Monday 09, July 2018 by Kudakwashe

A.M. Best affirms its A- credit ratings on Bahrain Kuwait Insurance Company

 

The company’s consolidated capital position is sufficiently robust to absorb the increased capital requirements. 

  

A.M. Best has affirmed the A- financial strength rating on Bahrain Kuwait Insurance Company with a stable outlook.
The excellent ratings are a reflection of the insurance company’s sound balance sheet, a strong operating performance, neutral business profile and appropriate enterprise risk management.

In a statement, A.M Best, said that the ratings are aided by the financial strength of Bahrain Kuwait Insurance’s parent company, Gulf Insurance Group.

Despite the increase in underwriting and investment risks resulting from the acquisition of Takaful International Company during, Bahrain Kuwait Insurance’s consolidated balance sheet benefits from a relatively conservative asset allocation and a well-rated reinsurance panel, which mitigates the heightened credit risk associated with the company’s high cessions on commercial risks.

The operating performance of the insurance company posted an excellent track record of generating technical and operating profits, reporting a five-year (2013-2017) average combined ratio of 79 per cent on a standalone basis.

A.M. Best expects operating performance to improve prospectively, as Bahrain Kuwait Insuarance Company aligns its core business functions and achieves synergies with the subsidiary.  

 

  

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