MANAMA: AM Best has affirmed the credit rating of A- (excellent) with stable outlook of Bahrain Kuwait Insurance Company (gig-Bahrain).
Subsequent to its annual review, AM Best International affirmed the financial strength rating A- (excellent) and the long-term issuer credit rating of ‘A-’ of gig-Bahrain and the outlook for both ratings is stable.
The ratings reflect gig-Bahrain’s balance sheet strength, which AM Best categorises 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 gig-Bahrain’s parent company, Gulf Insurance Group, due to its strategic importance to the group.
gig-Bahrain chief executive Dr Abdulla Sultan said the management is pleased with the A- credit rating given the company has witnessed one the most difficult global 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 that the company has an excellent record of profitability reflecting good underwriting performance for various types of insurance.
He further said that 2019 was a particularly difficult year for the company as Bahrain had experienced economic challenges due to severe price-fluctuations in world oil market and continued rise in public debt.
Fiscal balancing measures introduced by the government of Bahrain helped the economy to some extent.
Also, 2020 witnessed the worst ever pandemic followed by a sudden sharp further drop in oil prices in March 2020.
This was also followed by downgrade in the sovereign rating of Bahrain.
However, timely measures and strategic planning helped the company to tide over the difficulties and post an impressive performance.
It may be noted that gig Bahrain and its subsidiary gig Bahrain-Takaful are the only local Bahraini insurance companies to be rated A-.
gig-Bahrain is a subsidiary of Gulf Insurance Group (GIG) which is the largest insurance Group in Kuwait in terms of written and retained premiums, with operations in the life and non-life as well as Takaful insurance.
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