AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Abu Dhabi National Takaful Company P.S.C. (ADNTC) (United Arab Emirates) {UAE}. The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect ADNTC’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.

ADNTC’s balance sheet strength is underpinned by its risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), on a combined policyholders’ (PHF) and shareholders’ funds (SHF) basis. AM Best expects BCAR scores to remain at the strongest level, underpinned by sufficient internal capital generation to support the company’s anticipated business growth. A limiting factor in the company’s balance sheet strength is ADNTC’s high dependence on reinsurance, although the associated credit risk is partially mitigated through the use of a reinsurance panel of sound financial strength.

ADNTC has a track record of strong operating performance, evidenced by a consolidated three-year (2023-2025) weighted average return on equity of 20.5% (as calculated by AM Best). ADNTC’s combined family and general takaful portfolios have together achieved strong underwriting performance, with net/net combined ratios consistently below 90.0% over the previous three and a half years to June 2026. The balance of earnings between the PHF and SHF improved in 2025, and the first six months of 2026, resulting in the repayment of a significant portion of accumulated Qard Hasan to the SHF. As of June 2026, the Qard Hasan stood at AED 6.3 million, down from a peak of AED 35.9 million at year-end 2024.

The company has a niche, but defensible position, in the UAE insurance market as the largest domestic takaful operator. ADNTC reported growth in revenue of 27% in 2025, to AED 962.6 million (USD 262.1 million), in line with strategic growth targets and planned business diversification. AM Best notes that ADNTC faces strong competition from well-established peers in its target markets, and hence its growth strategy faces execution risk.

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.

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