In our view, First Takaful Insurance Co.'s annual results for 2009 raise concerns about First Takaful's future profitability.

We are therefore placing our 'BBB-' ratings on First Takaful on CreditWatch with negative implications.

We expect to resolve the CreditWatch status within the next 90 days.

FRANKFURT (Standard & poor's) May 12, 2010--Standard & poor's Ratings Services said today it placed its 'BBB-' counterparty credit and insurer financial strength ratings on Kuwait-based First Takaful Insurance Co. on CreditWatch with negative implications.

"The rating action mainly reflects our view of the deteriorating underwriting performance of the takaful fund, poor investment results for both members and shareholders, and diminished growth in a very difficult economic and competitive environment," said Standard & poor's credit analyst Wolfgang Rief. "It also reflects our uncertainties about management's strategy and measures to restore profitability and regain growth momentum."

We expect to resolve the CreditWatch within the next 90 days following discussions with the company's management to further clarify the reasons for the deterioration in performance. In particular, we intend to get more insight into how the company is responding to the challenging dynamics of the market and what strategies and measures it plans to implement to achieve improvements.

"If we decide to downgrade the company, the rating change is unlikely to exceed one notch," said Mr. Rief.

- Ends -

© press Release 2010