finish of 2021. QIIG is reasonably reliant on reinsurance , because the group provides up a excessive proportion of its giant industrial dangers.

QIIG reported a internet earnings of QAR 80.1 million (USD 22.2 million) in 2021, equal to a return on fairness of 12.9%, demonstrating its capability to generate robust working returns. Profitability is primarily pushed by QIIG’s robust and secure underwriting outcomes, demonstrated by a five-year (2017-2021) weighted common mixed ratio of 66.7%. QIIG’s funding returns have been modest in recent times, pushed by honest worth losses arising on actual property and impairments on investments in associates.

QIIG occupies a distinct segment place inside its home insurance coverage market, as a longtime supplier of Shari’a-compliant merchandise. In 2021, QIIG reported a 7% enhance in contributions in comparison with 2020, writing a GWC of QAR 428.6 million (USD 118.6 million). The group’s operations are concentrated in Qatar, the place it maintains a powerful popularity that advantages from its observe document of distributing surpluses to its policyholders. As well as, the group is a member of the Nationwide Insurance coverage Consortium, which supplies QIIG with entry to giant authorities infrastructure contracts.

This information launch pertains to credit score rankings which have been posted on AM Greatest’s web site. For full ranking info associated to the discharge and pertinent disclosures, together with particulars of the workplace accountable for issuing every of the person rankings referenced on this launch, please see AM Greatest’s Current Ranking Exercise Net web page. For added info on the use and limitations of credit standing opinions, see Greatest Credit score Rating Information. For info on the right use of Greatest’s Credit score Rankings, Greatest’s Efficiency Evaluations, Greatest’s Preliminary Credit score Evaluations, and AM Greatest’s press releases, see Information to the right use of Greatest rankings and evaluations.

AM Greatest is a world credit standing company, information writer and information analytics supplier specializing within the insurance coverage trade. Headquartered in the US, the corporate operates in additional than 100 nations with regional workplaces in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico Metropolis. For extra info go to www.ambest.com.

Copyright © 2022 by AM Greatest Ranking Companies, Inc. and/or its associates. ALL RIGHTS RESERVED.

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