Moody’s assigns A3 rating to Al Rajhi Takaful with stable outlook

Moody’s Investor Service assigned, on Oct.12, an A3 insurance financial strength rating (IFSR) to Al Rajhi Company for Cooperative Insurance (Al Rajhi Takaful) with a stable outlook.

The rating reflects the company’s strong market position and brand as the third largest player in the Saudi Arabian insurance market, good asset quality, consistently good profitability with a return on capital (ROC), and low reserve adequacy risk.

It also reflects the predominance of short tail business in Al Rajhi Takaful’s business mix and the use of in-house actuarial capabilities to set up and monitor reserves.