AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” (Excellent) of Bahrain Kuwait Insurance Company B.S.C. (BKIC) and its subsidiary, Takaful International Company BSC (TIC), both of which are domiciled in Bahrain. The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect BKIC’s 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 lift from BKIC’s parent company, Gulf Insurance Group K.S.C.P., due to the strategic importance of BKIC to the group.

TIC’s ratings consider its strategic importance to BKIC. TIC provides a platform to underwrite takaful business domestically and increases the overall operation’s market share and product offerings in Bahrain.

BKIC’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which was at the strongest level at year-end 2025, as measured by Best’s Capital Adequacy Ratio (BCAR). BKIC benefits from a relatively conservative asset allocation and a reinsurance programme placed mostly with reinsurers of excellent credit quality, which mitigates the elevated credit risk associated with the company’s high cessions on commercial risks. AM Best expects BKIC’s risk-adjusted capitalisation to be maintained at the strongest level.

BKIC has a track record of strong operating performance, and in 2025, generated a return on equity of 10.4% and a net-net combined ratio of 97.4% (both as calculated by AM Best). BKIC’s underwriting profitability has supported its overall earnings historically, with the company generating technical profits in each of the past five years; over the same period, investment returns also have contributed toward profitability. During 2025 and first half of 2026, the company was impacted by several large losses, which were largely covered by reinsurance. AM Best expects the company to maintain its strong operating results driven by underwriting performance and investment income over the medium term.

BKIC commands a leading position in Bahrain’s insurance market and a strong competitive position in Kuwait. BKIC reported insurance service revenue of BHD 117.3 million at year-end 2025 (2024: BHD 114.2 million). The company underwrites a well-diversified book of business on a gross basis, although its retained portfolio is concentrated in the motor and medical business lines.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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

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