AM Best has affirmed the Financial Strength Rating of A- (Excellent) and a Long-Term Credit Rating of “a-” (Excellent) of Al Khaleej Takaful Insurance Company Q.P.S.C. (AKTI) (Qatar). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect AKTI’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.

AKTI is a takaful insurer and operates through a hybrid model, whereby the shareholders’ fund charges the policyholders’ fund (PHF) a Wakala fee based on gross written contributions and a Mudarabah fee based on investment income.

AKTI’s balance sheet strength is underpinned by its risk-adjusted capitalisation comfortably above the threshold for a strongest assessment, as measured by Best’s Capital Adequacy Ratio (BCAR). AM Best considers the company’s risk-adjusted capitalisation on a combined basis, including its policyholders’ and shareholders’ funds, due to the requirement that the shareholders’ fund would have to support the PHF if it were to fall into deficit. Overall, despite its meaningful exposure to Qatari real estate, AKTI has a conservative and liquid investment portfolio, with cash and sukuk holdings covering Takaful arrangement liabilities net of Retakaful arrangement assets by 432% as at year-end 2025. An offsetting factor to the balance sheet strength assessment is the company’s moderately high reliance on reinsurance, which is mitigated partially by a reinsurance panel of excellent credit quality.

AM Best assesses AKTI’s operating performance as strong. The company has reported robust underwriting performance consistently, with a five-year (2020-2024) weighted average combined ratio (including short-term life results) of 83%. Whilst underwriting performance worsened in 2025, with the company reporting a net/net combined ratio of 99% (2024: 86%) based on the new FAS 42 and 43 reporting standards, profitability is expected to improve in 2026, following management's corrective actions.

AKTI holds a niche position within its domestic insurance market, but has been steadily growing in recent years, evidenced by a compounded annual growth rate of 22% over the five-year period between 2020 and 2024. The company materially expanded its top line in 2024, in part as a result of a fronting arrangement signed with a leading international medical provider during the last quarter of 2023. The company continued growing its top line in 2025, recording QAR 524 million of Takaful Contributions, up 20% compared with 2024. Despite the good growth, AKTI has a relatively low product diversification, with its business mix mainly dominated by motor and medical lines on a net basis.

AM Best notes that the ongoing conflict in the region is evolving rapidly. At this stage, the conflict has not had a material impact on AKTI; however, AM Best will monitor the situation closely.

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, Best’s Performance Assessments, Best’s Preliminary Credit Assessments 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 specialising 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. For more information, visit www.ambest.com.

Copyright © 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260304246363/en/

Romeo Berti
Senior Financial Analyst
+44 20 7397 0267
romeo.berti@ambest.com

Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
christopher.sharkey@ambest.com

Ben Diaz-Clegg
Associate Director, Analytics
+44 20 7397 0293
ben.diaz-clegg@ambest.com

Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
al.slavin@ambest.com

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