AM Finest has affirmed the Financial Toughness Ranking of B++ (Good) as well as the Long-Term Issuer Credit Ranking of “bbb+” (Good) of The Bahrain National Insurance Provider BSC (c) (BNI) (Bahrain). The outlook of these Credit scores Rankings (scores) is stable.
The ratings mirror BNI’s balance sheet stamina, which AM Best analyzes as really solid, as well as its solid operating efficiency, minimal company account and also ideal venture threat administration.
BNI’s annual report stamina is underpinned by its risk-adjusted capitalisation at the strongest level, as gauged by Best’s Resources Adequacy Ratio (BCAR), durable liquidity, and also a well-diversified financial investment portfolio by asset class. AM Best anticipates BNI’s risk-adjusted capitalisation to remain at the greatest degree over the medium term, sustained by internal funding generation in spite of reasonably high dividend circulations to its parent, Bahrain National Holding Business BSC. Partly offsetting ranking elements include high reinsurance reliance and also elevated asset danger, with direct exposure to equities, realty as well as unpublished safeties representing 51% of investors’ equity at year-end 2021.
BNI has a record of solid operating performance, shown by five-year (2017-2021) return on equity (ROE) of 14.0%. Improving technical earnings in recent times, following the unfavorable impact one-off books strengthening incurred in 2017 and 2018, has actually supported a strong five-year (2017-2021) weighted average combined proportion of 93.0% (2016-2020: 106.2%). Operating performance stayed strong in 2021, translating in a ROE of 20.1% (2020: 18.4%) and also a mixed ratio of 78.1% (2020: 81.6%). Moving forward, AM Ideal anticipates the firm’s go back to continue to be strong prospectively.
BNI has a reputable franchise business as one of the biggest non-life insurance companies in Bahrain, where it composed gross written costs of BHD 27.0 million (USD 72.1 million) in 2021. Specifically, the firm holds a market-leading placement in the motor industry. Although BNI gain from a strong brand name and good reputation locally, the business’s company profile evaluation is constrained by its concentration to Bahrain’s tiny as well as extremely affordable non-life insurance market.
Last Updated: 12 January 2023
