ISA receives GAC halal accreditation The organisation is committed to addressing the needs of the rapidly expanding halal marketplace
JULY-AUGUST . 2023 | @ Halal
Foreign News
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ISA receives GAC halal accreditation The organisation is committed to addressing the needs of the rapidly expanding halal marketplace
ISLAMIC Services of America ( ISA ) has received its formal Halal Product Certification accreditation for GSO 2055-2 by the GCC Accreditation Center ( GAC ) based in Riyadh , Saudi Arabia . This accreditation demonstrates technical competency in Quality Management Systems , ISO standards , and established international halal standards .
ISA is a halal certification organisation that works with domestic and international manufacturers to certify their consumable and non-consumable products for Muslims and other halal consumers .
This benefits manufacturers , distributors and trade partners who play a crucial role as net exporters of food products to restore and strengthen the global supply chain .
Halal certification can give manufacturers and food processors a competitive edge over businesses that do not have certification . It allows them to cater to a more extensive
AM Best has affirmed the Financial Strength Rating of A- ( Excellent ) and the Long-Term Issuer Credit Rating of “ A- ” ( Excellent ) of Qatar Islamic Insurance Group QPSC ( QIIG ) ( Qatar ). The outlook of these Credit Ratings ( ratings ) is stable .
The ratings reflect QIIG ’ s balance sheet strength , which AM Best assesses as very strong , its strong operating performance , limited business profile and appropriate enterprise risk management .
QIIG employs a hybrid takaful 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 . QIIG ’ s ability to accumulate surpluses within the PHF whilst regularly distributing surplus back to policyholders supports the sustainability of its takaful model .
QIIG ’ s balance sheet strength is underpinned by its risk-adjusted capitalisation , which was at the most substantial level at year-end 2022 , as measured by Best ’ s Capital Adequacy Ratio ( BCAR ). It is expected to remain comfortably at this level over the medium term .
Supporting the balance sheet strength assessment is QIIG ’ s consistent demonstration of internal capital generation . In 2022 , the company reported capital and surplus of QAR 456.3 million ( US $ 126.1 million ), growing 8.3 per cent compared with 2021 ( 5.7 per cent growth when including the PHF to QAR 701.2 million [ US $ 193.8 million ]).
While maintaining sufficient liquidity to support its insurance operations , QIIG ’ s investments portfolio continues to carry exposure to higher-risk real estate assets and associates , accounting for 40 per cent of its total investments as of year-end 2022 , albeit reducing in recent years .
QIIG is moderately dependent on reinsurcustomer base through market expansion .
The global halal food and beverage market is vast , with over 1.8 billion Muslims worldwide , many of whom consume halal products . Halal certification facilitates entry into international markets and access to food consumers who comprise nearly a quarter of the world ’ s population .
The awarded GAC accreditation is a significant milestone for ISA as it further expands its global recognition by high-profile halal governing bodies in Malaysia , Indonesia , Singapore and the World Halal Food Council ( WHFC ) consisting of over 50 organisations in more than 35 countries .
Jalel Aossey , President of ISA , assessed and summarised this accomplishment by saying : “ ISA continues with its decades-long expertise to address matters most relevant to the growth of the global halal market .”
“ As an organisational achievement , this accreditation is a further recognition of the excellent team of people at ISA who are among the leaders in the halal industry and committed to addressing the needs of the rapidly expanding halal marketplace .”
Concurrently , ISA received its ISO 17065 conformity assessment accreditation for the certification of products , services and processes from A2LA , the American Association for Laboratory Accreditation , based in Frederick , Maryland .
AM Best affirms credit ratings of Qatar Islamic Insurance Group QPSC
ance , as the group cedes a high proportion of its significant commercial risks .
QIIG ’ s ability to generate strong operating returns is demonstrated by its five-year weighted average return-on-equity ratio of 13.8 per cent ( 2018-2022 ). Profitability is driven mainly by QIIG ’ s solid and stable technical results , which have generated positive returns in the last 10 years .
The company ’ s earnings have been moderately supported by investment income ; however , investment yields have experienced some volatility in recent years driven by fair value losses arising on real estate and the
impairment of investments in associates .
QIIG holds a niche position within its domestic insurance market as an established provider of Sharia-compliant products . In 2022 , QIIG reported a nine per cent increase in contributions compared with 2021 , writing GWC of QAR 467.3 million ( US $ 129.1 million ).
Whilst the group looks to expand its geographical presence , operations remain concentrated in Qatar , where it maintains a strong reputation benefiting from its track record of distributing surpluses back to its policyholders . –