A.M. Best withdraws Credit Ratings of ACR ReTakaful MEA B.S.C. (c) and ACR ReTakaful Holdings Ltd
A.M. Best has downgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “bbb” from “bbb+” and affirmed the Financial Strength Rating (FSR) of B++ (Good) of ACR ReTakaful MEA B.S.C. (c) (ACR ReTakaful MEA) (Bahrain).
The outlook of the Long-Term ICR has been revised to stable from negative, while the outlook of the FSR remains stable. A.M. Best also has downgraded the Long-Term ICR to “bb” from “bb+” of ACR ReTakaful Holdings Limited (ACR ReTakaful Holdings) (United Arab Emirates). The outlook of the Long-Term ICR has been revised to stable from negative. Concurrently, A.M. Best has withdrawn these Credit Ratings (ratings) as the companies have requested to no longer participate in A.M. Best’s interactive rating process.
The rating actions on ACR ReTakaful MEA anticipate a lower risk-based capital level, as the company plans to extract a significant amount of surplus capital in the near term, while part of the loss reserve is of a long-term nature. However, the company intends to accelerate the run-off by way of a proactive commutations strategy that will enable early valuation and settlement of liabilities.