Emirates Retakaful faces uncertainty after CEO, CFO resignations
Emirates Retakaful Limited (ERL) faces uncertainty regarding the future shareholding structure, management team and strategy after both the CEO and the chief financial officer resigned, according to AM Best.
As a result, the ratings agency downgraded the Long-Term Issuer Credit Rating to “bbb” from “bbb+” and placed these Credit Ratings (ratings) under review with negative implications.
The rating actions follow an announcement by ERL regarding a potential sale of the company and changes in the senior management team. The CEO and CFO will be leaving the company after their six-month notice periods. AM Best also pointed to ERL’s declining business profile.
ERL lacks scale and has struggled with growth in what remains a soft global reinsurance market, AM Best explained. The company reported a significant contribution adjustment at year-end 2016, which gave rise to concern over the company’s internal control environment. Gross written contributions are expected to be circa $70 million by year-end 2017.
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