AM Best affirms gig-Bahrain and Takaful credit rating

MANAMA: AM Best Europe Rating Services has affirmed the financial strength rating A- (excellent) and the long-term issuer credit rating of a- (excellent) of Bahrain Kuwait Insurance Company (gig-Bahrain) and its subsidiary Takaful International Company (gig-Bahrain Takaful), and the outlook for both ratings is stable.

According to the agency, the ratings reflect both companies’ balance sheet strength, which it assesses as “very strong”, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

The ratings also factor in the financial strength of their parent company, Gulf Insurance Group, due to the strategic importance to the group.

Dr Abdulla Sultan, chief executive of gig-Bahrain, said the management is very pleased with the credit rating given to the company and its subsidiary, despite the difficult economic cycles in recent history.

The rating reflects the financial strength of the company and its ability to meet its short and long-term obligations, he added.

“The company has an excellent record of profitability reflecting good underwriting performance for various types of insurance in Bahrain and Kuwait.”

He also said the company is particularly pleased with the turn-around and operational synergy with its subsidiary Takaful International.

Also commenting, Essam Al Ansari, chief executive of Takaful International Company, said the rating would enhance the confidence that clients have in the company and contribute to solidifying the company’s ability to fulfilling its financial and credit obligations and to be a prominent member of the Gulf Insurance Group and a subsidiary of gig-Bahrain.

He added that Takaful was able to achieve positive performance despite the economic and operational implications due to the adoption of balanced underwriting and investment policy.

As per data available, gig-Bahrain and its subsidiary gig-Bahrain Takaful are the only local Bahraini insurance companies to be rated A- (excellent) with stable outlook.

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