ACR Capital considers future of ACR ReTakaful
Risk Solutions group ACR Capital Holdings has announced that it is working closely with fellow shareholders of ACR ReTakaful Holdings, the Islamic reinsurance entity, to map out the future of the company and its operating entities.
The announcement follows an AM Best report on 18 December 2015 which placed the ReTakaful Companies’ financial strength rating at B++.
With a stake of 20 percent, ACR is a minority shareholder of ACR ReTakaful Holdings, the parent company of the ReTakaful Companies. ACR ReTakaful Holdings’ other shareholders are Khazanah Nasional Berhad and Dubai Islamic Investment Group, which each owns a 40 percent stake in the retakaful group.
“While the long term prospect of the takaful market appears strong, the retakaful development has been slow so far,” said Hans-Peter Gerhardt, group chief executive, ACR.
“ACR will consider its options for the ReTakaful Companies through its perspective as a minority shareholder and as a committed industry stakeholder. We will endeavour to find the best solution in full cooperation with all other shareholders.”
“At the same time, we would like to reiterate our full support to the management and clients of the ReTakaful Companies, which includes providing our reinsurance capacity.”
Separately, ACR indicates that it plans to further integrate another associate company, Asia Capital Reinsurance Malaysia, into the ACR group, as part of its strategic drive to streamline operations. ACR is currently a 30 percent shareholder of the Kuala Lumpur-based reinsurer. The financial strength rating of ACR Malaysia was most recently reaffirmed at A- by AM Best on 16 December 2015.
ACR’s wholly-owned subsidiary, Asia Capital Re also received financial strength rating reaffirmations of A- from AM Best on 16 December 2015. It is also concurrently rated A- with stable outlook by Standard & Poor’s.
