AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Qatar Islamic Insurance Group Q.P.S.C. (QIIG) (Qatar). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect QIIG’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.

QIIG 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 (GWC) and a Mudarabah fee based on investment income.

QIIG’s balance sheet strength is underpinned by its risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). AM Best assesses 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. Other positive balance sheet factors include the company’s track record of internal capital generation through the retention of earnings and QIIG’s accumulated surplus within the PHF. An offsetting factor to the assessment is QIIG’s exposure to illiquid real estate assets and investments in associates, which accounted for 40% of its total investments as at year-end 2025. Despite this, the company maintains a robust level of liquidity, with its consolidated cash and deposits covering insurance contract liabilities net of reinsurance contract assets by 234.6% at year-end 2025, indicating that the company holds sufficient surplus capital to manage the higher investment risk appetite.

AM Best assesses QIIG’s operating performance as strong. The company reported a robust net/gross combined ratio of 73% for its combined life and non-life business under the new FAS 42 & 43 accounting standards (IFRS 17-equivalent for Takaful operators) in 2025, down from 98% in 2024. In 2024, QIIG suffered material losses on its medical book of business, which were remediated swiftly. AM Best expects profitability to remain broadly consistent with 2025 results over the medium term, supported by strong underwriting profitability and moderate investment returns.

QIIG holds a niche position within its domestic insurance market, where it is a market-leading takaful player. The company has good diversification by line of business, offering a range of Sharia-compliant insurance products. In 2025, QIIG recognised QAR 473 million (USD 131 million) of takaful contributions. The business profile assessment is constrained by the company’s geographical concentration and limited competitive position within the wider Qatari insurance market.

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/20260521308148/en/

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

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

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

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

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