Takaful Global - ACR mulls over options for retakaful units
Source: Middle East Insurance Review | Feb 2016
ACR Capital Holdings (ACR) said it is working closely with the fellow shareholders of ACR ReTakaful Holdings to map out the future of the company and its operating entities, ACR ReTakaful MEA B.S.C. (c) and ACR ReTakaful Berhad. This follows an A.M. Best report on 18 December 2015 which placed the retakaful companies’ financial strength and issuer credit ratings at ‘B++’ (Good).
With a stake of 20%, ACR is a minority shareholder of ACR ReTakaful Holdings, the parent company of the retakaful companies. ACR ReTakaful Holdings’ other shareholders are Khazanah Nasional Berhad and Dubai Islamic Investment Group LLC, each owning a 40% stake in the retakaful group.
ACR Group Chief Executive Hans-Peter Gerhardt said: “While the long-term prospect of the takaful market appears strong, the retakaful development has been slow so far. ACR will consider its options for the retakaful companies through its perspective as a minority shareholder and as a committed industry stakeholder. We will endeavour to find the best solution in full cooperation with all other shareholders.”
Mr Gerhardt added: “At the same time, we would like to reiterate our full support to the management and clients of the retakaful companies, which includes providing our reinsurance capacity.”
ACR’s wholly owned subsidiary, Asia Capital Re, had its financial strength rating of ‘A-’ (Excellent) reaffirmed by A.M. Best on 16 December 2015. It is also rated ‘A-’ with a stable outlook by Standard & Poor’s.