JUNE 25, 2026 11:32 AM (EDT)

AM Best Assigns Credit Ratings to Ilaf Takaful Insurance Company K.S.C. (Closed)

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FOR IMMEDIATE RELEASE

LONDON - JUNE 25, 2026 11:32 AM (EDT)
AM Best has assigned a Financial Strength Rating of B++ (Good) and a Long-Term Issuer Credit Rating of "bbb" (Good) to Ilaf Takaful Insurance Company K.S.C. (Closed) (ILAF Takaful) (Kuwait). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect ILAF Takaful's balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

AM Best assesses ILAF Takaful's risk-adjusted capitalisation on a combined basis, including its policyholders' and shareholders' fund, due to the requirement that the shareholders' fund has to support the policyholders' fund.

ILAF Takaful's balance sheet strength assessment is underpinned by its risk-adjusted capitalisation at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR). AM Best expects prospective risk-adjusted capitalisation to remain comfortably at the strongest level. The balance sheet strength is supported further by the company's conservative investment strategy and good levels of liquidity. An offsetting factor to the balance sheet strength assessment is the company's small capital base, which increases the risk of volatility.

ILAF Takaful has demonstrated a track record of sound operating performance, reporting a good balance of earnings between its policyholders' and shareholders' funds in recent years. Since 2023, the company has continued to report a surplus in its policyholders' fund. Underwriting performance has been a leading driver of overall profitability, with a four-year (2022-2025) weighted average net-net combined ratio of 88%. Whilst ILAF Takaful has seen some volatility on individual lines of business, the company has demonstrated its underwriting control and selection to quickly remediate loss making business.

ILAF Takaful maintains a niche position as a small takaful company operating within Kuwait's insurance market. Whilst premiums are concentrated geographically, diversification is generated by product offering. The company's business profile benefits from its affiliation with its ultimate parent, Fouad Alghanim & Sons Group of Companies Holding W.L.L., where it derives around 50% of its written premium.

AM Best views ILAF Takaful's risk capabilities as appropriate relative to the size and complexity of its operations. AM Best expects the company will develop its ERM framework over the near to medium term with the help of external consultants.

This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings (BCR), Best's Performance Assessments (PA), Best's Preliminary Credit Assessments (PCA) and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.