S&P lowers ratings on UAE's Takaful Re

Standard & Poor's Ratings Services said that it lowered its long-term counterparty credit and insurer financial strength ratings on United Arab Emirates-based Takaful Re Ltd. (TRL) to 'BBB-' from 'BBB'. the ratings agency subsequently withdrew the ratings on TRL at its request. At the time of the withdrawal, the outlook was stable. The downgrade reflects the deterioration of TRL's business risk profile, mostly due to challenges within the Islamic insurance sector that have been exacerbated by the company's lack of scale, S&P said. The stable outlook at the time of withdrawal reflected S&P's view that TRL's risk-based capital would remain at extremely strong levels. This is supported by TRL's excess level of capital relative to its low level of premium income.