Al Fajer Re awarded 'A-' rating

Al Fajer Retakaful Insurance Company (Al Fajer Re), a subsidiary of Dubai Banking Group, has been awarded Financial Strength Rating (FSR) and an Issuer Credit Rating (ICR) of "A-" (Excellent) by the US-based rating agency AM Best.

The company was given stable outlook in both the categories. The rating reflects the firm's excellent risk adjusted capitalisation, well capitalised retakaful fund, the calibre of its regionally experienced management team, and the strength of its principal shareholders, Dubai Group and Global Investment House.

Al Fajer Re is the first independent reinsurance company to obtain an "A-" rating by a globally recognised rating agency and the first retakaful company to be granted an "A-" as a start up. The company provides Shariah-compliant reinsurance protection, predominantly on a treaty basis, to non-life risks.

Salaam Al Shaksy, CEO of Dubai Banking Group, said: "This strong rating is an important and impressive first step for Al Fajer Re. With its compelling skill sets and our firm support, the company can only enhance the quality and professionalism in the Middle Eastern retakaful market. It is clear that there are tremendous opportunities ahead in this growing regional reinsurance sector and, accordingly, Al Fajer Re looks forward to addressing the requirements of its prospective client base."

Earlier this year, Dubai Group acquired a 51 per cent stake in Al Fajer Re.