AM Best affirms the credit ratings of Bahraini National Insurance Company BSC (c)


[ad_1]

LONDON–(COMMERCIAL THREAD) –AM Best confirmed the financial strength rating of B ++ (good) and the long-term issuer credit rating of “bbb +” (good) of The Bahrain National Insurance Company BSC (c) (BNI) (Bahrain). The outlook for credit ratings is stable.

The ratings reflect the strength of BNI’s balance sheet, which AM Best considers to be very strong, as well as its strong operational performance, limited business profile and appropriate management of corporate risks.

BNI’s balance sheet strength relies on risk-adjusted capitalization at the highest level, as measured by Best’s capital adequacy ratio (BCAR), robust liquidity and a well-diversified investment portfolio by class. ‘assets. Compensating factors include a heavy reliance on reinsurance. The strengthening of reserves was required in 2017 and 2018 following an external actuarial review and has led the company to adopt more prudent reserve practices. AM Best expects BNI’s risk-adjusted capitalization to remain at the highest level over the medium term, despite the company’s high exposure to equities, real estate and other unlisted securities (58 % of equity at end 2020), which exposes capital adequacy to potential volatility.

BNI’s operational performance in 2020 remained at a high level, demonstrated by a robust combined ratio of 81.6%, up from 106.2% in 2017, and return on equity of 18.4%. AM Best expects the company’s potential returns to be at a similar level in 2020.

BNI has a well-established franchise as one of the largest non-life insurance companies in Bahrain, where it holds a leading position in the automotive market. Although BNI enjoys a strong brand and a good reputation locally, the assessment of the company’s business profile is limited by its concentration in Bahrain, which has a small insurance market that offers limited profitable growth opportunities.

This press release relates to credit ratings published on the AM Best website. For all rating information relating to the posting and relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this post, please see AM Best’s Recent Rating Activity webpage. . For more information on the use and limitations of credit rating reviews, please see Best’s Guide to Credit Ratings. For more information on the proper use of Best Credit Ratings, Best Preliminary Credit Ratings, and AM Best press releases, please see the Guide to Appropriate Use of Best Ratings and Ratings.

AM Best is a global credit rating agency, news publisher, and data analytics provider specializing in the insurance industry. Based in the United States, the company operates in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2021 by AM Best Rating Services, Inc. and / or its affiliates. ALL RIGHTS RESERVED.

[ad_2]

About Ian Crawford

Check Also

Too big to fail? These 2 big investment banks are in trouble right now

Image source: Getty Images Should these banks be bailed out? Key points Credit Suisse and …