IIRA assigns fiduciary ratings to Islamic Insurance Company | IIRA assigns fiduciary ratings to Islamic Insurance Company -
IIRA

IIRA assigns fiduciary ratings to Islamic Insurance Company

: Thursday, April 03 - 2014 @ 11:18

Islamic International Rating Agency ‘IIRA’ has assigned a national scale Takaful Financial Strength ‘TFS’ rating of ‘A ‘jd’ ‘Single A’ to Islamic Insurance Company Jordan ‘IIC’. Outlook on the assigned rating is ‘Stable’. The fiduciary score has been assessed in the range of ‘71-75’, reflecting adequate fiduciary standards. The fiduciary score is an aggregation of scores assigned to its two sub-sections i.e. Asset Manager Quality and Shari’a Governance.

IIC is the oldest Islamic and one of the most prominent insurance companies operating in Jordan, having a market share of 4%. The company also derives business synergies from its main sponsor, Jordan Islamic Bank ‘JIB’, the country’s largest Islamic bank and part of Albaraka Banking Group ‘ABG’. The company enjoys strong franchise in the local market and has generated steady business growth over its recent operating history.

Insurance industry is highly competitive and fragmented in Jordan. While the socioeconomic situation in the country has restricted growth in traditional lines of business such as fire and marine insurance, low insurance penetration overall leaves room for further growth. Domestic regulatory environment is also encouraging, with specific licenses issued to takaful operators and restriction on establishing takaful windows.

Growth in gross contribution written by IIC has averaged 10% over the past five years. The company has presence in both general and social takaful segments. Overall both participants’ takaful and shareholders’ fund have been profitable, and improving further in recent periods. Liquidity and profitability indicators of the company are also strong. Underwriting results vary amongst business lines, with social and marine segments being consistently positive, whereas motor and medical segments produce weak results. Regulated pricing and business generation under compulsory third party liability motor insurance have affected financial results of motor segment across industry.

Senior management team of IIC has a high level of understanding of takaful precepts, which bodes well for implementation of Shari’a principles in the company as well as execution of business operations. Members of SSC are qualified and renowned Shari’a scholars, promoting Islamic finance through research, serving Shari’a Boards of other financial institutions and academic linkages. Organizational culture encourages transparency and Shari’a conformance though there remains room for improvement in policy documentation and disclosures available to various stakeholders. Board of Directors has adequate presence of independent directors and actively monitors key organizational matters. Overall governance infrastructure in place at the institution is considered satisfactory keeping in view the size of the organization.

For further information, please contact
Maha Al Jowesir
Assistant Manager – Corporate Communications & PR
Al Baraka Banking Group
Tel: +973 17541122 ext: 227
Fax:+973 17536533

Today's Top Stories

Posted by

Thursday, April 3- 2014 @ 11:18 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.

AME Info Services







Business DirectoryVIEW ALL

Search by name

Search by industry

Browse alphabetically






JobsVIEW ALL

Search for jobs

Latest Jobs