Kuwait – Mubasher: Moody's Investors Service has affirmed the ‘Ba1’ insurance financial strength rating (IFSR) of T'azur Takaful Insurance Company, and changed the outlook to ‘Positive’ from ‘stable’.
The rating agency said the change in outlook reflects the continued improvements T'azur has made in asset quality and profitability, with the return on capital (ROC) of 5.8% and a 94.0%
combined ratio (COR) on average between 2011 and 2015, according to a recent statement by Moody’s.
In terms of the overall Kuwaiti insurance market, T'azur has a market share of 1.7% and ranked 12th in 2015.
This position has been volatile due to the severe pricing competition in the market and the resulting pressure on premiums, Moody’s said.
“Despite this volatility, T'azur has continued to improve its underwriting results, translating to a strong 5-year average COR of 94.0%, 5-year average ROC of 5.8% and a good Sharpe ratio of return on capital of 389.7%,” it added.
As a result, T'azur has been reducing its accumulated policyholders' deficit, resulting in an accumulated deficit of KWD 0.2 million which represents 3% of consolidated equity at YE 2015 from KWD 0.3 million representing 5% of consolidated equity at YE 2014 and prior higher levels.
