The uncertainty regarding the 2011 Thai flood losses and the claim from a South Korean insurer at the Salama/IAIC group's largest subsidiary, BEST RE (L)(part of the Best Re subgroup), has significantly diminished. Consequently, we are revising our outlook on the Salama/IAIC ratings to stable from negative. At the same time, we are affirming our 'BBB+' ratings on Salama/IAIC to reflect our view of its satisfactory business risk profile and strong financial risk profile. The stable outlook reflects our expectation that Salama's very strong capital, maintained by earnings, will continue to support the current ratings through 2016. On Aug. 4, 2014, Standard&Poor's Ratings Services revised its outlook on Dubai-based Salama/Islamic Arab Insurance Co. (P.S.C.) (Salama/IAIC) to stable from
