A.M. Best Places Ratings of Islamic Arab Insurance Co. (Salama) Under Review Business Wire LONDON -- December 18, 2012 A.M. Best Europe – Rating Services Limited has placed under review with negative implications the financial strength rating of A- (Excellent) and issuer credit rating of “a-” of Islamic Arab Insurance Co. (Salama) (United Arab Emirates). The rating actions are due to the uncertainty regarding its main subsidiary, BEST RE (L) Limited (BEST RE) (Malaysia) and the potential implications for Salama’s capitalization, operating performance and enterprise risk management. Salama’s performance in the first three quarters of 2012 was affected by the adverse development of Thailand flood losses at BEST RE, with Salama’s loss ratio rising to 76% as against 57% in the same period in 2011. Best Re represented 66% of the group’s gross written premium in 2011, and therefore, is material to the group. A.M. Best will continue to monitor developments at Salama and BEST RE in order to ascertain any potential impact on Salama. The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Key criteria utilised include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding BCAR for Property/Casualty Insurers”; “Rating Members of Insurance Groups”; and “Insurance Holding Company and Debt Ratings”. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology. In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M. Best Europe - Rating Services Limited Supplementary Disclosure. A.M. Best Europe – Rating Services Limited is a subsidiary of A.M. Best Company. Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com. Copyright © 2012 by A.M. Best Company, Inc. ALL RIGHTS RESERVED. Contact: A.M. Best Michael Dunckley, +(44) 20 7397 0321 Associate Financial Analyst email@example.com or Mahesh Mistry, +(44) 20 7397 0325 Associate Director firstname.lastname@example.org or Rachelle Morrow, +(1) 908 439 2200, ext. 5378 Senior Manager, Public Relations email@example.com or Jim Peavy, +(1) 908 439 2200, ext. 5644 Assistant Vice President, Public Relations firstname.lastname@example.org
A.M. Best Places Ratings of Islamic Arab Insurance Co. (Salama) Under Review
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