BKIC News

A.M. Best affirms credit rating of A- (Excellent) with stable outlook of Bahrain Kuwait Insurance and its subsidiary Takaful International

19/09/2021

Subsequent to its annual review, A.M. Best Europe – Rating Services Limited affirmed the financial strength rating A- (Excellent) and the long-term issuer credit rating of “a-“ (Excellent) of Bahrain Kuwait Insurance Company B.S.C. (gig-Bahrain) and its subsidiary Takaful International Company B.S.C. (gig-Bahrain Takaful), and the outlook for both ratings is stable.

 

According to the agency’s statement, the ratings reflect both companies’ 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 the financial strength of their parent company, Gulf Insurance Group K.S.C.P., due to the strategic importance to the group.

 

Dr. Abdulla Sultan, CEO of gig-Bahrain stated that the management is very pleased with the A- Credit Rating given to the company and its subsidiary has witnessed 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 that the company has an excellent record of profitability reflecting good underwriting performance for various types of insurance in Bahrain and Kuwait. He also quoted that the company is particularly pleased with the turn-around and operational synergy with its subsidiary Takaful International Company.

 

Commenting on obtaining this excellent financial and credit rating, Mr. Essam Al-Ansari, CEO of Takaful International Company, said that this reflects the company's orientation in working as a pioneer in the takaful sector in the Kingdom as this would enhance the confidence of the company's clients and contribute to solidifying the company's ability to fulfill 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 International Company was able to achieve positive performance despite the economic and operational implications due to the adoption of balanced underwriting and investment policy.

 

It may be noted that gig Bahrain and its subsidiary gig Bahrain-Takaful are the only local Bahraini insurance companies to be rated A- (Excellent) with stable outlook.

 

Bahrain Kuwait Insurance Company B.S.C. (gig-Bahrain) and its subsidiary Takaful International Company B.S.C. (gig-Bahrain Takaful) are part 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. Gulf Insurance has become one of the largest insurance networks in the Middle East and North Africa with companies in Bahrain, Saudi Arabia, Jordan, Lebanon, Syria, Egypt, Algeria, Iraq, Emirates, Turkey, and Kuwait.

                                                                                                                                        

KIPCO – Kuwait Projects Company – is Gulf Insurance Group’s largest shareholder, followed by the Canadian-based Fairfax Financial Holding Ltd.