London, October 11, 2023–(Business Wire)–AM best The financial strength rating of Bahrain-Kuwait Insurance Company BSC (GIG Bahrain) and its subsidiary Takaful International Company BSC (GIG Bahrain Takaful) is “A- (excellent)” and the long-term issuer credit rating is “a- (excellent)”. ” has been confirmed. ), both reside in Bahrain. The outlook for these credit ratings (ratings) is stable.
The rating reflects the strength of GIG Bahrain’s balance sheet, which AM Best considers to be very strong, as well as its solid operating performance, neutral business profile and appropriate corporate risk management. ing. The rating also incorporates an upgrade from GIG Bahrain’s parent company, Gulf Insurance Group KSCP, due to GIG Bahrain’s strategic importance to the group.
GIG Bahrain Takaful’s ratings take into account its strategic importance to GIG Bahrain. GIG Bahrain Takaful provides a platform to undertake Takaful business in the country, increasing the overall market share and product offering of the business in Bahrain. Following its acquisition by GIG Bahrain, GIG BahrainTakaful reported improved technological performance.
GIG Bahrain’s balance sheet strength is supported by its total risk-adjusted capital, which was the strongest at end-2022, as measured by the Best Capital Adequacy Ratio (BCAR). GIG Bahrain benefits from a relatively conservative asset allocation and a reinsurance program centered around high-quality reinsurers, with increased credit risk associated with the company’s high concessions on commercial risk. It has been reduced. AM Best expects GIG Bahrain’s total risk-adjusted capital to be managed at the strongest level throughout the company’s forecast period.
GIG Bahrain’s strong performance is evidenced by a five-year (2018-2022) weighted average return on equity of 9.5%, calculated by AM Best, with earnings supported by underwriting and investment results over the period. I am. GIG Bahrain’s underwriting profitability continues to support its overall profits, as evidenced by its five-year (2018-2022) weighted average combined ratio of 93.7%, calculated by AM Best. Generating positive revenue. AM Best expects the company’s underwriting business to continue to perform well.
GIG Bahrain holds a leading position in the insurance market in Bahrain and has a strong competitive position in Kuwait. The company maintains an excellent domestic franchise, strengthened by the acquisition of GIG Bahrain Takaful. The company has built a well-diversified portfolio on a gross premium basis. However, on a pure premium basis, there is a concentration in the automotive and medical businesses.
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