Low Appetite For Dubai Sukuks

The appetite for Dubai-based sukuks will be low this year as investors perturbed by recent defaults involving UAE companies look to other markets, a credit ratings agency has claimed. Standard & Poor’s (S&P) said that sharia’a compliant bonds were considered risky investments after Kuwait’s Investment Dar and Saudi’s Saad Group defaulted on their respective loans in 2009. Both companies had recently completed sukuk issues.

Dubai Lessons

What has Dubai really learned from the financial crisis? A question investors are likely to ask Dubai’s government or corporate decision-makers deep into 2010 as they attempt to work off the excesses of the past.

IFSB Issues Takaful Guidance

Islamic financial services industry set for improved “soundness” and “stability” following IFSB ruling in Kuala Lumpur.

Three Companies Mull Takaful JV

Italan insurer Assicurazioni Generali, Qatar Islamic Bank (QIB), and broker Beema are looking into forming a joint venture in the takaful sector. QIB chairman, Sheikh Jassim bin Hamad bin Jassim bin Jabr Al Thani, said: “QIB is delighted to look into the possibilities of establishing strategic partnerships in the takaful business with a view to create a leading takaful player. Our plans are to launch the takaful products in the GCC countries first, giving priority to our local and regional markets, and then place a particular focus on geographic areas which are relevant to takaful.”

Al Ittihad Gets B+

AM Best Co has assigned a financial strength rating of B+ (Good) and an issuer credit rating of “bbb-” to Al Ittihad Al Watani (L’Union Nationale) Societe Generale d’Assurances du Proche Orient sal (Al Ittihad) (Lebanon). The ratings of Al Ittihad reflect its improving capital position, robust underwriting performance and good business profile. Offsetting factors include its weak investment strategy and underdeveloped risk management framework.

B++ for Jordan Insurance

AM Best Co has assigned a financial strength rating (FSR) of B++ (Good) and an issuer credit rating (ICR) of “bbb” to Jordan Insurance Company Plc (JIC). The ratings of JIC reflect its strong level of risk-adjusted capitalisation, robust underwriting performance and established profile in the Jordanian insurance market. An offsetting factor is the firm’s investment strategy, which gives rise to volatile investment performance.

MEICO Secures BBB Rating

Standard & Poor’s issues ratings boost for Jordanian insurance firm.

GCC Bourse Review

Thomas Schellen, head of insurance opportunities at ABQ Zawya, casts his eye over share price performances across the GCC and assesses how listed insurance companies fared in 2009.

Seal Of Approval

With investment income curtailed, rated insurance companies across the Middle East and North Africa face greater scrutiny of their financial strength and risk management practice. Policy spoke to Anandi Nangy-Kotecha, managing senior financial analyst at AM Best, and Kevin Willis, director at Standard & Poor’s.

Tentative Steps From The UAE Regulator

Alfred Thornton, a lawyer in Clyde & Co’s insurance team, considers developments related to the UAE Insurance Authority.

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