The Islamic International Rating Agency (IIRA) has reaffirmed the takaful financial strength (TFS) rating of The Islamic Insurance Company (TIIC) in Jordan at 'A' (Single A), with a stable outlook. The corporate and shari'ah governance framework at the institution remains sound, the IIRA said.
TIIC is the first and one of two takaful operators in Jordan, and is the 7th largest player commanding a share of 4.2% of gross premiums written in the insurance industry. IIRA observes that TIIC's growth trends, although affected by economic pressures, have remained favourable compared to the industry in recent years. The company has been successful through increasing the proportion of low-risk and highly profitable life takaful segment in their revenue mix.
IIRA also notes that TIIC draws an advantage from its association with Jordan Islamic Bank (JIB), which has a strong retail franchise in the country and is TIIC's major shareholder. The company sources a significant amount of profitable business from JIB.
According to the IIRA, diversification in earnings could help the company to buffer the volatility inherent in key lines of takaful businesses and boost overall returns.