AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of 'a-' of
The outlook of these Credit Ratings (ratings) is positive.
The ratings reflect ADNTC's balance sheet strength, which AM Best categorises as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
The positive outlooks reflect AM Best's expectation that ADNTC will enhance its position in its domestic market whilst continuing to outperform takaful and conventional insurance peers as it executes its business plan.
AM Best considers the takaful regulations in the
ADNTC has exhibited strong and consistent operating performance despite highly competitive market conditions, as evidenced by its five-year (2015-2019) average combined ratio of 66.2% and return on equity of 17.7%. Technical performance improved for the third consecutive year in 2019, with the company generating a combined ratio of 61.9% (as calculated by AM Best). The Family Takaful portfolio continues to be the main contributor to technical results. AM Best expects earnings to remain robust prospectively, although top-line growth may be challenged in the near term due to weaker sales in the Family Takaful portfolio as a result of the economic downturn related to the COVID-19 pandemic.
The company has a modest, albeit growing, profile in terms of business written in the
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