The operating performance of Damaan Islamic Insurance Company 'BEEMA' (Beema) is strong, as it has consistently reported robust technical performance, according to AM Best. The global credit rating agency expects profitability to moderate over the medium term as the company expands, but to remain strong.
The insurer has a five-year (2020-2024) weighted average combined ratio of 73.3% (including credit life business). From the start of 2025, Beema adopted the new FAS 42 & 43 accounting standards (IFRS 17-equivalent for takaful operators). Under these new standards, Beema achieved a net/gross combined ratio (including credit life business) of 79.2% in 2024 and 84.7% in 2025.
Ratings affirmed
AM Best has affirmed Beema’s Financial Strength Rating of ‘A-’ (Excellent) and the Long-Term Issuer Credit Rating of ‘a-’ (Excellent). The outlook of these credit ratings is ‘Stable’.
The ratings reflect Beema’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
Balance sheet
Beema is a takaful insurer and operates through a hybrid model, whereby the shareholders’ fund charges the policyholders’ fund (PHF) a Wakala fee based on gross written contributions (GWC) and a Mudarabah fee based on investment income.
Beema’s balance sheet strength is underpinned by its risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). AM Best assesses the company’s risk-adjusted capitalisation on a combined basis, including its policyholders’ and shareholders’ funds, due to the requirement that the shareholders’ fund must support the PHF if it were to fall into deficit.
Other positive balance sheet strength factors include Beema’s track record of internal capital generation through the retention of earnings and its ability to accumulate surplus within the PHF whilst regularly distributing it to policyholders. At year-end 2025, Beema reported capital and surplus of QAR776.9m [$213.4m] (inclusive of QAR157.7m of accumulated policyholder surplus), an 11.1% increase as compared with year-end 2024.
Business profile
Beema holds a niche position within its domestic insurance market, as the second largest takaful player by GWC. However, in the context of the wider Qatari insurance market, Beema has a more modest profile, with a market share of approximately 5%. The company’s concentration of contributions from a single market are partially mitigated by a diversified portfolio by line of business, both on a gross and net written contributions basis. Further diversification is achieved through a small, albeit growing, portfolio of inward international facultative reinsurance.