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

ENPNewswire-September 16, 2021--AM Best Affirms Credit Ratings of Bahrain Kuwait Insurance Company B.S.C. and Takaful International Company BSC

(C)2021 ENPublishing - http://www.enpublishing.co.uk

Release date- 15092021 - 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.

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...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT