AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of ‘a-‘ (Excellent) for Damaan Islamic Insurance Company ‘BEEMA’ (Q.P.S.C.), a Qatar-based takaful insurer. The stable outlook on these Credit Ratings reflects Beema’s very strong balance sheet, strong operating performance, limited business profile, and appropriate enterprise risk management.
Key Rating Factors
Beema’s balance sheet strength is supported by its risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). The company’s risk-adjusted capitalization is assessed on a combined basis, including both policyholders’ and shareholders’ funds, due to Qatar’s strong domestic regulation requiring shareholders to support policyholders’ funds if needed. Other positive factors include Beema’s internal capital generation through retained earnings and its ability to accumulate and distribute surpluses within the policyholders’ fund.
Operating Performance
At year-end 2024, Beema reported capital and surplus of QAR 795.0 million, an 11.1% increase from year-end 2023. AM Best views Beema’s operating performance as strong, with a five-year weighted average combined ratio of 80.5% between 2020 and 2024. Although the combined ratio increased to 93.4% in 2024 due to losses from the United Arab Emirates floods, the company’s core life & health segment remains profitable.
Business Profile and Risk Management
Beema holds a niche position as the second-largest takaful player in Qatar by gross written contributions, with a diversified portfolio across various business lines. The company’s concentration risk is partially mitigated by its diversified gross and net written contributions. Beema also maintains a growing portfolio of inward international facultative reinsurance, further enhancing its diversification.
For more information on AM Best’s rating rationale and Credit Rating opinions, please refer to their Recent Rating Activity web page and Guide to Best’s Credit Ratings.
