A.M. Best Affirms Ratings of Solidarity General Takaful BSC (c)

LONDON--(BUSINESS WIRE)-- A.M. Best has affirmed the financial strength rating of B++ (Good) and the issuer credit rating of “bbb” of Solidarity General Takaful BSC (c) (SGT) (Bahrain). The outlook for each rating is stable.

The ratings of SGT reflect its adequate level of risk-adjusted capitalisation and niche market profile as a takaful operator in Bahrain. The ratings benefit from the financial strength of SGT’s parent company, Solidarity Group Holding BSC (c), and reflect SGT’s strategic importance to the group. An offsetting rating factor is SGT’s marginal underwriting performance.

SGT’s risk-adjusted capitalisation is measured on a consolidated basis (integrating both shareholders’ and policyholders’ funds) given the strength of regulation in Bahrain and the protection it provides to policyholders. Based on this, the company’s risk-adjusted capitalisation remains at a sound level and is sufficient to support its strategic initiatives. At year-end 2015, the company’s capital and surplus reached USD 24.3 million; however, its policyholders’ fund deficit amounted to USD 6.8 million.

SGT has an estimated 8% share of Bahrain’s insurance market and is the second largest provider in the fast-growing local takaful sector.

The company’s technical profits remained marginal in 2014 and 2015, chiefly pressured by the level of claims from the key lines of motor and medical. Whilst SGT has taken a number of initiatives to improve technical profitability, including greater actuarial involvement in the pricing and close monitoring of medical accounts, this remains a challenge in Bahrain’s competitive insurance market.

This press release relates to rating(s) that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

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A.M. Best

Michael Dunckley

Financial Analyst

+44 20 7397 0321

[email protected]

or

Ghislain Le Cam, CFA

Associate Director, Analytics

+44 20 7397 0268

[email protected]

or

Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

[email protected]

or

Jim Peavy

Assistant Vice President, Public Relations

+1 908 439 2200, ext. 5644

[email protected]

Source: A.M. Best