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Press release content from Business Wire. The AP news staff was not involved in its creation.
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Press release content from Business Wire. The AP news staff was not involved in its creation.

AM Best Affirms Credit Ratings of Bahrain Kuwait Insurance Company B.S.C. and Takaful International Company BSC

September 15, 2021 GMT

LONDON--(BUSINESS WIRE)--Sep 15, 2021--

AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” (Excellent) of Bahrain Kuwait Insurance Company B.S.C. (gig-Bahrain) and its subsidiary, Takaful International Company BSC (gig-Bahrain Takaful), both of which are domiciled in Bahrain. The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect gig-Bahrain’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management. The ratings also factor in lift from gig-Bahrain’s parent company, Gulf Insurance Group K.S.C.P., due to the strategic importance of gig-Bahrain to the group.

gig-Bahrain Takaful’s ratings consider its strategic importance to gig-Bahrain, with the company providing a platform to underwrite takaful business domestically and increasing the overall operations’ market share in Bahrain. Following its acquisition by gig-Bahrain, gig-Bahrain Takaful has reported improved technical results, with further improvements expected from operational synergies.

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gig-Bahrain’s balance sheet strength is underpinned by risk-adjusted capitalisation that was at the strongest level at year-end 2020, as measured by Best’s Capital Adequacy Ratio (BCAR). gig-Bahrain also benefits from a relatively conservative asset allocation and a robust reinsurance programme placed mostly with reinsurers of good credit quality, which mitigates the elevated credit risk associated with the company’s high cessions on commercial risks. AM Best expects gig-Bahrain’s risk-adjusted capitalisation to remain at the strongest level.

gig-Bahrain’s recent underwriting performance has been sound, with a five-year average (2016-2020) combined ratio 94.6%. AM Best expects prospective underwriting performance to improve following management actions in its motor lines of business, increased retention of profitable business and further synergies with gig-Bahrain Takaful.

gig-Bahrain has a market-leading position in Bahrain’s insurance market and a strong market position in Kuwait. The company maintains an excellent domestic franchise, which has been strengthened following its acquisition of gig-Bahrain Takaful. The company operates in Bahrain and Kuwait, and writes a well-diversified portfolio on a gross premium basis; however, on a net premium basis, its portfolio is concentrated heavily toward motor risks.

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This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2021 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com:https://www.businesswire.com/news/home/20210915005832/en/

CONTACT: Algirdas Karvelis

Financial Analyst

+44 20 7397 0285

algirdas.karvelis@ambest.comTim Prince

Director, Analytics

+44 20 7397 0320

timothy.prince@ambest.comChristopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.comJim Peavy

Director, Communications

+1 908 439 2200, ext. 5644

james.peavy@ambest.com

KEYWORD: UNITED KINGDOM EUROPE

INDUSTRY KEYWORD: INSURANCE PROFESSIONAL SERVICES

SOURCE: AM Best

Copyright Business Wire 2021.

PUB: 09/15/2021 11:29 AM/DISC: 09/15/2021 11:29 AM

http://www.businesswire.com/news/home/20210915005832/en