Fort Mill Times

A.M. Best Withdraws Ratings of Boubyan Takaful Insurance Company KSC (CLOSED)

A.M. Best Europe – Rating Services Limited has revised the outlook to stable from positive and affirmed the financial strength rating of C++ (Marginal) and the issuer credit rating of “b” of Boubyan Takaful Insurance Company (Kuwait). The revised outlook reflects Boubyan’s decision not to ring-fence assets in favour of policyholders. The risk-adjusted capitalisation of Boubyan’s policyholders’ fund remains weak. Additionally, recent management turnover adds uncertainty to the future performance of the company. Boubyan has experienced volatile operating results and is a small player in the Kuwaiti market. Concurrently, A.M. Best has withdrawn the ratings as the company has requested to no longer participate in A.M. Best’s interactive rating process.

A.M. Best Special Report: GCC Takaful Regulation Lags Market Growth, Creating Uneven Playing Field

According to a new report from A.M. Best Co. the development of Takaful regulation varies significantly between the countries of the GCC. As a result, the levels of policyholder protection differ from one state to another, which has created opportunities for Takaful operators to pursue regulatory arbitrage. A.M. Best believes the solution is a more consistent application of regulation, and therefore provide sufficient policyholder protection.

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