The rating on Dubai-based Islamic Arab Insurance Co. (Salama/IAIC), which trades under the 'Salama' brand, reflects the company's strong commercial and very good financial profiles when viewed in conjunction with its principal subsidiaries, in particular the wholly-owned, Tunis-based reinsurance subsidiary, BEST RE (rated the same as Salama/IAIC given our view that the reinsurer is strategically 'core' to its parent). The consolidated Salama group's overall financial strength therefore derives from strong and diversified business positions--principally in Islamic markets--as well as from strong capitalization and liquidity, good operating performance, investment allocations, and financial flexibility. Salama/IAIC and its subsidiaries specialize in the provision of Shari'a compliant insurance (takaful) and, through BEST Re, reinsurance (retakaful), with 16.2% of the group's 2008 consolidated gross premiums
